Global economic growth is expected to slow in 2006, but the slowdown in the US, European, and Japanese markets should not derail development in emerging countries.
This is the assessment of Otaviano Canuto, executive director of the World Bank International Bank for Reconstruction and Development, at a seminar, "Prospects for the Brazilian and Global Economy in 2006," in Rio de Janeiro, Brazil According to Canuto, the emerging markets have changed for the better, and do not face great risks of crisis or recession. "The situation in the emerging markets will not be affected by a possible mild setback in the global economy. No country is in bad straits, and this goes for Brazil," he added.
Canuto observed that 2006 began under a cloud of anxiety cast by disappointing growth in the United States in the final quarter of last year. Nevertheless,the effects did not spill over into the European and Asian economies in January.