According to analysts at Danske Bank, economic growth in emerging markets is set to slow down in 2018-20 and suggest that emerging markets will adjust further to rising trade and monetary challenges.
Key Quotes
“We expect continued free-floating regimes to improve their external balances further across emerging markets. Acceleration in inflation is likely to continue in early 2019 but we expect it to start falling again in the second half of 2019.”
“We expect economic growth to slow down across the majority of emerging markets due to rising rates to fight inflation and FX volatility. However, we expect less aggressive monetary tightening across emerging markets in 2019 than in 2018.”
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