A trader walks past a digital stock price display outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. REUTERS/Mike SegarLONDON, Dec 28 - It has been a rough 12 months for emerging markets that have seen more governments stumble into default, currencies suffer and double-digit losses in stocks and bonds alike - though manyBelow are the events, trends and topics investors expect to shape the outlook for emerging markets next year.
Recovery could be delayed if emerging central banks lack room to lower interest rates for most part of the year.China's reopening following its COVID-19 lockdowns will be bumpy, but making up nearly a fifth of global gross domestic product the prospect of a sharp upswing at a time of slow global growth is enticing.
Globally, the war has transformed energy markets and inflation pressures, food security and geopolitical risk perception - factors that are often more keenly felt in emerging economies. Emerging Europe has also felt the immediate humanitarian impact - from refugee movements to Russia's brain drain.A growing list of countries are in debt distress in the wake of COVID-19 and the war in Ukraine: Zambia and Ethiopia are trying to overhaul debt burdens under the Group of 20 Common Framework.
The number of countries locked out of capital markets among smaller, riskier economies is at historic highs - though there might be a saving grace. The country has grappled with surging living costs and a plunging currency, with the lira falling to a record low against the dollar in recent days. Years of unorthodox monetary policy have seen many investors cut exposure to the country's assets. A change in leadership could mark a stellar turnaround.
DOWNFALL! Recession!! But I think it’s good maybe people will reconnect with GOD!!!