Emerging-market growth slump could be long-lasting and disruptive: World Bank

Cyclical and structural policies 'are needed to improve the investment climate and labour market'


IN A report likely to shock financial markets, the World Bank said on Wednesday that the "golden days" are probably over for the world's emerging economies, and that the sharp growth slowdown they have suffered since 2010 could worsen and even come to a stop.

Its report suggests that the slowdown in emerging economies or "emerging markets" (EMs) could have major negative implications for advanced economies and for the global economy as a whole.

A continued slowdown among the EMs - including the biggest among them, China - could also have a strong impact on portfolio investment strategies, with these markets now accounting for about a quarter of global stock market capitalisation.

EMs form a...

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