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Keeping the momentum:how finance can continue to support growth in EMEs

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This paper examines how finance can support economic growth in emerging market economies (EMEs). Historically, finance has contributed to rising income levels, yet its future impact is less certain. Evidence indicates that as credit and income levels increase, the positive impact of finance on growth tends to weaken. Additionally, unchecked credit expansion can lead to financial busts, resulting in prolonged periods of sub-par economic performance. At the same time, advances in digital technologies offer new opportunities for enhancing financial intermediation. Policy decisions will be key in three main areas: implementing structural reforms to improve market-based finance access; harnessing digital technologies to enhance financial efficiency and inclusion; and maintaining macro-financial stability to ensure sustainable growth.

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  • Bank for International Settlements, 2024. "Keeping the momentum:how finance can continue to support growth in EMEs," BIS Papers, Bank for International Settlements, number 148.
    • Handle: RePEc:bis:bisbps:148
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