Growth subdued, but stabilising

Emerging market GDP appears to have grown by around 4.5% y/y in Q3 – broadly the same rate as in Q2, but well down on the 8% y/y growth rates seen in 2010. At a regional level, Emerging Asia has continued to outperform and, with Chinese growth showing signs of stabilising, that should continue to be the case. Meanwhile, Latin America has maintained steady, albeit slower, rates of growth as stimulus measures have begun to take effect. By contrast, output seems to be contracting in Emerging Europe on a seasonally-adjusted quarter-on-quarter basis as the region has been dragged down by the recession in the neighbouring euro-zone.