Moody's Investor Service experts said that the economic recovery in emerging markets will face difficulties, but the situation in Asia is likely to be better than in other regions.
"The pandemic-related recession has been tougher in emerging markets than in advanced economies," said Atsi Sheth, managing director of credit services and research at Moody's.
Meanwhile, she added that against the background of the spread of the Omicron coronavirus strain, demand in many developing countries remains lower than before the pandemic, while the tightening of monetary policy by the main central banks of the world has a negative impact on demand.
"Therefore, the recovery process in emerging markets will be difficult. However, things are relatively better in Asia than in some other regions," Shet said.
However, Sheth noted that the slowdown in China's economic growth is a concern due to the current problems in the real estate sector. "But the Chinese government has the right tools to manage the slowdown in growth in a balanced way," Sheth added.
Meanwhile, Shet said that rising prices could be another challenge for Asian countries. "This is especially true for some central banks in terms of how much they can support the economy if the omicron option starts to threaten growth," Sheth added.