Emerging markets are not immune from the deepening debt crisis in the developed world, but most are well-placed to deal with the fallout. China faces a difficult structural transition of its own but, along with the rest of emerging Asia, has policy options to respond to a downturn in the West. We expect Latin American economies to slow by more than most anticipate in 2012, but they should rebound in 2013. The exception is Eastern Europe, where a number of countries are at risk of sliding into recession.