Sunday 27, April 2014 by Matthew Amlôt

QNB: Calm in emerging markets but underlying vulnerabilities remain

QNB Group reports that capital flows to emerging markets (EMs) recovered in February and March 2014 leading to calmer financial markets. However, the fundamental weaknesses in specific EM economies have not been fully addressed, leaving them exposed to further rounds of capital outflows, weaker currencies and falling asset prices. Some EMs are likely to fare better than others, depending on their underlying fundamentals and the policy measures they have taken so far to address their imbalances.

Features & Analyses