This arrangement will serve to mitigate cross border risks that regional banking groups may pose to the financial sectors of the East African countries.
This is tilted more towards goods than services, matching the composition of euro area exports better than that of other large advanced economies. Therefore, in macroeconomic terms, the euro area’s trade relationship with emerging economies has been generally positive. Conclusion In spite of the decoupling experienced in recent years, the fortunes of advanced and emerging economies are intimately linked.