Economic growth in emerging markets is expected to slow “rapidly” this quarter, due to China and Russia, but also due to the tightening of monetary conditions, JPMorgan analysts warn.
“China’s commitment to zero-sum COVID policy, Russia’s recession and the tightening of global financial conditions are expected to drive emerging markets to much lower levels this quarter,” said Luis Goulden, chief executive of the Bank of Greece. in their analysis as broadcast by Reuters.
Emerging currencies are expected to subside as the strength of the US dollar continues and there are risks to the economic development of countries in the region, they say.
The US bank also maintains the underweight in the domestic debt markets as inflation in the region is revised upwards, as are estimates for higher interest rates as central banks are expected to continue to focus on combating high inflation.
Source: Capital
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