Are Emerging Market Economies in Danger of Overheating?

July 9, 2011 in Daily Bulletin

The Economist took a look at which emerging market economies appeared to be overheating. The countries with the greatest risk of out of control growth were:

  • Argentina
  • Brazil
  • Hong Kong
  • India
  • Indonesia
  • Turkey
  • Vietnam

China which analysts have focused on over the past year or so as an economy in danger of crashing after decades of stunning growth does remarkably well in The Economist’s rankings. Concerns about the strength of the Chinese economy seem misplaced.

The ranking is composed of six measures that include: inflation, spare production capacity, unemployment, credit expansion, real interest rate and external balance. To read more about how other emerging market economies ranked in the index, and how the ranking was composed click here.

Source: The Economist