The outlook for emerging markets | Stumble or fall? | The Economist

The outlook for emerging markets | Stumble or fall? | The Economist

This is to support the earlier note on the trouble in emerging economies. It seems that Eastern European countries will be particularly hard hit by the global recession. Difficulties to repay EUR and USD denominated loans with depreciating domestic currencies will pose a significant threat to EU banks, particularly Austrian banks. Exposure of Austrian banks to Eastern Europe is 85% of its GDP and 4 times the exposure of German banks.