While not envisaging any systemic risk propagating across emerging markets, the macro financial outlook remains challenging amid growth concerns, still-high inflation and tighter global financial conditions.

Riding the Green Wave.

Because of unorthodox economic policies, Turkey will face a tough year ahead, with inflation peaking at a 20-year high… but we do see some lights at the end of the tunnel!

2022 will be the “year of reckoning” for DM economies when they will test the effectiveness of the policies deployed since the peak of the pandemic phase and face the challenge of retuning to normality...

At the time when EMs are navigating towards a healthier environment (Covid cases numbers shifting downward and vaccination rollouts speeding up), China’s selfinduced deceleration is now looming.

Persistent supportive funding conditions and the improved macro picture are consistent with a current and expected benign picture for US and European default cycles, which are likely to remain on a downward trend in the coming months.

All eyes are on the recent tightening of regulations for tech and education companies by Beijing and on possible new measures that could affect other sectors.

The monetary policy conditions in the emerging markets are still definitely dovish.

In the early stage of RMB internationalisation, RMB transactions occurred mostly in trade settlement between China and neighbouring economies.