Industrial productions in freefall and no improvement in sight
• Economic data since October have shown a remarkably synchronised deterioration of the indicators for the manufacturing sector globally - and to date there has been no sign of any improvement.
• The sharp drop in economic activity in the US and Euroland is now having a massively negative impact on Emerging Markets - particularly in industrialised exporting countries in Asia; however, the Central and Eastern European economies are the hardest hit.
and no improvement in sight
• The sharp deterioration of the situation in the CEE manufacturing sector has increased the expectation of aggressive monetary easing across the region and this has sent the CEE currencies sharply weaker.
• The Latin American economies are significantly less exposed to the global manufacturing sectors but the global slowdown is having a negative impact in the commodity-exporting LATAM economies through the sharp drop in commodity prices we have seen.
