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Credit Conditions Emerging Markets Q2 2023: Enduring Risks

March 28, 2023

Credit conditions in emerging markets (EMs) will remain under pressure through 2023. Slower economic activity, along with stubborn inflation and rising financing costs, will undermine corporates' and households' payment capacity. On a positive note, supply chains continue normalizing, which should help ease logistics costs. China's reopening may also support some EMs, and S&P Global's Purchasing Managers' Index continues to improve.

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