COVID-19’s shock for emerging economies

COVID-19 is by far the biggest challenge policymakers in emerging economies have had to deal with in recent history.

The pandemic is hurting emerging economies in at least three ways: by locking down their populations, damaging their export earnings, and deterring foreign capital. Even if the pandemic will fade in the second half of the year, GDP in developing countries, measured at purchasing-power parity, will be 6.6% smaller in 2020 than the IMF had forecast in October.

In this episode, we dig into the topic and sketch the possible tools that emerging economies can use to face the liquidity crisis. The conversation presents the analysis of the authors of a Bruegel Policy Contribution to the topic.

Episode's guests:

Alicia Garcia Herrero, a senior fellow at Bruegel

Elina Ribakova, deputy chief economist of the Institute for International Finance

Hosted by:

Giuseppe Porcaro, head of outreach and governance at Bruegel



The Sound of Economics

Insights, debates, and research-based discussions on economic policy in Europe and beyond. The podcast is produced by Bruegel (, an independent and non-doctrinal think tank based in Brussels. It seeks to contribute to European and global economic policy-making through open, fact-based, and policy-relevant research, analysis, and debate. A podcast member of EuroPod.