VanEck Blogs | Emerging Markets Debt Daily

China introduces new regulations to reign in local government financing. Big inter-regional differences in the size of net interest payments are set to persist in EM in the coming years.

China’s imports are trending up, in line with the domestic recovery. Brazil is frantically trying to solve this year’s fiscal puzzle.

China’s monetary and credit aggregates shows that policy normalization is well underway. Turkey’s rising unemployment suggests that pro-growth policies might stage a comeback.

The longer-term implications of the multi-speed recovery is a major theme at the IMF meetings. Discussions about inflation and bond vigilantism also feature prominently, which explains interest in today’s inflation releases in EM.

The U.S. economy, China’s policy normalization and the impact of ultra-loose policies on global growth are at the center stage at the IMF Spring Meetings. Mexico’s huge upside inflation surprise means there is no space for rate cuts.

Global growth prospects improved, but the divergent recovery might pose challenges to some EM. India’s surprising quantitative easing program does not mean that policy normalization is delayed indefinitely.