Economist Podcasts Submerging markets: developing economies and covid-19
Apr 30, 2020
Simon Cox, The Economist's Emerging Markets Editor, discusses the profound impact of COVID-19 on developing economies. He highlights how the pandemic exacerbates existing inequalities, deepening crises in countries like Lebanon, Zambia, and Argentina. Their struggles with debt and declining revenues are contrasted with wealthier nations' responses. The conversation also touches on the emotional toll on dementia patients and caregivers during isolation, and concludes with innovative language learning tips that emerged during lockdown.
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Emerging Market Debt Vulnerability
- Emerging markets face unique debt challenges due to pandemic-related economic vulnerability.
- Their reliance on foreign currency debt makes them susceptible to exchange rate fluctuations, increasing their debt burden.
Economic Vulnerability of Emerging Markets
- Emerging economies are economically vulnerable to the pandemic due to decreased export earnings and tourism revenue.
- Stringent lockdowns further exacerbate the economic damage and increase their need for debt.
Varying Debt Loads in Emerging Markets
- Emerging markets have varying debt loads and sources, impacting their pandemic response.
- Some have high government debt, others high corporate debt, with debts held internally or externally.