IGI Logo

1QCY21: India vis-à-vis other emerging markets (EMs)

* With many nations witnessing renewed COVID-wave, the macroeconomic situation has worsened once again. Equity markets have been flat in Apr’21, bond yields have risen in YTD21 and most currencies covered in this analysis have weakened against USD.

* Brazil and Russia have hiked policy interest rates, as their headline inflation moved towards 6%. Indonesia is the only nation, which has cut interest rates in CY21. Except South Africa, Central Banks have expanded their balance sheets in almost all other nations. Further, fiscal deficit had widened in all countries, except Malaysia, in CY20. Lastly, base effect helped merchandise exports to post strong growth in all but Russia and Thailand in YTD21, which are the only nations to have seen deterioration in their external vulnerability index in 4QCY20.

* This quarterly publication provides a comparative analysis of the macroeconomic conditions in the world’s 10 major EMs. Quite often, these economies are clubbed together as a basket, especially in terms of portfolio allocation.

The 10 EMs included in this publication are:

* 1. Brazil (BR), 2. China (CN), 3. India (IN), 4. Indonesia (ID), 5. South Korea (KR*), 6. Malaysia (MY), 7. Russia (RU), 8. South Africa (SA), 9. Taiwan (TW*), 10. Thailand (TH).

To Read Complete Report & Disclaimer Click Here

For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412

Above views are of the author and not of the website kindly read disclaimer