Reported about 6 hours ago
The U.S. decision to freeze funding from its aid agency, USAID, poses a significant risk to emerging markets, making them less attractive to private investors. The cuts could undermine support for vital sectors like healthcare and agriculture in countries from Sri Lanka to South Africa, leading to increased borrowing costs and potential economic instability. Investors warn that the reduction in aid complicates funding for start-ups in developing economies and negatively affects their creditworthiness, while the rapid pullback exacerbates challenges for nations already facing economic difficulties.
Source: YAHOO