Wednesday 5 March 2008

The influence of the American crisis in emerging countries:

For a long period of time, the emerging countries were very dependent of the central economies. In that time, a crisis in the United States economy would represent for sure at least a discomfort for those countries.

A recession in a big country, like U.S.A. or Japan for example, used to affect directly the production of emerging countries. For many years, emerging countries just produced outputs that they could sell and exports for other places, because their economies weren’t strong enough to keep its health just with the internal market.

Although the central countries still have important influence in the emerging economies, the recent U.S. subprimes crisis showed the world that emerging economies now-a- days can keep growing alone. For many specialists, the reasons for this are two facts.link FT

1) Emerging Markets are more structured today than years ago. So today, the financial fundamentals and their own infrastructure are improved in a way that countries can grow by their selves, not stimulated just for others anymore.

2) They have new trade’s partners. The amazing growth presented by the two most populated countries in the world, China and India, guarantee to the emerging counties some demand even in times of crisis in U.S. or Europe.

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