2023 a Challenging Year for Emerging Markets: Moody's
IANS 17 November 2022
A combination of weak growth in advanced economies, persistent inflationary pressures, the Russia-Ukraine conflict, tight financial conditions, and a subdued growth outlook for China will create a difficult environment for emerging markets (EM) in 2023, said Moody's Investors Service.
In a report, Moody's said next year will present a challenging backdrop for EMs.
"Our negative outlook on credit conditions for EMs will permeate to sovereigns, companies and banks. Although higher-rated EM issuers have the credit fundamentals to weather the turn in the cycle, weaker entities with ratings of B or below are vulnerable given their limited financing options and reduced capacity to absorb shocks," the credit rating agency said.
Relatively deep domestic financial markets and proactive monetary policies will support the resilience of most EM sovereigns with ratings of Ba or higher.
Lower-rated sovereigns, in particular, will experience credit stress amid higher borrowing costs and diminished market access, Moody's said.
As regards India, food and fuel remain the main drivers of inflation because they represent a larger share of the consumption basket. For example, rising food prices have contributed to almost half of the growth in headline inflation this year in India, Moody's said.
With rupee depreciating against the US dollar, Moody's said the action taken by the central bank (Reserve Bank of India) ensures an orderly and limited depreciation.
Moody's said that Indian banks' asset quality will continue to improve on recoveries and write-offs of legacy non-performing loans.
In India and China, wind and solar power are the least expensive energy sources, and governments are supporting the transition in the form of mandatory consumption targets or prioritising renewable versus fossil fuels in dispatching energy.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Bank of England Warns of the Longest Recession in 100 Years
IANS 04 November 2022
The Bank of England has warned the UK risked being plunged into the longest recession in 100 years after it pushed up the cost of borrowing to 3% in the biggest single interest rate rise since 1989.
A 0.75 per cent...
Mithun Chakraborty - Bappi Lahri Classic Hit “Jimmy Jimmy” Becomes Unlikely New Anthem in China To Protest COVID Lock-downs
Moneylife Digital Team 03 November 2022
Nobody would have ever imagined that Hindi music composer Bappi Lahiri’s superhit track 'Jimmy Jimmy Aaja Aaja' from the 1982 movie 'Disco Dancer' starring Mithun Chakraborty would one day be used by the people of China to protest...
How Google’s Ad Business Funds Disinformation Around the World
Craig Silverman, Ruth Talbot, Jeff Kao  and  Anna Klühspies (ProPublica) 01 November 2022
This story was originally published by ProPublica.
Google is funneling revenue to some of the web’s most prolific purveyors of false information in Europe, Latin America and Africa, a ProPublica investigation has...
The US Never Banned Asbestos. These Workers Are Paying the Price
Kathleen McGrory  and  Neil Bed (ProPublica) 21 October 2022
This story was originally published by ProPublica.
Henry Saenz remembers when he first learned what even the tiniest bit of asbestos could do to his body. He was working at a chemical plant where employees used the mineral...
Free Helpline
Legal Credit