## Figure 1.14. Emerging Markets: Key Risks and Vulnerabilities

## Source details

**Canonical URL:** [Figure 1.14. Emerging Markets: Key Risks and Vulnerabilities](https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-14.pdf)

## Other formats

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### Buffers
- Sound policy frameworks
- Foreign exchange reserves
- Fiscal buffers
- Deep and liquid local markets
- Strong local investor base

### Global and market risks
- Faster monetary policy normalization in advanced economies
  - Strong U.S. dollar
  - Rising interest rates

### Political risks
- Trade tensions
- Policy uncertainty

### Contagion channels and vulnerabilities
- High leverage
- Large external financing needs
- Short-term foreign currency debt
- Flighty investors
- Trade exposures

*Source: IMF staff.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/oct/ch1/pdf/figure1-14.pdf_