Lower outside demand and structural bottlenecks explain EM slowdown, IMF paper finds

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The International Monetary Fund

Lower trading partner demand and the withdrawal of the fiscal stimulus introduced during the financial crisis were key external factors in explaining the economic slowdown in emerging markets between 2011 and 2013, an IMF working paper finds.

Growth surprises and synchronised slowdowns in emerging markets – an empirical investigation, by Ghada Fayad and Roberto Perrelli, adds that "idiosyncratic factors", such as structural bottlenecks with the potential to impair growth in a more lasting

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