Liquidity strains to persist for emerging, frontiers markets

A woman in personal protective equipment (PPE) collects a swab sample from a woman amidst the spread of the coronavirus disease (COVID-19) in Mumbai, India, September 12, 2020. REUTERS/Francis Mascarenhas

KUALA LUMPUR: Many emerging and frontier market economies will commence their recoveries with greater fiscal and external weaknesses, according to Moody’s Investors Service.

Michael S. Higgins, a Moody's analyst, said on Monday these market economies have experienced a substantial shock through multiple channels such as a drop in export values on lower commodity prices; weaker tourism and lower global demand; and volatility in non-resident capital flows.