Wednesday, February 14, 2018

Market volatility and global interest rates have risen sharply, a challenge for emerging markets dependent on external financing. We scan the emerging market space for where vulnerabilities are greatest, focusing especially on places where current account imbalances are building. Argentina and Turkey have seen rapidly widening current account deficits, with falling currencies playing catch-up to deteriorating fundamentals. We estimate that material overvaluation may still exist in both places.

IIF Authors

Robin Brooks

Robin
Brooks
Managing Director and Chief Economist
@RobinBrooksIIF
rbrooks@iif.com

Jonathan Fortun

Jonathan
Fortun
Associate Economist
@econchart
jfortun@iif.com

Tariq Khan

Tariq
Khan
Research Analyst
+1 202 857 3339
tkhan@iif.com

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