Emerging markets growth outlook remains bleak – Deutsche Bank

Research Team at Deutsche Bank, suggests that the emerging markets growth outlook remains generally bleak, with low commodity prices hurting producers, China’s slowdown weighing especially in Asia, and weak external demand from the US and Europe.

Key Quotes

“We see a modest pick-up in growth, almost exclusively explained by a milder recession in Russia.

Pressures on EM are intensifying and deleveraging has a long way to go, but we do not expect 1980-90s-style EM crises, given better external resilience than in the past: foreign exchange reserves are higher, debt is lower, current accounts are stronger, and currencies are cheaper and more flexible.”