Emerging markets face ‘uphill battle’ against pandemic – IMF staff

EME countries face limited fiscal space and possible solvency crisis, warn researchers

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Emerging markets with debt sustainability concerns are likely to face an “uphill battle” as they continue to respond to the Covid-19 pandemic, three International Monetary Fund staffers argue.

Martin Mühleisen, Tryggvi Gudmundsson, and Hélène Poirson Ward argue in a blog post that emerging markets will find the next phase of the pandemic challenging, and may have to resort to “unorthodox policies”.

“The virus remains present, financial conditions are still fragile, and policy space is lower

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