The markets of Ukraine, China, Argentina, South Africa and Turkey are the most vulnerable among all developing countries in terms of funding needs, adequacy of reserves, asset valuation, institutional quality and trade sustainability. This is stated in the new May survey of the Institute of International Finance (IIF), АgroРolit.com reported.
The report says that experts assessed the potential changes in investor interest in emerging market assets amid the strengthening of the dollar, rising interest rates and intensifying trade disputes.
"Turkey, Argentina, South Africa, Ukraine and India have the highest need for financing," IIF experts wrote.
According to their estimates, Indonesia showed the most notable improvement over the previous year, including in terms of reducing funding requirements and increasing the attractiveness of assets. The situation has improved in Malaysia, Chile, Egypt and Brazil.
"India's position has worsened the most, in many respects this is due to an increase in the current account deficit in its balance of payments, while a comparable increase in risks is also observed in Turkey, Poland and Ukraine," the experts said.