Inflation ( CCPI)35.3% (April 2023)
GDP-12.4% (4Q 2022)
Unemployment4.8% (4Q 2022)
3M T-Bill Rate25.60%
12M T-Bill Rate22.97%
2Y T-Bond Rate29.25%/ 30.00%
4Y T-Bond Rate27.25% / 27.35%
USD/LKR297/298
Reserves $2.75Bn (April 2023)
Cum. Trade Deficit $862Mn (March 2023)
Cum. Fiscal DeficitLKR 2,300 Bn (Dec 2022)

War and Pandemic Increase Prevalence of EM Twin Deficits

InternationalJun 10, 2022
War and Pandemic Increase Prevalence of EM Twin Deficits
This story is available exclusively to charts.lk subscribers. Become an member and start reading now.
Fitch Ratings states it forecasts that more than a quarter of Fitch-rated emerging markets (EMs) will experience budget and current account deficits of at least 4% of GDP in 2022. EM countries running larger current account deficits in the wake of Russia’s invasion of Ukraine and the ensuing jump in energy and food prices. Fitch has downgraded nine different EMs so far in 2022, more than the whole of 2021, and compared with just one upgrade. A record 48% of Fitch-rated EM are now in the B/C/D categories.

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.