Fears of an emerging market crisis due to massive capital outflows tend to be overblown. Emerging markets have much more flexibility in managing their economies than in the 1998 panic, with higher levels of foreign exchange reserves and smaller amounts of short-term and total external debt.
– Sam Osborn, Senior Analyst for Global Analytics
Short-term political uncertainty in Ghana has been resolved following the Supreme Court’s ruling against an election rerun. This is good news for the economy as new elections could have meant a delay in much-needed spending cuts. The government is focusing its efforts on reducing the budget deficit from 12% to 9% of GDP this year, by cutting subsidies and increasing taxes.
– Anna Rosenberg, Senior Analyst for Sub-Saharan Africa
India gets closer to formalizing the much awaited Good and Services Tax bill. While there is still a long way to go before the GST turns into formal regulation, pushing such reforms proactively will help the country in getting out of its current messy situation (while improving investor sentiment).
– Shishir Sinha, Analyst for Asia Pacific