August 12

Analysis: COVID-19 Response in Emerging Market Economies: Conventional Policies and Beyond

By Martin MühleisenTryggvi Gudmundsson, and Hélène Poirson Ward

The economic impact of the COVID-19 pandemic on emerging market economies far exceeded that of the global financial crisis. Unlike previous crises, the response has been decisive just like in advanced economies. Yet, conventional policies are reaching their limit and unorthodox policies are not without risks.

A pandemic still unfolding

COVID-19 is still to play out fully in the emerging market universe (see chart for country list), posing risks to both people and economies. While countries such as China, Uruguay, and Vietnam have managed to contain the virus, others such as Brazil, India, and South Africa continue to grapple with a rise in infections.

Photo courtesy of sumanley.

Source: IMF Blog (link opens in a new window)

Coronavirus, Finance