Debt Vulnerabilities in Emerging and Low-Income Economies
- Akihiko Nishio, Hugh Bredenkamp
- Sep 2018
- The World Bank Group (WBG) International Monetary Fund (IMF)
- International
Public debt in Emerging Markets (EMs) has been rising, reaching levels not seen since the 1980s. Debt related risks in some EMs are elevated, with substantial variation among countries. Debt risks in low income developing countries (LIDCs) have risen substantially over recent years. This note contains two sections: i) an analysis of the evolution of public debt vulnerabilities in emerging market and developing economies, flagging key risk factors; and ii) an overview of the IMF-WB multi-pronged approach for helping countries tackle these vulnerabilities. The analysis distinguishes between emerging market economies (EMs) with relatively close links to international capital markets and low income developing countries (LIDCs) where these links are more limited, with official sector creditors playing a greater financing role.
