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320062009Percent changeA d v a n c e d e c o n o m i e s E m e r g i n g a n d d e v e l o p i n g e c o n o m i e s W o r l d6 Both OECD and emerging markets fall – no decoupling 6420246810120 2 4 6 8 10 12A v e r a g e a n n u a l g r o w t h G D P , 2 0 0 6 2 0 0 7 ( % )Annual growth GDP, 2009 (%)I n d i aC h i n aI n d o n e si aS o u t h A f r i caB r a z i lS a u d i A r a b i aA r g e n t i n aR u ssi aT u r ke yK o r e aJ a p a nU S AUKG e r m a n yM e x i coS p a i nI t a l yF r a n ceC a n a d aA u st r a l i aSource: World Development Indicators 2022 and IMF World Economic Outlook Update, January 28, 2022 7 Dramatic fall in Asia’s rapid growth ?China: ? Growth practically ground to a halt in 2022 Q4Annual growth rate in 2022 expected to fall to % from % in 2022 ? Exports plunged % yearonyear in January 2022—the largest drop in almost 13 years ? Imports down 43% yearonyear, partly explained by adjustment in inventory. ?Singapore’s GDP fell at an annualized rate of 17% and South Korea’s at 21% in Q4 2022 ?Industrial production in the 12 months to December, 2022 is down 21% in Japan, 14% in Singapore, 19% in South Korea Source: IMF World Economic Outlook Update, January 28, 2022 8 Exports and capital flows crumble Pr i v a te c a p i ta l fl o w s to e m e r g i n g e c o n o m i e s 2 0 0020040060080010002022 2022 2022 2022(US$, billions, net) E q u it y in v e s t m e n t P r iv a t e C r e d it o r s1 555152535J a n 0 7 A p r 0 7 J u l 0 7 O c t0 7 J a n 0 8 A p r 0 8 J u l 0 8 O c t0 8China Jordan Mexico India Source: National Agencies through Thomson/Datastream. Source: Institute for International Finance: ―Capital Flows To Emerging Market Economies.‖ 01/27/09. Exports (Volumes, Change % 3 mma y/y) Private Net Capital Flows to Emerging Economies 2 0 0020040060080010002022 2022 2022 2022(US$, billions, net) E q u it y in v e s t m e n t P r iv a t e C r e d it o r s9 High trade shares with sharp declines in GDP growth… (current episode) 010203040506070809010010 9 8 7 6 5 4 3 2 1 0Cha nge in GDP Gr ow th R ate [20