Emerging economies grew strongly in
2021 with an estimated 6.6 percent as they rebounded from the pandemic-induced
recession. Growth is likely to slow this year while inflation is heating up.
Incoming data from before the war broke out point to continued strength in
retail trade and industrial production. This momentum is likely to wane in China
and Russia as indicated by the March Purchasing Manager Indices, while less so
in other economies. Inflationary factors continued to increase further in March
across emerging economies, driven by rising food and energy prices. With
inflation well above central bank targets across emerging economies, monetary
policy is expected to tighten further in the coming months.