UNCTAD’s Financial Condition Indicators (FCI) aim at measuring and tracking financial conditions in developing countries, helping to fill the gap between the growing complexity of the mechanisms underpinning financial instability in these developing countries and the scarcity of reliable measurement tools.
By building on recently designed econometric tools, mostly used otherwise in advanced country contexts with much superior data availability, the UNCTAD FCIs have a number of advantages over other available early warning monitoring indicators for developing countries, including systematic addressing of lacking data, automatized close-to-real time signaling of stress situations, and country-specific modeling of reliable financial stress indicators.
The UNCTAD FCIs, developed initially for 35 developing countries, and subsequently updated for a number of these countries, have performed highly reliably in providing early warning of financial stress.
External Shocks and Financial Stress post the Global Financial Crisis - UNCTAD financial conditions indicators and financial vulnerabilities in emerging markets.
