pdf-articles Ratings /ratings/en/research/pdf-articles/20200423_credit-conditions-emerging-markets-longer-lockdowns-heightened-risks content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

Credit Conditions Emerging Markets: Longer Lockdowns, Heightened Risks

Credit conditions continue slipping across EMs; we now expect a deeper global recession and a slower recovery. COVID-19 has rapidly spread across EM economies, and governments are taking restriction measures to contain the epidemic, halting most business activities and causing unemployment to soar. The combination of extended lockdowns in DM economies and domestic social distancing is deepening the shock to EM economies. Risks remain firmly on the downside given that longer lockdowns could impair household income, corporations' liquidity, and banks' asset quality. The risk of policy mistakes is on the rise, failure to contain the pandemic could lead to longer lockouts at some point and a deeper economic shock. Moreover, the absence of proper economic stimulus could derail recovery and prolong the economic downturn. Most EMs have limited wiggle room in light of weak per capita income, fiscal rigidities, high or rising leverage in some cases, and dependence on external financing in a few countries.

Download