Study: Sri Lanka, Argentina Most Vulnerable as Emerging Economies Face Declining Financial Resilience
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Sri Lanka and Argentina remain very vulnerable amid worsening global financial conditions, according to a study by the Center for Global Development.
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China has suffered a sharp deterioration in financial resilience since pre-COVID times, dropping from a top 10 emerging economy in 2019 to 18th place in 2023.
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Emerging markets overall are now more vulnerable than in 2019 due to multiple shocks like COVID, war in Ukraine, and Fed interest rate hikes.
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Debt sustainability has declined over the last 4 years across emerging markets, with a third now having unsustainable debt ratios.
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Indonesia, Peru and Bulgaria are the most resilient countries among the 37 examined, while Sri Lanka, Argentina, Egypt, Turkey, and El Salvador are most vulnerable.