A number of studies focus on emerging markets, investigating the behavior of mutual funds, for a survey see G. Gelos, “International Mutual Funds, Capital Flow Volatility, and Contagion – A Survey,” IMF WP/11/92, 2011; the evidence in the literature suggests that funds tend to avoid opaque markets and assets, and this behavior becomes more pronounced during volatile times, with portfolio rebalancing mechanisms contributing to explain contagion patterns.
The weather-related contraction of the first quarter was followed by a strong rebound in growth in the second quarter, with the strong momentum maintained into the third quarter. The economy is estimated to have grown at a better-than expected 3,9 per cent in the third quarter, with leading indicators such as the PMI pointing to strong growth in the final quarter of the year.