In this episode, Joan Feldbaum-Vidra, Head of Sovereigns at KBRA, highlights the following topics:

• China growth slowdown and monetary policy normalization by global central banks are key to watch.

• Food price inflation is a particularly sensitive area for emerging markets (EM).

• Real effective exchange rate weakness helps insulate EMs from shock.

• Reality check: Many EMs have until recently upgraded their growth projections and have been proactive in the face of tightening credit conditions.

“Inflationary impulses don’t appear to be putting EMs in the danger zones like in the past, even considering the inflation we are experiencing in this stage of the pandemic environment.” – Joan Feldbaum-Vidra