David Lubin, head of emerging market economics at Citi, suggested that against the backdrop of weak growth and a decline in risk appetite, emerging markets could be under a "double whammy" next year.
"We believe that weaker external demand, a slowdown in global trade growth and the consequences of policy tightening in many countries will negatively affect the economic growth of emerging markets," Lubin said.
"In general, the deterioration of the growth picture of emerging markets suggests that the flow of foreign direct investment to these markets may decrease in 2022," Lubin said.
"However, it is unlikely that all these factors will cause a crisis. They will allow us to focus on the situation around domestic debt burdens in Brazil and South Africa, where slowing economic growth and tightening monetary policy will further increase the ratio of public debt to GDP," Lubin added.
Lubin noted that in general, in conditions when large economies are striving to make their supply chains more sustainable, developing countries that were close to large, major economies were in a better position than geographically remote countries, for example, in South America. .