BAKU, Azerbaijan, April 25. Emerging markets (EMs) may experience serious impact on both consumer-oriented sector, and the industry sector, Trend reports via the research from the Capital Economics, an independent economic research consultancy based in London.
The hostilities between Russia and Ukraine, as well as the remnants of the COVID-19 pandemic's impact, will hinder industrial production, the research said.
“Manufacturers in Central and Eastern Europe are reporting increased raw materials shortages and the latest PMI [Project Management Institute] surveys suggest that suppliers’ delivery times have started to lengthen at a faster pace,” said the company.
As a result, the GDP growth is expected to decrease in most EMs with recession risks impending in Emerging Europe, according to Capital Economics.
“High inflation, coupled with monetary tightening, is likely to continue to squeeze incomes and weigh on domestic demand,” said the company.
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