Skip to main content

Mounting headwinds set the stage for slower growth

The EM recovery is now entering a more difficult phase as the boost from economic re-opening fades, supply shortages bite, growth in China weakens and the terms of trade worsen for major commodity producers. Lower vaccine coverage means that the threat of renewed virus waves and lockdowns will continue to cast a cloud over the outlook for some regions. As a result, GDP in emerging markets will stay some way below its pre-virus GDP path. Elevated rates of inflation will keep central banks in Latin America and Emerging Europe in tightening mode, while those in Asia will generally keep rates low.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access