Publication

The economic downturn and outright recession in OECD countries can be expected to depress growth in the developing world, through reduced financial flows — investment in stock markets, banking capital, foreign direct investment and remittances, and through lower demand in markets pushing down commodity prices and reducing tourism receipts. Marked differences between middle and low income countries are likely, with further differentiation depending on the trade balance in oil and foods. The experiences of Indonesia, Mexico and Zambia when facing economic recessions in the 1990s are reviewed.