Soaring inflation leads emerging markets into stagflation, IIF report says – The National

Soaring inflation leads emerging markets into stagflation, IIF report says – The National

Inflation has jumped around the world with many emerging-market economies entering the stage of stagflation, the Institute of International Finance said.

In economics, stagflation is a term for when inflation is high and economic growth is sluggish. Unemployment often rises sharply.

In many EMs, high inflation exists alongside incomplete economic recovery and output is below pre-Covid levels, IIF said. Inflation has risen sharply in these markets, surging more than 6 per cent in recent months.