Welcome to the Global Emerging Markets 2022 outlook in which fund manager Kunjal Gala looks ahead to challenges and opportunities in the developing world in the coming months.
- Recent data points suggest inflation is close to peaking. Growth and not inflation is likely to be a key challenge in the future
- While inflation will moderate going forward, it might stay at an elevated level compared to history driven by factors such as – supply chains slow at adjusting, structural shortage of critical commodities, and spending towards infrastructure/decarbonisation (effectively acting as a fiscal boost)
- Political and geopolitical uncertainty remains high globally, with some crucial political events occurring in 2022 that are likely to change the course of policy