Uncertainty remains in US, Europe: Standard & Poor
Standard & Poor has come out with its view on the emerging markets as uncertainty remains in the US and Europe.
November 17, 2011 / 12:39 IST
Standard & Poor has come out with its view on the emerging markets as uncertainty remains in the US and Europe.
Economic and financial uncertainty continues to characterize the state of the global economy. The slowdown that began in 2008 persists in some form or another in many parts of the world, albeit to varying degrees, said an article published by Standard & Poor's Global Fixed Income Research.In the U.S., conditions in the housing and labor markets remain weak, and Europe's sovereign debt crisis appears to be spreading. The emerging markets, which are largely export driven, are also feeling the pinch as demand from trading partners in developed regions remains weak. Nonetheless, the recovery in the emerging markets appears to be stronger than the recovery in developed markets, according to the article, titled "Emerging Markets: A Viable Alternative Amid The Global Slowdown."All countries felt the effects of the global economic slowdown that began in 2008, but not all were affected to the same degree. The U.S. and Europe were at the heart of the downturn. "The emerging markets experienced a significant, yet slightly less dramatic, slowdown as well," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research. "The U.S. and Europe were significant trading partners for emerging economies, and lackluster demand from these regions had some negative effects on emerging market economic growth."However, many years of strong growth in the emerging markets and increased intraregional trade have created a much larger domestic and regional base. "This has kept demand for goods and services in the emerging markets relatively strong, offsetting slower trade with developed regions," said Ms. Vazza. "Moreover, countries in the emerging markets, in general, have improved their financial positions." Abundant cash reserves and stronger balance sheets aid in recovery and serve as important buffers during challenging times.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
