There are signs that economic conditions across most emerging markets (EMs) have improved marginally, following an overall setback in activity in late December early January. COVID-19 cases started to decline at the end of January, which coincided with an improvement in mobility-related indicators. Manufacturing confidence indices remain near their recent highs, and so do commodity prices, suggesting the goods-driven recovery remained broadly in place in January. However, downside risks to growth are still considerable, given the fluid pandemic-related developments and varying degrees of lockdowns in most EMs.