Developing Countries and the 2008/2009 Slowdown

December's startling news that Chinese trade shrank for the first time since 2001 and that India's industrial output fell for the first time since 1994 will have dispelled any remaining hope that developing countries would be insulated from the global financial crisis.

Developing countries’ economies have been growing faster than those of developed countries for some time, including remarkable growth in African countries. But it is now clear that the financial crisis that emerged in the financial sector in developed countries and then spread to developed countries’ real sectors, such as manufacturing, has already affected confidence in the financial markets of emerging economies, and is starting to affect poorer countries.

(HT: ODI)