04/09/2024

IMF Says Shocks in G20 Emerging Economies Impact Rich-world Growth

Domestic shocks in China can roil output variation in other emerging markets

Domestic shocks in emerging economies in the G20 are increasingly impacting growth in the rich world, according to a report published on Tuesday by the International Monetary Fund (IMF).

Those countries -- ranging from China, the world's second-largest economy, to default-prone Argentina -- have become so embedded in the global economy, particularly via trade and commodity value chains, that they are "no longer simply on the receiving end of global shocks."

"Since 2000, spillovers from domestic shocks in G20 emerging markets — particularly China — have increased and are now comparable in size to those from shocks in advanced economies," the IMF wrote in a chapter of its World Economic Outlook report, released ahead of next week's IMF World Bank Group Spring Meetings in Washington, D.C.

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