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EM savings problems not just a China story

Some of the structural problems in China’s economy have their roots in its excessively high savings rate (and underconsumption). For many other EMs, savings rates are also a problem but for the opposite reason – they’re too low. This is particularly so in parts of Latin America as well as South Africa. That depresses investment and helps to explain why long-run growth prospects in those regions are weak.

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