Emerging Economy Growth Excluding China Trails Developed Nations
- Citigroup cites weak trade, high debt for second-quarter slide
- Bank cuts 2016 global growth forecast fifth time this year
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Economic expansion in most emerging markets lagged behind developed nations for the first time in 14 years in the second quarter as slowing world trade, heavy debt burdens and a pending increase in U.S. interest rates sapped growth, according to Citigroup Inc.
Developing economies, excluding China, expanded 1.8 percent in the three months ended in June, compared with 2 percent for advanced nations, Citigroup said in a research note. The slower growth was a reversal of the trend since 2001 that saw emerging-market growth exceeding developed markets by 2.6 percentage points on average.