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The EM debt bubble may already have burst

Most emerging markets have had credit booms in the last five years, and history suggests that up to two-thirds of such booms end in growth slowdowns or financial crises. Evidence of slowdowns is already visible for several EM, and the financial shocks that have hit EM over the last year risk spreading this problem more widely. Debt-related problems could cut aggregate EM growth by up to one percentage point per year over the next few years.

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