Asia is taking the lead in the recovery process, while the gap to pre-crisis levels in Latin America remains large. COVID-19 infections to remain an issue, as emerging markets are at the back of the queue in hunt for vaccines. China: amid strong recovery monetary and fiscal stimulus to be gradually phased out in 2021.

Number in focus

EmergingMarkets_Number_Q1-21_EN

Turkey’s economy experienced a sharp rebound in the third quarter this year, growing by 6.7% from a year ago - the highest growth rate reported among major economies. While a strong stimulus campaign – including a government-led credit push – boosted consumption and investments, it also exacerbated economic vulnerabilities, which led to a slump in the Turkish lira and higher inflation. Consequently, the new central bank governor raised interest rates by 475bps to 15% in November, but more hikes might be needed to stabilise the currency and bring inflation down. 

Chart in focus

EmergingMarkets_Chart_Q1-21_EN

For a fifth month in a row, the Emerging Markets Manufacturing Purchasing Managers’ Index remained in expansionary territory above the 50-point mark, reflecting an ongoing gradual recovery after the sharp economic contraction induced by the pandemic in spring. More recently, also export orders crossed the 50-point mark, showing that global demand remains
solid. Stricter containment measures, especially in the western world, to tackle the second coronavirus wave have been more targeted compared to spring and mainly impact the services sector, while industrial activity keeps running. 

This may also be of interest to you

Research Reports

Finanzen-3840x2160

Financial Markets

Perspectives Financial Markets November/December 2021

11.11.2021

Research Reports

Konjunktur-3840x2160

Economics

Perspectives Economics November/December 2021

11.11.2021

Research Reports

Konjunktur-3840x2160

Economics

Perspectives Economics October 2021

08.10.2021

Research Reports

Finanzen-3840x2160

Financial Markets

Perspectives Financial Markets October 2021

08.10.2021