LOW GROWTH HAMPERS CATCH-UP

Finweek English Edition - - THE WEEK -

The slow­down in growth in emerg­ing mar­kets over the past three years means it will take decades longer for ma­jor emerg­ing economies, in­clud­ing SA, to catch up with US per capita GDP, the World Bank said. The bank said on 7 June that emerg­ing com­mod­ity-ex­porters will grow by only 0.4% this year, com­pared with 3.2% in 2013. In the five years be­fore the 2008 fi­nan­cial cri­sis, emerg­ing mar­kets could ex­pect to take an av­er­age of 42.3 years to catch up with US per capita GDP, it said, but slower av­er­age growth means it would now take 67.7 years to catch up with the US, ft.com re­ported. For fron­tier mar­kets, like Nige­ria, the av­er­age catch-up pe­riod has more than dou­bled from 43.1 years to 109.7 years, ft.com said.

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