Emerging Markets Defy Expectations, Avoid Debt Crisis Despite Global Headwinds

Emerging markets have not experienced a debt crisis despite global economic challenges. This has surprised analysts.

Mitigating factors include loose fiscal policy in the US and China, accumulation of foreign reserves by emerging markets, and emerging markets extending debt maturities when rates were low.

Central bank independence in emerging markets has enabled preemptive policy rate hikes ahead of advanced economies.

Emerging markets have focused on prudent IMF-recommended policies, not "Buenos Aires consensus" rejected by IMF.

It's uncertain if resilience will persist amid high global rates, but emerging markets' performance has been remarkable so far.