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Research and Analytics

Emerging Markets

How Rising Interest Rates Could Affect Emerging Markets

By Aminu MusaPosted on Posted in Africa & World EconomyTagged , , , , , , No Comments on How Rising Interest Rates Could Affect Emerging Markets

Emerging and developing economies are viewing rising interest rates with trepidation. Most of them are facing a slower economic recovery than advanced economies because of longer waits for vaccines and limited space for their own fiscal stimulus. Now, capital inflows to emerging markets have shown signs of drying up. The fear is of a repeat of the “taper tantrum” episode of 2013, when indications of an earlier-than-expected tapering of US bond purchases caused a rush of capital outflows from emerging markets.

Bank lending rates and spreads in EMDEs: Evolution, drivers, and policies

By Aminu MusaPosted on Posted in Africa & World EconomyTagged , , , , No Comments on Bank lending rates and spreads in EMDEs: Evolution, drivers, and policies

Banks dominate credit intermediation and savings mobilization in most emerging markets and developing economies (EMDEs). As bank lending interest rates and the lending-deposit interest spreads capture the efficiency with which banks allocate society’s savings to its most productive uses, high lending rates and spreads pose a challenge for policy makers in EMDEs: they can affect monetary policy transmission, hinder private investment and job creation, inhibit financial development and inclusion, and ultimately compromise financial stability.

How COVID-19 will Increase Inequality in Emerging Markets and Developing Economies

By Aminu MusaPosted on Posted in AgenciesTagged , , , , , No Comments on How COVID-19 will Increase Inequality in Emerging Markets and Developing Economies

Despite the pre-pandemic gains in poverty reduction and lifespans, many of the EMDEs have struggled to reduce income inequality. At the same time, they saw persistently high shares of inactive youth (i.e., not in employment, education, or training), wide inequality in education, and large gaps remaining in economic opportunities for women. COVID-19 is expected to make inequality even worse than past crises since measures to contain the pandemic have had disproportionate effects on vulnerable workers and women.

COVID-19 Response in Emerging Market Economies: Conventional Policies and Beyond

By Abubakar AbdulrahmanPosted on Posted in Africa & World EconomyTagged , , , , , No Comments on COVID-19 Response in Emerging Market Economies: Conventional Policies and Beyond

The economic impact of the COVID-19 pandemic on emerging market economies far exceeded that of the global financial crisis. Unlike previous crises, the response has been decisive just like in advanced economies. Yet, conventional policies are reaching their limit and unorthodox policies are not without risks.

COVID-19 Crushes Global Economy but Emerging Markets are in Bigger Troubles

By Ahmed AkinyelePosted on Posted in Africa & World EconomyTagged , , , , , , No Comments on COVID-19 Crushes Global Economy but Emerging Markets are in Bigger Troubles

By 2021, it is of high expectation that the world will return to normalcy, and economies around the world should recover from the adverse effect of coronavirus spread. However, emerging markets may continue to wallow in economic crisis as contemporary issues like weak GDP growth rate, unemployment rate, high debt profile, income inequalities, among others, remain in the picture, most of which have been worsened by the global pandemic effects.

Reopening from the Great Lockdown: Uneven and Uncertain Recovery

By Abdulazeez KurangaPosted on Posted in AgenciesTagged , , , , , , , No Comments on Reopening from the Great Lockdown: Uneven and Uncertain Recovery

Compared to the April World Economic Outlook forecast, the IMF now projects a deeper recession in 2020 and a slower recovery in 2021. Global output is projected to decline by -4.9 percent in 2020, 1.9 percentage points below our April forecast, followed by a partial recovery, with growth at 5.4 percent in 2021.

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