A Decade After the 2009 Global Recession: Macroeconomic Developments

Emerging market and developing economies (EMDEs) weathered the 2009 global recession relatively well. However, impact of varied across economies. EMDEs with stronger pre-crisis fundamentals — such as large foreign exchange reserves, sound fiscal positions, low inflation suffered milder growth slowdowns, in part due to their greater capacity engage monetary stimulus. Low-income countries were also resilient, aid inflows remittances remained stable. In contrast, that heavily dependent on short-term capital flows portfolio investment cross-border bank lending fared less well, especially those Europe Central Asia. A key lesson for is need strengthen macroeconomic frameworks create policy space prepare future downturns.