India Among The ‘Fragile Five’ Emerging Markets

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NEW DELHI – Emerging marketslike India, South Africa andBrazil are being described as‘Fragile Five’ by a global investmentbanker for their overdependence on skittish foreigninvestment to finance theirgrowth ambitions.The new catchphrase ‘FragileFive’ is being used to describemarkets that have witnessedeconomic turmoil in recentyears, a rival to the term BRICsthat had highlighted the longtermgrowth potential of Brazil,India, South Africa, Russia andChina.A report in the New York Timessaid the term had been coinedby a research analyst at MorganStanley which identifies Turkey,Brazil, India, South Africa andIndonesia as “economies thathave become too dependent onskittish foreign investment tofinance their growth ambitions.”It said that the term has caughton as it highlights the “strainsthat occur when countries placetoo much emphasis on stokingfast rate of economic growth”.The term is also raising pressingquestions about not just thestate of the BRICS economybut about emerging markets as ithas become an easy forinvestors to voice fears on abroader emerging markets rout,propelled by runs on theTurkish lira, Brazilian real andSouth African rand.