Emerging markets are key engines of global growth, and they have made great strides in improving their economic-policy frameworks and enhancing credibility. But as IMF Managing Director Kristalina Georgieva notes in a joint op-ed with Saudi Finance Minister Mohammad Al-Jadaan, “this is no time for complacency.”
The good news is that emerging markets have held up well after recent global shocks. “While supportive external conditions have played a part in their impressive resilience, so have the policies and institutions underpinning it,” according to Georgieva and Al-Jadaan.
At the same time, GDP in emerging markets and developing economies is on a slower growth path than before the pandemic. This makes it even more difficult to close the income gap with advanced economies.
Speaking at the the AlUla Conference for Emerging Market Economies on February 8-9, Georgieva highlighted two priorities: fostering private sector-led growth—by cutting red tape, deepening financial markets, and improving governance—as well as stepping up trade integration. “In a world of shifting alliances and trade patterns, there are new opportunities for cooperation at the regional and cross-regional levels,” she said.
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