Shocks in G20 emerging economies impacting rich-world growth, IMF says

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Domestic shocks in emerging economies in the G20 are increasingly impacting growth in the rich world, according to a report published on Tuesday by the International Monetary Fund. Those countries – ranging from China, the world’s second-largest economy, to default-prone Argentina – have become so embedded in the global economy, particularly via trade and commodity value chains, that they are “no longer simply on the receiving end of global shocks.” “Since 2000, spillovers from domestic shocks in G20 emerging markets – particularly China – have increased and are now comparable in size to those from shocks in advanced economies,” the...