Ukraine was called the most vulnerable of the emerging economies

© RIA Novosti / Alexander Demyanchuka in photobacteria of the hryvnia. Archival photoUkraine was called the most vulnerable of the emerging economies© RIA Novosti / Alexander Demyanchuka the image Bank

Ukraine ranked first in vulnerability among emerging markets and the eighth in the world rankings, according to consulting firm IHS Markit.

The experts evaluated the stability of currencies and 190 countries under the influence of external factors. The rankings took into consideration the balance on current account, external debt, foreign reserves and inflation.

It is noted that the Ukrainian hryvnia is under strong pressure since the beginning of 2018, however, the intervention of the national Bank helped mitigate the weakening of the currency.

Chief economist of research company Markit IHS Nariman Behravesh believes that Ukraine remains vulnerable to adverse external financial conditions due to the chronic current account deficit and budget deficit. He also noted that the country is exposed to risks of balance of payments.

Russia and China were considered the least vulnerable among emerging markets because of the surplus of the payment balance, little external debt and large foreign exchange reserves. However, economists added that the Russian economy is vulnerable to geopolitical risks.