Q1 2023 Emerging Markets Market Review and Outlook

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Investment Grade Portfolio Team
MAR 30, 2023

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2023 has thus far developed into another volatile and challenging year for investors, given tighter monetary policy leading to slower global growth and macro uncertainty. The quarter witnessed its fair share of economic push- and-pull factors. A supportive, soft-landing tone in January was pushed aside by stubborn inflation data in February, then disrupted further by the regional bank concerns in March. Despite the volatile “new normal” economic environment, emerging market (EM) indices were able to post positive returns for the quarter, with the China recovery quietly supporting the asset class in the background.