Emerging economies need to develop a mid-term fiscal plan as borrowing costs are likely to rise in the future, says a note published by the International Monetary Fund.

Authors Marcos Chamon and Johnathan Ostry stress these economies still need to make use of available resources to tackle the pandemic. Nonetheless, they warn higher rates will likely challenge these jurisdictions in the coming years.

“It is indeed self-defeating to target a higher budgetary balance when the pandemic is not