Expectations for emerging markets until year-end: The MUFG Global Markets Podcast

As we near the end of 2021, the emerging market growth outlook appears more challenging and also more heterogeneous than at the outset of the year. Monetary and fiscal policy have played a pivotal role in supporting growth since the onset of the pandemic, but as policy is tightened, these tailwinds are turning into headwinds. Inflation has been driven sharply higher across many economies by a confluence mix of higher commodity prices (energy and food), base effects, re-opening reverberations and fast-recovering developed markets demand.

In this week’s podcast, Ehsan Khoman, Head of Emerging Markets Research (EMEA), offers perspectives on what to expect for emerging markets over the remaining weeks of this year with all-too-familiar issues such as inflation, fiscal overreach and political instability increasingly entrenched on investors’ minds.

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