Whether or not the accumulated excess liquidity will translate into inflationary pressures over the medium term depends on the extent to which past portfolios shifts are reversed and on the future strength of economic growth. Should excess liquidity persist, it could lead to inflationary pressures over the medium term.
The IMF recently estimated in its global economic outlook that while the contribution of EMEs to the global economic growth is expected to remain about 70% for the next five years as in the late 2000s, their share in the global GDP is forecast to continue to increase to 54% in 2016.