Emerging markets external positions have improved throughout the pandemic: The Global Markets Research Podcast

Whilst the pandemic is having a differentiating impact across EMs, the external positions – quantified as the absolute sum of current account surpluses and deficits – for most EMs has strengthened.

Ehsan Khoman, Head of Emerging Markets Research (EMEA), examines the shifting consumption patterns and trade that have been the core drivers of the improvements, accentuated by the IMF’s 2021 External Sector Report. The robust FX reserves of major EMs – further bolstered by the IMF’s recent USD650bn SDR allocations – also signals the strong positions of the majority of EM balance sheets.

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