The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Emerging-market growth hits two-year low, says HSBC

Manufacturing production and exporter orders down; Inflation pressures ease

Emerging-market growth is at its weakest level for two years, according to a leading index, as monetary tightening by central banks to combat inflation has slowed the rate of expansion.

The HSBC emerging-markets index, which uses Purchasing Managers’ Index data, dipped to 54.2 in the second quarter of 2011, down from 55 in the three months before and below the long-run series average of 54.8.

The moderation in economic activity is evident across all regions, led by a weaker increase in manufacturing production and reduced export orders in China, Brazil and Russia.

Action by monetary authorities across the developing world to tackle inflation is working, however, with price pressures down sharply.

Central bank measures have helped deliver the sharpest easing of input cost inflation for two-and-a-half years in these markets, according to HSBC.

“HSBC’s latest emerging-markets index confirms that, after a strong rebound in the immediate aftermath of the global financial crisis, the pace of activity in the emerging markets has faded,” says Stephen King, the bank’s chief economist.

He adds: “In many part of the emerging world, there has been a noticeable reduction in the growth of export orders, consistent with the recent experience of countries in the developed world, suggesting that world trade growth peaked in the first quarter of the year.”

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree