Global economy faces most hard situation

WASHINGTON - A group of developing countries have warned that the ongoing global financial crisis could dampen growth prospects in the developing world.

“Many emerging markets and developing economies are not immune to the spillovers of the ongoing global crisis, with some countries more affected than others,” the group of 24 countries (G-24) from Latin America, Asia and Africa said in a communique following their meeting.

They expressed concern about financial contagion spreading to several emerging market economies in the form of reversals in capital inflows, increased funding costs, and shifts in investor sentiment unrelated to fundamentals.