The polycrisis has eased off and the US Fed signalled that it will slow rate hikes as inflation appears to be peaking. That is good news for EM markets and investors have been buying high yielding debt as default fears abate.
The number of people without access to electricity is rising for the first time in decades, says IEA, thanks to the energy crisis.
Soaring inflation, rate hikes and a stronger dollar are reminiscent of the early 1980s – a decade that brought a wave of EM sovereign debt crises. This year has already seen Sri Lanka default, hit by an external liquidity crisis.