04-02-2014, 04:37 PM
After the "Fragile Five", there are another five, thus the Fragile 5+5. News will never short of new term...
Emerging markets face fragile future
The financial turmoil that hit emerging-market economies last year, following the United States Federal Reserve’s “taper tantrum” over its quantitative-easing (QE) policy, has returned with a vengeance.
This time, the trigger was a confluence of several events: A currency crisis in Argentina, where the authorities stopped intervening in the forex markets to prevent the loss of foreign reserves; weaker economic data from China; and persistent political uncertainty and unrest in Turkey, Ukraine and Thailand.
This mini perfect storm in emerging markets was soon transmitted, via international investors’ risk aversion, to advanced economies’ stock markets. But the immediate trigger for these pressures should not be confused with their deeper causes: Many emerging markets are in real trouble.
THE FRAGILE 5+5
The list includes India, Indonesia, Brazil, Turkey, and South Africa — dubbed the “Fragile Five”, because they all have twin fiscal and current-account deficits, falling growth rates, above-target inflation and political uncertainty from upcoming legislative and/or presidential elections this year.
But five other significant countries — Argentina, Venezuela, Ukraine, Hungary and Thailand — are also vulnerable. Political and/or electoral risk can be found in all of them, loose fiscal policy in many of them and rising external imbalances and sovereign risk in some of them.
...
http://www.todayonline.com/business/emer...ile-future
Emerging markets face fragile future
The financial turmoil that hit emerging-market economies last year, following the United States Federal Reserve’s “taper tantrum” over its quantitative-easing (QE) policy, has returned with a vengeance.
This time, the trigger was a confluence of several events: A currency crisis in Argentina, where the authorities stopped intervening in the forex markets to prevent the loss of foreign reserves; weaker economic data from China; and persistent political uncertainty and unrest in Turkey, Ukraine and Thailand.
This mini perfect storm in emerging markets was soon transmitted, via international investors’ risk aversion, to advanced economies’ stock markets. But the immediate trigger for these pressures should not be confused with their deeper causes: Many emerging markets are in real trouble.
THE FRAGILE 5+5
The list includes India, Indonesia, Brazil, Turkey, and South Africa — dubbed the “Fragile Five”, because they all have twin fiscal and current-account deficits, falling growth rates, above-target inflation and political uncertainty from upcoming legislative and/or presidential elections this year.
But five other significant countries — Argentina, Venezuela, Ukraine, Hungary and Thailand — are also vulnerable. Political and/or electoral risk can be found in all of them, loose fiscal policy in many of them and rising external imbalances and sovereign risk in some of them.
...
http://www.todayonline.com/business/emer...ile-future