Standard & Poor’s cuts growth forecast for emerging markets in 2023

Credit rating agency Standard & Poor’s on Tuesday cut its 2023 growth forecast for emerging economies, citing continuing pressures from the Russia-Ukraine conflict, the COVID-19 pandemic in rate and tight monetary policy conditions.

The rating agency now expects real GDP of emerging economies to grow by 3.8% next year, in drop from the previous growth forecast of 4.1%, according to Reuters.

“The downward revision to growth comes from all emerging markets except China and Saudi Arabia,” he added, noting that forecasts for 2024 and 2025 remain broadly unchanged, with a media by 4.3%.

The agency warned that inflation in emerging markets is either past its peak or will soon peak, on the back of low food and fuel price inflation, but was still close to staying above central bank targets. in many economies, forcing monetary policies to remain constrained.

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