Skip to main content

How reliant are EM governments on high commodity prices?

A sharp decline in commodity prices would cause the public finances to deteriorate in many emerging market countries, with the loss of revenues greatest in the Middle East and parts of Africa. However, low levels of public debt mean that there is little immediate threat to fiscal sustainability in these countries. By contrast, a decline in commodity prices would pose a bigger problem for the authorities in Mexico, Russia and – most obviously – Venezuela.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.