Read the text below in order to answer question:
The world's three largest economies are limping. Emerging markets are drifting into financial crisis.
Emerson: Are we sliding into global recession?
Hormats: The risk is growing, but we are not there yet.
Almost every economy on the globe is slowing down.
We haven't seen this kind of sharp, synchronized downturn for years.
E: Is this the dark side of globalization?
You could say that. With the rapid increase in global trade and
investment flows, growth in one country has a greater probability of
contributing to growth in others.
But the reverse is also true. When the world's largest economy experiences a sharp drop, that inevitably drags down others.
There are twin worries now: global recession and financial contagion in
emerging markets. Is this more dangerous than the financial contagion
H: In 1997, a financial crisis in emerging markets led
to recession in those economies. But most were able to export their way
out, because the US and Europe were growing. Now all major economies are
slowing down, as Argentina and Turkey are facing financial crisis. So
yes, this situation is more dangerous for them. Even for the
industrialized countries there is no locomotive. Countries cannot count
on restoring growth by exporting a lot more to one another.
According to the interviewee,