Emerging markets' vulnerability to a reassessment of risk
Emerging markets’ vulnerability to a reassessment of risk Prepared by by Irina Balteanu and Livia Chiṭu Financial conditions in emerging market economies (EMEs) have weathered the COVID-19 crisis well so far, despite an intense but short-lived stress episode at the onset of the pandemic. Financial conditions in EMEs have rebounded strongly since March 2020; they currently stand at levels similar to before the pandemic thanks to lower bond spreads and higher equity prices. Capital flows have also recovered, with market segments typically judged to be riskier by foreign investors, such as ...