Managing growth transitions 2014 will be a watershed year for the global economy and financial markets as investors continue to keep an eye on the Fed's untested dialing-back of monetary stimulus. We expect the monetary exit to be orderly as long as the withdrawal is well timed, carefully calibrated and clearly communicated. Amid the tail risks and event risks in the US, we believe that the emerging economies will successfully manage their growth transitions in an environment of tightened liquidity or capital inflows and rising interest rates.
The domestic drivers, aided by a moderate recovery in exports, are expected to support the uneven growth momentum in emerging economies.
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