Emerging Market Slump Hurting Global Economy

The loss of economic momentum in some emerging market economies (EME) is affecting global growth, the OECD has warned, despite strengthening recoveries in most developed economies.

In its Interim Economic Assessment, published Tuesday, the organization said that “transitory factors” had led to an uneven growth picture in several cases, with emerging economies of particular concern.

“Given that emerging economies now account for over half the world economy, continued sub-par economic performance for several of the major EMEs is likely to mean that global growth remains only moderate in the near term,” it said.
Across the G7 group of leading industrialized nations, the OECD expects gross domestic product (GDP) growth to expand from 2 percent at the end of 2013, to 2.2 percent in the first quarter of 2014, before falling back to 2 percent in the second three months of the year.

via SOURCE

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza