From Citi:
Emerging economies’ growth prospects look damaged in several respects. The central fact facing EM is the negative external shock that results from weak global trade growth and the collapse of Chinese import growth. This brings to an irreversible end the period of rapid, investment-led Chinese growth and strong global trade growth which had supplied EM with a once-in-a-generation positive external shock during the years between 2002 and 2013.
Fiscal policy is tight across EM because private capital markets seem quite intolerant of rising public debt levels in EM (note Brazil’s fate). Even in countries that are actively trying to loosen fiscal policy — Indonesia, or Korea, for example — the loosening is quite modest.
