Recoveries in much of the emerging world were slowing even before the renewed surge in COVID-19 cases across many parts of the globe. The economies of Central & Eastern Europe will be hit hard in Q4 by their alarming outbreaks and the sizeable tightening of restrictions there. Mobility indicators in the region are already trending down. Activity in parts of Latin America and India may fare a bit better in the near term, given that new cases have generally stabilised or fallen recently. And China, along with some other countries in Asia, has continued to control the virus effectively. Even so, in many EMs, the prospect of weakness in the global economy is likely to keep further interest rate cuts on the table.
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