Emerging markets split in resilience to global shocks

Emerging markets show a growing divide in resilience to global shocks, with some countries weathering recent economic turmoil better than others. "Core" emerging markets, often included in major indices, have strengthened through reforms reducing foreign debt and increasing reserves. In contrast, "Periphery" markets remain vulnerable due to higher foreign currency borrowing and lower reserves. Recent events, including the Middle East conflict, have significantly increased borrowing costs for Periphery economies, while Core markets have seen minimal impact, highlighting persistent structural differences.