Recent reports on emerging markets have emphasized their relative economic slowdown (especially during 2012Q2-2013Q3). Much of the
recent slowdown is cyclical and long-term growth prospects are still very
attractive. From an economic standpoint, it is worth emphasizing that much of
the emerging world is still quite far from the technological frontier and decades
of rapid catch-up growth is still feasible. In other words, there are many
low-hanging fruits waiting to be plucked in emerging markets. However, the pace
of convergence is likely to vary across regions (Asia and Africa will likely grow
faster than Latin America).
Kemal Dervis provides an excellent analysis of ‘catch-up
growth’ here: