[POLICY BRIEF] THE FINANCING OF EMERGING ECONOMIES IN 2022 – 2023

Emerging economies will be confronted in 2022 to a very demanding global environment and numerous policy challenges. For them, like for advanced Economies, the COVID-19 crisis has left a legacy of increased public debt and reduced fiscal space. Just as advanced economies, they will face inflation pressures coming from supply bottlenecks, as well as rising commodity and energy price. All these factors will be amplified by the consequences of the Ukraine invasion and subsequent sanctions imposed by western powers on Russia. In addition, they may face specific headwinds and constraints on capital flows, debt, and exchange rate management.

This Policy Brief presents some perspectives and thoughts. It is by no means a comprehensive analysis. Rather, it discusses possible challenges and trends in the current financial and geopolitical environment as well as possible policy responses. It is primarily, but not exclusively focused on low-income countries.

Download the Policy Brief here: