Changing emerging markets’ growth models needed to overcome coronavirus challenges: Research

Changing emerging markets’ growth models needed to overcome coronavirus challenges: Research

Growth models in emerging markets and developing economies (EMDEs) need to be remastered in the long term towards more reliance on sustainable domestic sources of finance as a response to the ongoing COVID-19 crisis, found a new research by Egypt's Economic Research Forum.

The research was conducted by the UN Special Envoy for Financing Sustainable Development 2030 Agenda Mahmoud Mohieldin and the Assistant Professor in Economics at the British University in Egypt Sarah El-Khishin.

EMDEs, which have relatively young populations and potential demographic dividends, need to adopt inclusive growth policies and develop their domestic financial markets to channel dividends, leverage domestic savings and fill financing gaps, said the study.

Sustainable domestic sources of finance are key to decreasing reliance on short-term external finance, widening fiscal space, overcoming debt