Waning growth in emerging market economies is “of particular concern” to the financial stability of the eurozone, the European Central Bank has warned.
The ECB said in the latest edition of its twice-yearly Financial Stability Review that vulnerabilities stemming from emerging markets had increased over the past six months and China was still “of particular concern”, despite a decline in volatility since the summer.
The rout in Chinese stock markets over the summer triggered a sharp drop in equity indices across the world driven by concerns over a slowdown in China. The tailspin in global markets was one factor behind the pledge by eurozone policymakers to consider injecting more stimulus into the bloc’s economy from December 3.