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Emerging Markets Warned of Capital Drought as Fed Nears Liftoff | Tony Seruga
Dec
08

Emerging Markets Warned of Capital Drought as Fed Nears Liftoff

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  • World Bank says financial shock could cause capital ‘stop’
  • Slowdown threatens Kim’s goal of eradicating global poverty

A sudden capital drought in emerging markets could undermine the fragile global expansion, World Bank economists said in a report Tuesday that questions whether the international lender’s main poverty-reduction target is achievable given the bleaker outlook.

Now in its sixth year, the slowdown in developing economies is the broadest since the 1980s, World Bank economists said in a research paper released on Tuesday. While emerging nations are better prepared for shocks than they were in the 1980s and 1990s, the recent “rough patch” could signal a new era of slow growth, according to the Washington-based development bank…

Emerging Markets Warned of Capital Drought as Fed Nears Liftoff

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