Emerging markets must prepare for 'bouts of economic turbulence': IMF
The International Monetary Fund (IMF) has advised emerging market economies to prepare for potential bouts of economic turbulence this year due to the US Federal Reserve’s policy tightening and ongoing coronavirus pandemic.
While the global economic recovery will continue in 2022, faster rate increases could rattle the financial markets around the world and lead to capital outflows and currency depreciation, the IMF said in a blog published on Monday.
It noted that the rapid spread of Omicron variant has posed additional concerns, and countries that have high public and private debt are likely to experience “more severe” impact.
