Summary

As widely discussed in economic circles, emerging economies face numerous headwinds in the post-COVID era: higher debt loads, harder borrowing terms, gradual and uneven recoveries in key sectors such as tourism, and increased inflationary risks, just to name a few. However, much of these analyses put the cart before the horse by assuming that the worst of the pandemic is already over. India’s raging outbreak proves that this is not the case – and the cautionary examples don’t stop there. Many other emerging economies share India’s pre-second wave vulnerabilities, and in time they too might suffer similarly tragic consequences.