Navigating Global Economic Volatilities: Towards Economic Resilience

Abstract

This paper conducts a survey of and discusses how emerging economies can strategically position themselves to navigate the current global economic volatilities. In recent years, the global economy has witnessed heightened economic volatility fueled by a confluence of interconnected global factors. These factors pose challenges for the global economy in general and emerging economies in unique ways. Against this backdrop, this study forms part of the panacea for mitigating the effects of global economic volatilities on emerging economies. While susceptible to external shocks due to unsustainable debt burdens, institutional gaps, limited diversification, and weak institutional frameworks, emerging economies also possess a youthful demographic, rich natural resources, and the agility to embrace new technologies. Coupled with international cooperation, the paper argues that it is feasible, with the right policy mix, strategies, and commitment for emerging economies to successfully navigate global economic volatility by leveraging their demographic dividends, natural resource wealth, technological leapfrogging, economic diversification along with synergistic fiscal, monetary, and structural policy reforms. The examples of case studies outlined in this paper underscore the reality that achieving economic resilience is not a pipe dream but an attainable goal through strategic foresight and unwavering commitment.