Washington, D.C., February 10, 2015 - Emerging market GDP growth weakened further from its subdued pace of 3.6 percent in Q4 according to the January update of the IIF's EM Coincident Indicator.' The IIF reported that the EMCI declined in January to 3.2 percent.
"Signs that growth is continuing to slow in emerging markets is definitely a worry," said Charles Collyns, Chief Economist at the IIF.' "Momentum seems to be picking up in advanced economies, but the benefits have yet to spread very far."
The IIF reported that financial markets remained the biggest headwind to EM growth, as commodity and equity prices, along with currencies, continued to weaken. Trade data for December/January continued a decline in growth on a 3m/3m basis. In contrast, Industrial Production weakened only marginally, as sharp declines in Russia and Brazil were offset by increases elsewhere.' Meanwhile, exports brightened in South Africa, but dimmed in China. The weakening in the EMCI was evident across all regions, but most notably in Latin America.
The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. IIF members include commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks. For more information visit www.iif.com.'