REUTERS / Ueslei Marcelino
A new report by Jay Bryson and Mackenzie Miller of Wells Fargo looks at developing countries and their potential exposure to a financial crisis.
Bryson and Miller rank that 28 largest developing countries based on economic indicators linked to financial crises: “F.Foreign exchange reserves, the real exchange rate, credit growth, GDP growth and the current account. That is, countries with low foreign exchange reserves, an estimated exchange rate, rapid credit and GDP growth, and current account deficits tend to have the highest probabilities of financial crises. “
Bryson and Miller stress that crises are not necessarily inevitable for these countries, but “The developments in these economies can be observed in the coming years. “
“IIt appears that the potential economic growth rate in developing countries has been downshifted from the very robust rate reached before the global financial crisis, “they write.
We selected the 12 countries with the highest (most vulnerable) overall score.