This update discusses the latest global macroeconomic challenges effecting emerging markets.

The world currently faces a wide range of significant challenges, both political and economic. Global growth estimates continue to be revised lower and lower by economists. Fitch Solutions’ January 2022 forecast of 4.1% growth was adjusted to 3% in June 2022, with further downward revisions possible.

Supply side challenges are putting upside pressure on global prices. Fuelled by sharp interest rate hikes, financial markets remain very volatile, weighing on sentiment, as well as household and corporate balance sheets.

The Chinese economy faces regulatory pressure in the tech sector, continued stress in its real estate market, and economic disruption caused by lockdowns under the zero-Covid-19 policy.

Covid-19 fatigue, the ever more severe cost of living crisis, and slower growth, are leading to increased popular dissatisfaction and weighing on political stability.

In this edition we cover:

  • An overview of the market, including a summary of recent developments;
  • Our emerging market report covering five regions, in partnership with Fitch Solutions;
  • Highlight market moves over the last six months