No Good News for Developing Countries

Business Spectator - The end of deflationary trade

Hungary, Serbia, Belarus, Pakistan and Ukraine are now facing the most excruciating choice: default on their debts or ask the IMF for money at the expense of crushing their economies under the weight of a massive increase in interest rates.

The outlook is not good for the countries needing help from IMF.

That process of importing deflation (or, more precisely, disinflation) from developing nations – especially China and India – relied on trade: raw materials in; finished goods out.
The fall in freight rates for both dry bulk carriers and container ships is telling us that it’s over.

Adding to the list of news about the possible shape the world will take during and after the crisis.