A recent article in the UK's
That may be true – or it may depend on the ferocity of the storm. Speaking to reporters on the sidelines of Morgan Stanley's recent Asia Pacific summit, the bank's Asia chairman and former chief economist Stephen Roach said he thought it “more likely than not” that the US would enter recession in 2008 as troubles in the housing market triggered a consumer slump. Some have speculated that the world's fastest-growing economies, with their big domestic markets, might have developed immunity to a US recession. Roach isn't one of them. “I think it's ludicrous to think that Asia would be an oasis in a context of global disturbance,” he reportedly said.
For emerging markets, as for developed markets too, the short-term outlook is uncertain. But one thing is for sure: as we discuss in a series of features starting on page 60 of this issue, emerging markets private equity investors have much to be optimistic about. Strong growth rates, burgeoning middle classes and booming stock markets are among the reasons why investors committed $21.5 billion to 107 emerging markets-focused funds in the first half of 2007, according to the Emerging Markets Private Equity Association in Washington, DC. The end-of-year total is expected to represent a new record.
Even if emerging markets do get swept up in an economic whirlwind not of their own making, it's unlikely that private equity investors would retreat
Enjoy the issue,