The economic rebound in emerging markets (EM) still has steam and is projected to run into next year, S&P Global said in a new report, but warned that EM risks are getting worse as inflation keeps accelerating, potentially driving faster-than-expected normalization of monetary policy, tighter financing conditions, and market volatility. The EM economic recovery still hasn’t run its course, S&P Global said in a Dec. 16 report (pdf), noting that a number of sectors continue to operate below capacity, suggesting above-trend economic growth. Brazil and Turkey are exceptions to this forecast, with various policy moves contributing to elevated inflation expectations and higher uncertainty. Brazil’s economy is projected to grow by a lackluster 0.8 percent in 2022, while Turkey’s is expected to slow sharply to 3.7 percent from 9.8 percent in 2021. Overall, risks to EM economies are worsening amid rising inflation in many key countries, the report says. The chief …
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