With the explosion of remote office work, there are tremendous opportunities in areas such as cyber security, cloud computing and the development of virtual workplaces. Given the worldwide nature of the pandemic, advances in the digital economy can more easily become scalable, fast-growing exports.
The IIF notes that south-south flows could potentially offset declining flows from mature economies. But, one can only speculate about the impact of the eventual exit from unconventional monetary policy, the conflicting forces and which will be stronger. There may also be a fair amount of differentiation among emerging economies and some may be affected somewhat more than others depending on risk perceptions.