The IMF’s recently published biannual Fiscal Monitor report — arguably the most comprehensive source of standardized global fiscal data available — highlights how fiscal policies can protect emerging market economies from the cost of living crisis, while also preserving the sustainability of public finances. maintained in the medium term. finances.
Ehsan Khoman, Head of Commodities, ESG and Emerging Markets Research (EMEA) reviews the IMF’s key conclusions and provides insight into why he believes the next major imbalance in the emerging markets complex will be public finances. Ehsan believes those with large budget deficits, government debt and weaker balance sheets will be an important differentiator for markets to consider in the coming months.
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