Emerging markets: can stocks perform despite slowing growth?

There are at least three reasons to think that emerging market economic growth will slow in 2023. The good news, however, is that EM inflation is around its peak and should start to fall back during the course of 2023. The impact of sharp increases in commodity prices after Russia invaded Ukraine in early 2022 will start to reverse as base effects in food and energy inflation become more favourable. And a combination of tighter policy and slower growth will ultimately weigh on core pressures. This piece looks in depth at these beliefs.