Are EM economies really less indebted than developed market peers?

Emerging markets continue to face a number of macroeconomic challenges, often linked with the dramatic falls in commodity prices and political risks that investors must discount for.

With the impeachment of Dilma Rousseff finalised, Brazil can focus on fiscal adjustments and reforming its pension system. While we are encouraged by the first steps taken by new president Michel Temer, the journey for Brazil will be lengthy with the chance for extreme volatility should his team be linked to the ongoing corruption investigations. With the unsuccessful coup in Turkey, president Recep Tayyip Erdogan has consolidated his power and appears to be using the failed putsch as justification for repressive measures against individuals in the Gulen movement. In general, emerg...