On the backup of growing risk aversion, we saw in 2008 a widespread deterioration of financial assets in emerging markets. As in advanced economies, this was combined with a strong tendency towards the depreciation of domestic currencies against the US dollar.
Thus, some countries had to increase their interest rates (for instance, Indonesia and Hungary) or stop the cutting cycle (for instance, South Africa, Turkey, and most of Latin America). The better scenario suggests that developed economies’ activity would only start picking up slowly by mid-2009.