We also tended to hear a great deal about the so-called “decoupling” thesis. This was the idea that the emerging economies would continue their recent strong growth despite the economic downturn in Europe and the United States. Following the collapse of Lehman Brothers in mid-September we now know that these scenarios were too optimistic.
It has become clear that no part of the world will be immune to the current crisis, and the IMF expects that this will be the first time in fifty years that all of the advanced economies will experience a synchronized recession. This cannot fail to have an impact on the rest of the global economy.