A Decade after the 2009 Global Recession : Macroeconomic Developments
Emerging markets and developing economies (EMDEs) weathered the 2009 global recession relatively well. However, the impact of the global recession varied across economies. EMDEs with stronger pre-crisis fundamentals -- such as large foreign exchang...
| Main Authors: | , |
|---|---|
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/634491592857799290/A-Decade-after-the-2009-Global-Recession-Macroeconomic-Developments http://hdl.handle.net/10986/33985 |
| Summary: | Emerging markets and developing
economies (EMDEs) weathered the 2009 global recession
relatively well. However, the impact of the global recession
varied across economies. EMDEs with stronger pre-crisis
fundamentals -- such as large foreign exchange reserves,
sound fiscal positions, and low inflation -- suffered milder
growth slowdowns, in part due to their greater capacity to
engage in monetary and fiscal stimulus. Low-income countries
were also resilient, as foreign aid and inflows of
remittances remained relatively stable. In contrast, EMDEs
that were heavily dependent on short-term capital flows --
such as portfolio investment and cross -- border bank
lending—fared less well, especially those in Europe and
Central Asia. A key lesson for EMDEs is the need to
strengthen macroeconomic frameworks and create policy space
to prepare for future global downturns. |
|---|