War, inflation worsen conditions for emerging markets: S&P

Supply shocks from higher commodity prices, logistics costs exacerbating ongoing inflationary pressures, agency says

By Ovunc Kutlu

ANKARA (AA) - Russia's war on Ukraine and record high inflation in the world are worsening conditions in emerging markets, the S&P Global Markets said in a statement on Wednesday.

"We see risks worsening across emerging markets (EMs). The Russia-Ukraine conflict, sustained inflationary pressures, tighter-than-expected financing conditions, as well as China's uncertain growth trajectory are raising concern about future economic performance of EMs," it added.

The global rating agency said it lowered its EM economic growth forecast for 2022 to 4%, from 4.8%.

"Supply shocks from higher commodity prices and logistics costs are exacerbating ongoing inflationary pressures," the statement said.

The agency said it expects consumer price inflation in emerging markets to be 1.2 percentage points higher in this year, compared to its November inflation forecast.

Be the first to comment
UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.

Money News