Moody’s: Medium-term growth and fiscal challenges pose downside risks for EMs
Moody’s Investors Service offers its outlook on the Emerging Markets (EMs), in light of rising government debts.
Key takeaways
“Effectiveness will be key for emerging markets as debt burdens rise.”
“Debt affordability generally stable, but will deteriorate from already weak levels for some.”
“Expect government debt in emerging market sovereigns to rise by almost 10 percentage points of GDP on average by end of 2021 from 2019 levels.”
“Government debt in brazil, India and south Africa will rise to among the highest levels across the EM19, above 80% of GDP by 2021.”
“Medium-term growth and fiscal challenges pose downside risks for emerging market sovereigns.”
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
