Extensive negative supply-side disruptions, the war in Ukraine, rising commodity prices and a less supportive global liquidity backdrop have markedly deteriorated the inflation-growth trade-off across Emerging Markets (EM).
A drawn-out inflation challenge with more rate hikes, tighter financial conditions, sharply slowing growth and higher borrowing costs leaves a perplexing outlook for EMs.
Ehsan Khoman, Head of Emerging Markets Research (EMEA), believes it is prudent to look at bottom-up narratives in gauging where the risks sit and where the opportunities remain across the EM complex.
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