The report discusses the recent slowing in China and emerging markets (EM) and its impact on global growth. It argues that while EM growth has been slowing for the last five years, developed markets (DM) growth has picked up, keeping global growth steady. The report highlights that conventional purchasing power parity (PPP) exchange rate measures overstate the size of EM in the global economy by $35 trillion. It suggests that global growth has been rising when measured using market exchange rate weights. The report also discusses the normalization of EM growth and the expected pickup in DM growth, with global growth expected to accelerate above trend rates in 2016 when measured at market weights.
documents/vol00010-efta01475183-pdf.pdf
{"title":"The Arithmetic of EM and Global Growth: The $35 Trillion Myth","key_people":["Binky Chadha","Rajat Dua","Parag Thatte"],"document_date":"11 September 2015","document_type":"other","key_locations":["China","United States","Eurozone"],"key_organizations":["Deutsche Bank","IMF"]}