The global economy has experienced multiple shocks in the past three years. Emerging markets and developing economies not only need to reignite growth and secure a full recovery, but they also must manage rising debt and other policy considerations.
Regulatory changes and other market reforms can ease this challenge, as we outline in a new staff discussion note. Examples include lowering barriers to entry in utilities markets, establishing financial supervision and regulatory frameworks, and lowering restrictions on foreign exchange transactions and cross-border capital flows.
Major changes in regulations are associated with a 3 percentage point reduction in the ratio of debt to gross domestic product, according to our analysis. This dec…
Read the full article at: https://www.imf.org/en/Blogs/Articles/2023/09/12/market-reforms-can-stabilize-debt-and-foster-growth-in-developing-countries