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

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.