Economics Weekly by Lloyds TSB

Following the onset of the global credit crisis two years ago, it was generally believed that developing economies, particularly in Asia, would be better placed to weather the storm than some of the more advanced economies, such as the US and UK.

Developing economies lead the way out of recession

Following the onset of the global credit crisis two years ago, it was generally believed that developing economies, particularly in Asia, would be better placed to weather the storm than some of the more advanced economies, such as the US and UK. It was reasoned that the export-orientated, savings-rich countries, with the support of China, faced little prospect of an external payments crisis and were one step removed from the bursting of the debt bubble created in western economies. De-coupling was the buzzword at that time. Yet, over the subsequent twelve to eighteen months, expectations that the developing world could distance itself from the global credit crisis faded amid a collapse in world trade.

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