Why EMs have little room for recovery

Emerging markets have had a rough time recently. Over the past two and a half years, their economic performance has stayed behind that of developed markets.

The debt crisis has led to meaningful change in the US and Europe. In the US, the banking system has been cleaned up and the economy appears to be moving again. Lower energy prices and years of cost cuts are pushing the American industry forward again. As to Europe, much has changed in Greece, Spain, Portugal and Ireland, where the crisis forced a sharp drop in wages, which is clearly leading to more competitive power. The first cautious signs of recovery are slowly becoming visible. In the eurozone as a whole, clear steps have been taken towards more policy coordination and overarching ...