Otaviano Canuto, Catiana García-Kilroy, Anderson Caputo Silva
Almost three years after the crisis, the new reality reflects the consolidation of a progressive tectonic plate shift initiated a decade ago. Emerging economies (EMEs) are now, with no doubt, at the centre stage of growth and stability in the world economy. This is already having a radical impact on the investment landscape and can be expected to continue. However, EMEs have no room for complacency, as there are two critical factors that can be expected to threaten their new position. Growth without structural reforms is concealing problems that can be seriously destabilising in the future.
Globalisation has created interdependencies between EMEs and advanced economies (AEs) that are here to stay, and will continue to count heavily on the economic outcomes of both groups. Understanding and taking action on those two factors as they develop will be essential for policy makers and investors. Differentiation among EMEs in their potential for continuous growth and stability will depend on those actions.
Downloadable here: Foreword by Otaviano Canuto, Catiana García-Kilroy and Anderson Caputo Silva. Euromoney Emerging Markets Handbook 2012. www.euromoney-yearbooks.com/handbooks, October 2011