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Emerging Markets

Emerging markets encompass regions with significantly diverging fundamentals and a broad range of credit challenges—from persistent inflation and tightening financing conditions to sluggish domestic demand and geopolitical tensions.

EM Radar

Leveraging our expansive credit coverage, EM Radar spotlights S&P Global Ratings’ authoritative, forward-looking insights on the largest and most relevant emerging markets across the globe in a monthly newsletter.

Climate Finance In Lower-Income Countries

Low- and lower-middle-income countries are most vulnerable and least ready to adapt to climate change—yet receive the least amount of investment to transition their economies and build resilience to physical climate risks.

Monthly Highlights

Growth Recovering, Policy Uncertainty Rising

Recent Q1 GDP publications have confirmed a recovery across most emerging markets (EMs) driven by domestic demand. With a few exceptions, we expect this recovery to continue in the coming quarters. External demand dynamics are also improving, although with weaker momentum.

Unexpected electoral outcomes across several key EMs have increased uncertainty about upcoming policy paths. In South Africa and India, ruling parties underperformed polls and market expectations, increasing their reliance on alliances to govern and shape economic policy. In Mexico, the incumbent party had a much stronger victory than most expected, increasing uncertainty around several constitutional reforms promised during campaigns, as well as over the government's fiscal trajectory.

In 2023, the number of corporate defaults in emerging and frontier markets decreased to 19 from 26 in 2022, representing 12% of the global total, sharply down from 31% in 2022. Tight financing conditions were the main cause of defaults, with Latin America as the epicenter and no specific industry concentration. In addition, upgrades outpaced downgrades.

Financing conditions were relatively stable in May, with benchmarks marginally down, spreads tightening, and a bond market remaining open for speculative-grade issuance. Greater China’s issuance activity slowed.


Credit Research & Insights

We deliver forward-looking, actionable insights on market-moving trends and their effects on credit—leveraging our proprietary data, analytical expertise, and cross-discipline approach. Our research includes ratings analyses, risk assessments, and credit market forecasts.

Credit Conditions

Our regional and global Credit Conditions Committees—and the research publications we produce—provide financial market participants around the world with an essential resource for identifying and understanding prevailing and potential credit risks.

Economic Research

Our economists are responsible for developing the macroeconomic forecasts and risk scenarios used by S&P Global Ratings' analysts during the ratings process, as well as leading key cross-sector and cross-divisional research projects.

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