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Emerging Market Sovereign pressures to persist in 2019

Emerging Market Sovereign pressures to persist in 2019

The key sources of pressure on emerging markets (EMs) over the summer – chiefly tighter US monetary policy and a strengthening dollar, and risks to global trade and growth – remain in place even if market pressure on EMs has eased. The impact of both EM-wide and sovereign-specific factors on EM exchange rates and portfolio flows can already be seen in sovereign credit metrics, and will continue to be felt in 2019