The storm in emerging markets spreads West

So much for the developed and developing worlds ‘decoupling’. Just as emerging markets couldn’t escape the credit crunch in 2008, so emerging-market angst is now hitting Western stocks. But how worried should investors really be?

The last time there was an emerging-markets crisis, in the late 1990s, developing economies were only worth around 20% of global GDP. Now they comprise 40%.

It won’t be clear for some time how much impact the market turbulence will have on emerging growth, as Capital Economics points out. But with the turmoil so far concentrated in a few trouble spots and Asia looking reasonably [...]

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