There Is a Lot of Strength in Fundamentals of EM, Says S&P's Sifon Arevalo

The transcript discusses the outcomes of the IMF and World Bank meetings in Bali, focusing on concerns over trade and liquidity conditions. It highlights the challenges faced by emerging markets, particularly Argentina and Turkey, due to their economic vulnerabilities. The discussion emphasizes the importance of economic diversification and resilience in emerging markets, with examples from Asia, such as Malaysia, Indonesia, and India, which are better equipped to handle tightening conditions.

What were the main concerns discussed during the IMF World Bank meetings in Bali?

• Climate change and its impact on agriculture

• Trade and liquidity conditions affecting emerging markets

• Technological advancements in developed countries

• Political instability in Europe

Which two emerging markets were highlighted as being more exposed due to their economic fundamentals?

• Brazil and Mexico

• India and China

• Argentina and Turkey

• South Africa and Nigeria

What distinguishes the more resilient emerging markets in Asia?

• Diversified economies and reduced external liquidity needs

• Strong reliance on external liquidity

• Political alliances with Western countries

• High levels of foreign debt

How have some Asian emerging markets prepared to handle tightening conditions?

• By increasing their foreign debt

• By diversifying their economies and reducing external liquidity needs

• By forming new political alliances

• By focusing solely on domestic markets

Which of the following is NOT a characteristic of the resilient Asian emerging markets mentioned?

• Robust debt profiles

• Heavy reliance on external liquidity

• Strong demographics

• High ratings