Value and risk in emerging markets

Economic OutlookVolume 46, Issue 1 p. 17-23 Feature articleFree to Read Value and risk in emerging markets First published: 29 January 2022 https://doi.org/10.1111/1468-0319.12600AboutPDF ToolsRequest permissionExport citationAdd favoritesTrack citation ShareShare Give accessShare full text full-text accessPlease review our Terms Conditions of Use check box below share version article.I have read accept the Wiley Online Library UseShareable LinkUse link a this article with your friends colleagues. Learn more.Copy URL Share linkShare onFacebookTwitterLinked InRedditWechat Abstract ▪ We expect quarterly growth rates for global economy be similar last year. Emerging market advanced (AE) will also similar; but that's disappointing EMs given their faster trend growth. Global inflation fears peak, EM fall sharply during as impact FX depreciation washes out. But elevated commodity prices, political uncertainty, some second round-effects mean concerns linger through much year economies. Markets remain edgy reward EMs' generally strong fundamentals by H2 2022. current accounts improved, institutions that delivered massive macro volatility decade are mostly intact, government debt can stabilised limited medium-term fiscal adjustment. Political uncertainty may more important than bloated public legacy pandemic. Increased poverty, inequality, dissatisfaction orthodoxy has led polarisation Latin America swallowed even those previous bastions conservatism such Chile. monetary policies ahead curve. This could end up being most conventional policy cycles; raised counter rather turmoil. That bodes well gentle cycle Yields across local currency sovereigns risen sufficiently perk interest. The steepness yield curve recently hit 10-year highs term premia appear historically attractive. inflationary risks keep investors nervous little while longer. Volume46, Issue1January 2022Pages RelatedInformation