Aggregate EM GDP held up better than we had expected over the first half of the year, but we think that a phase of softer growth lies in store over the coming quarters. Our near-term GDP growth forecasts lie below the consensus. With inflation set to fall further, the nascent EM monetary easing cycle is likely to broaden out. Economic vulnerabilities in many of the large EMs have eased significantly in the past year, reducing downside risks to currencies and giving policymakers more room to lower interest rates.
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