(Bloomberg) -- The virus outbreak is kicking emerging markets when they are down -- compounding existing problems and adding some significant new ones, with economic output expected to contract 10%-20% in the second quarter, according to Bloomberg Economics. The shape of the subsequent recovery will depend on whether governments are able to replace lost income for businesses -- to keep them afloat -- and for workers -- to keep them employed. For most EMs, the fiscal response has fallen short: Slumping tax revenue, the collapse in commodity income and soaring health costs have reduced the space for action.
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