A third significant development from the perspective of EMDEs is the greatly improved circumstances in which these countries find themselves, in terms of their size and resilience. The impressive fiscal, financial and structural reforms that many of them have undertaken will put these economies in a far better position than they were 30, 20, or even 10 years ago.
The same cannot be said of every country, of course. Much more remains to be done in many EMDEs as well as AEs. There can be no guarantee that the exit process will end positively for all countries. Vulnerabilities that were previously concealed by generous amounts of global liquidity may become more evident as normal monetary conditions are restored.