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Emerging markets’ post-pandemic fiscal adjustment: The expenditure side By Giancarlo Perasso and Elizabeth Doppelt 1 minute read 27 July 2021 While economies around the globe are now recovering from the worst of the pandemic, all are currently in a weaker fiscal position and have much bigger government debts than they did at the end of 2019. Within the emerging markets (EM) community, participants and policymakers are now turning their attention to debt restructurings and other initiatives to reduce the debt of poor countries. Leaving the merits or shortcomings of these initiatives aside, when looking across the EM universe, we see a divergence in the ability to implement fiscal adjustments that would both reduce a country’s debt burden and provide a sufficient buffer against future shocks. This article demonstrates how government expenditures in particular factor in ....