Developing Markets: Macroeconomic Results of 2018

Lyudmila G. Gadiy – Junior Researcher of the Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Anna M. Kiyutsevskaya – Researcher of the Gaidar Institute; Senior Researcher of the Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Pavel V. Trunin – Head of Center for Macroeconomics and Finance of the Gaidar Institute; Leading Researcher of the Russian Presidential Academy of National Economy and Public Administration, Doctor of Economic Sciences (Moscow, Russia). Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Maria Ye. Sherbustanova – Junior Researcher of the Gaidar Institute (Moscow, Russia). E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

In 2018, the developing economies were experiencing a capital outflow due to toughening, by the USA, of its monetary policy, as well as the trade war between China and the United States. The most vulnerable ones turned out to be Argentina and Turkey, two countries that had accumulated quite a few domestic problems. In spite of the somewhat improved outlooks in early 2019, some significant risks of destabilization of the existing economic situation are still there. The strongest threats are associated with the situation in China: its domestic problems have the potential of triggering a new global economic crisis.

Key words: developing markets, capital outflow from developing markets, monetary policy of US FRB, trade war between China and USA.