A combination of timely policy support and resilient cross-border banking sector flows appeared to alleviate a collapse in EM credit growth during height of the coronavirus crisis. These forces should continue to buoy credit growth in the coming months, helping to support the fledgling EM recovery. But this may come at the cost of a further misallocation of resources in the likes of China and Turkey.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.