ISAPF - Can The Coronavirus Crisis Bring Positive Change To Emerging Markets?
By Adriaan du Toit
Emerging markets ((EM)) are at a crossroads. The impact of COVID-19 aggravates pre-existing challenges. But it also enables those EM economies that respond effectively to create better conditions for the future.
EM authorities face critical policy decisions. Certain growth-dampening secular trends under way before the COVID-19 crisis are now set to accelerate. Faster deglobalization and even greater debt accumulation seem inevitable. These global trends might be unstoppable, but the speed and quality of EM responses will, in our view, be critical in shaping the medium-term trajectory of the asset class and