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Slow vaccination a risk to emerging-market rally

28th May 2021

By: Tasneem Bulbulia

Deputy Editor Online

     

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The economic recovery in emerging markets (EMs) will remain highly vulnerable to pandemic-related setbacks, given the slow vaccine roll-out, financial services company S&P Global Ratings states in its ‘Emerging Markets Monthly Highlights: Slow Vaccination Keeps Recovery At Risk’ report.

It notes that, while it seems the worst of the latest Covid-19 wave has passed in most EMs, the likelihood of intermittent lockdowns will remain high for some time.

Consequently, vaccination progress will remain a key factor determining future economic performance.

Most EMs are far from reaching sufficient vaccination levels to ensure an uninterrupted economic recovery, it notes.

Meanwhile, it points out that the recent rise in commodity prices is a boon for most EMs, but that inflation risk is increasing, along with pressure for tighter monetary policy.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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