Story perspectives

IMF: Emerging Markets Thrive Amid Global Shocks

10/6/2025

Summary

Story summary

Emerging market economies show resilience to shocks, aided by credible inflation targeting, independent central banks, and strong fiscal policy, per the International Monetary Fund (IMF).
IMF notes reforms yield higher growth and lower inflation than prior crises.
Local currency bond markets have deepened, reducing reliance on foreign investors. Frontier markets still face higher financing costs and struggle to attract investment.

History

Historical Context

In 2000, the International Monetary Fund (IMF) highlighted the need for credible inflation targeting and independent central banks to ensure economic stability. Following the 1997 Asian financial crisis, countries like South Korea adopted these reforms, achieving an average GDP growth of 5% and significantly lowering inflation. Today, emerging markets continue to implement similar strategies, while frontier markets still face high financing costs.

1 of 2

Story summary

Emerging market economies show resilience to shocks, aided by credible inflation targeting, independent central banks, and strong fiscal policy, per the International Monetary Fund (IMF).
IMF notes reforms yield higher growth and lower inflation than prior crises.
Local currency bond markets have deepened, reducing reliance on foreign investors. Frontier markets still face higher financing costs and struggle to attract investment.

1 / 2