As economies throughout the post-2008 developed world slumped, emerging markets proved resilient. But now Europe’s sovereign-debt crisis is threatening to derail these countries' export-led growth, while credit rationing by distressed banks is fueling a trade-finance downturn, hindering the flow of goods in and out of poor countries. Will developing countries weather the storm?
As economies throughout the post-2008 developed world slumped, emerging markets proved resilient. But now Europe’s sovereign-debt crisis is threatening to derail these countries' export-led growth, while credit rationing by distressed banks is fueling a trade-finance downturn, hindering the flow of goods in and out of poor countries. Will developing countries weather the storm?