In a speech prepared for delivery at the University of Maryland, IMF chief Christine Lagarde said India and Mexico are enjoying robust growth even as emerging economies are facing slow growth and reversal of capital flows, as is the case with China.
Ms Lagarde said after years of success, emerging markets as a group are now facing a new harsh reality as growth rates are down, capital flows have reversed and medium term projects have deteriorated.
In effect Brazil and Russia are in recession while India and Mexico are enjoying robust growth, so it would be a mistake to think of these countries as a homogeneous bloc.
Emerging and developing economies account for about 60 percent of global GDP, up from just under half a decade ago.
She mentioned the increasing geopolitical and environmental risks as in the Syrian refugee crisis that is directly affecting countries such as Turkey, Lebanon and Jordan.
For the first time in history, emerging market countries such as India, China, Brazil and Russia are now among the 10 largest shareholders of the Fund.