Updated August 11, 2013, 11:54 p.m. ET
Emerging World Loses Growth Lead
Global-Trade Decline Dulls Developing Markets as Outlook Brightens in More-Established Economies
By ALEX FRANGOS in Hong Kong, SUDEEP REDDYin Washington, and JOHN LYONSin São Paulo
Momentum in the global economy is shifting to the developed world, away from the emerging economies that had led growth since the financial crisis.
The turnabout may reshape world capital flows and upend forecasts that corporations had built around ebullient hopes for emerging markets.
At the same time, the emerging world's big guns—such as Brazil, Russia, India and China—are ailing or ratcheting back from their stellar performance of recent years. The International Monetary Fund forecasts the global economy to expand 3.3% this year, compared with 3.2% in 2012 and 4% in 2011.
The shift could create new challenges for companies with big global operations. Some are already feeling the pinch.