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Emerging Markets

Emerging markets encompass regions with significantly diverging fundamentals and a broad range of credit challenges—from persistent inflation and tightening financing conditions to sluggish domestic demand and geopolitical tensions.

EM Radar

Leveraging our expansive credit coverage, EM Radar spotlights S&P Global Ratings’ authoritative, forward-looking insights on the largest and most relevant emerging markets across the globe in a monthly newsletter.

Global Emerging Markets Conference 2023: Spotlight On Asia-Pacific — Virtual Conference

S&P Global Ratings Global Emerging Markets Conference 2023: Spotlight On Asia-Pacific took place virtually on Thursday, July 13, 2023. In the face of an increasingly complex risk landscape for emerging Asia issuers, the conference addressed the top concerns of borrowers, lenders, and financiers. Our region’s senior analysts covered regional macro-credit risks, with a discussion of what the factors meant for various sectors.

Monthly Highlights

Domestic Demand Is Holding Up

Recent Q2 GDP prints indicate ongoing resilience among key emerging markets (EMs), particularly with regards to domestic demand. EM Asia and parts of LatAm have performed strongly in Q2, given continued growth in household consumption and fixed investment. EM EMEA is the only EM region in which most key economies have recorded negative sequential growth, as weak external demand has taken a toll, especially on those countries that are highly exposed to the eurozone.

Economic growth in China and the eurozone is waning, with negative spillover effects for several EMs. High-frequency data in China point to moderating growth in Q3 as retail sales and exports have been deteriorating over the last few months. However, as activity and credit are still growing (albeit at slower rates), a sharp deceleration in growth is unlikely. At the same time, EM EMEA exports are likely to be subdued, as incoming high-frequency data and purchasing managers’ indices (PMIs) in the eurozone, particularly in Germany, remain lackluster.

Spreads will be vulnerable to volatile external conditions. The potential for an additional rate hike by the Federal Reserve, at a time when several EMs are lowering their interest rates, along with disappointing growth in China and the eurozone, could encourage capital outflows and pressure exchange rates against the dollar. In addition, geopolitical risks continue to complicate the outlook.


Credit Research & Insights

We deliver forward-looking, actionable insights on market-moving trends and their effects on credit—leveraging our proprietary data, analytical expertise, and cross-discipline approach. Our research includes ratings analyses, risk assessments, and credit market forecasts.

Credit Conditions

Our regional and global Credit Conditions Committees—and the research publications we produce—provide financial market participants around the world with an essential resource for identifying and understanding prevailing and potential credit risks.

Economic Research

S&P Global Ratings’ team of economists, led by Chief Economist Dr. Paul Gruenwald, is responsible for developing the macroeconomic forecasts and risk scenarios used by S&P Global Ratings' analysts during the ratings process, as well as leading key cross-sector and cross-divisional research projects. The economists are the public face of the firm’s macro view, and regularly comment on the outlook, monetary and fiscal policies, and macro-credit developments.

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