Emerging markets aren’t yet sneezing enough for the rest of the world to catch a cold.
That’s the diagnosis of economists from Deutsche Bank AG to Nomura International Plc after the stocks of developing nations suffered their worst start to a year in five, raising concerns they are turning from the driver of global growth to a drag.
The optimistic take is the pain will be limited to a few unbalanced economies — including Turkey and Argentina — with little heft abroad, and developed countries now have domestic sources of growth and support from central banks. The risk is that slowdowns and sell-offs deepen in bigger economies, such as China, infecting the financial markets of industrial nations and depriving them of demand for exports and commodities.
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