## figure1-13

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**Canonical URL:** [figure1-13](https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-13.pdf)

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### Overview
- Figure 1.13. Transmission of External Risks to Emerging Market Economies

### External risk factors
- Lower output growth and commodity prices
- Lower global trade
- Higher global risk premiums
- Rising protectionism
- Unproductive fiscal expansion leads to faster rise in U.S. yields

### Transmission channels and intermediate effects
- Rising global risk premiums
- External liabilities become more burdensome
- Corporate leverage and FX mismatches rise

### Domestic effects on demand and balance sheets
- Negative demand effects and lower external revenues
- Lower debt-servicing capacity, higher NPLs

### Consequences for emerging market bank and financial stability risks
- Emerging Market Bank and Financial Stability Risks

### Notes
- FX = foreign exchange; NPLs = nonperforming loans.

*Source: IMF staff.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-13.pdf_