Emerging Markets Drive Global Growth but Face Rising Risks, Says Saudi Finance Minister

RIYADH: Emerging markets are now responsible for the bulk of global economic growth, accounting for nearly 60 percent of world output in purchasing power terms, Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said on Feb. 8, while warning of rising debt and geopolitical risks. Speaking at the opening of the AlUla Conference for Emerging Market Economies, Al-Jadaan said the role of developing economies has more than doubled since 2000, marking a structural shift away from advanced economies. He cautioned, however, that many emerging markets face elevated debt levels, slower trade growth and increased exposure to global shocks. International Monetary Fund Managing Director Kristalina Georgieva said emerging economies continue to grow faster than advanced nations but remain vulnerable due to depleted fiscal buffers and rising debt.