COVID-19 has led to profound turmoil and severe disruptions in our lives and economies. Even more than the 2008–2009 global financial crisis (GFC)—which was most directly felt in the United States and in Europe—the current pandemic-induced crisis is affecting nearly all countries around the world. This article provides an overview of the economic developments in emerging market economies (EMEs), with a focus on those that have been systemically important for the world and/or euro area economy: China, India, Brazil, Russia and Turkey. A decade ago, EMEs succeeded in weathering the crisis rather well and were the engine of the subsequent global recovery. Based on our overview, we conclude that EMEs will most likely not play that role again throughout the COVID-19 crisis.
This article is composed of excerpts from the 2017 annual report of the National Bank of Belgium (“Report 2017 - Economic and financial developments, NBB, March 2018), the FSAP results and recommendations published by the IMF on 8 March 2018 (“Belgium : Financial System Stability Assessment”, IMF, March 2018) and the press release issued by the NBB at the time (IMF stress tests confirm that Belgian banks and insurance companies are able to withstand severe shocks, NBB, 8 March 2018).
Real estate is a key economic sector for financial and macroeconomic stability. The sector is prone to boom/bust cycles and has been a common cause of banking crises in the past. Macroprudential authorities should therefore closely monitor developments in this crucial sector and stand ready to take policy action in case adverse developments pose a threat to financial stability. Over recent years, many EU countries have actively used macroprudential instruments to address vulnerabilities in the real estate sector. This article reviews the work of the European Systemic Risk Board (ESRB) concerning the residential and commercial real estate sectors and financial stability in the EU, covering both the ESRB’s analytical work and policy work.