2021 Emerging Markets review: stagflation trepidation - The MUFG Global Markets Podcast

Nobody thought it would be easy, but it is hard to imagine 2021 ending up so challenging for Emerging Markets, with stagflation trepidation – portmanteau of slowing growth and rising inflation – top of mind for the best part of the year.

Risk sentiment has been on a rollercoaster ride for months, faced with a myriad of challenges such as continued COVID-19 headwinds, downside growth risks, rising inflation and inflation volatility, a less supportive global liquidity backdrop, the tapering of asset purchases by developed market central banks, a lower gear in China, a resurgent US dollar, inexorably elevated commodity prices and a leg up in core bond yields.

In this week’s podcast, Ehsan Khoman, Head of Emerging Markets Research (EMEA), takes stock of the performance of Emerging Markets throughout 2021, and underscores the key themes that led investors to increasingly trim their expectations for emerging market throughout the best part of this year.

Disclaimer: www.mufgresearch.com (PDF)