China & Emerging Markets: China is about to rebalance. How will EM be affected?
August 02, 2012 09:00 AM
Citi Global Perspectives & Solutions (Citi GPS) is Citi's latest thought leadership initiative through which we are delivering insights and viewpoints on compelling issues and structural thematic trends in the global economy. In the most recent Citi GPS report: "CHINA & EMERGING MARKETS: China is about to rebalance. How will EM be affected?", Citi Chief Emerging Market Economist, David Lubin, delves into China's investment-driven growth model and the decisive impact it has had on emerging economies in the past 10 years.
David's analysis suggests that in light of China's rebalancing of decreased investment spending and increased consumer spending, Asia is the best-placed region to take advantage of a new pattern of Chinese growth, while South America could face a painful adjustment process given the appreciation of real exchange rates that the region has seen in its membership of the 'China-commodities complex.'