The News
Deadly protests in Kenya and a failed coup in Bolivia this week reveal the “dangers posed by faltering economies and punishing austerity measures,” Reuters wrote. During the pandemic, many low-income countries faced economic catastrophe and debt default. Now, these governments are feeling “delayed fiscal pain,” an analyst said. Bolivia, whose president thwarted the coup, is contending with dollar shortages, soaring borrowing costs, and a “junk” credit rating. Meanwhile, more than 20 people died in Kenya during protests over now-rescinded tax hikes designed to cut the country’s budget deficit and borrowing. “The question is whether this is the canary singing the warning to the government, and to the IMF, as to how much fiscal austerity can be packed into one year,” the analyst added.
