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Emerging economies will experience a clear recovery in growth in 2021 and 2022. According to our latest projections, this decline will give way to growth of 4.8% in 2021 and of 3.8% in 2022. But the real key for the emerging world right now is not the recovery itself, but how unequal it is going to be.
During the first three quarters of 2025, sterling depreciated against the euro, despite having a favorable interest rate differential, due to the resilience of the eurozone and fiscal pressures and political uncertainty in the United Kingdom. Since then, this dynamic has partially reversed, with a moderate appreciation that has become more pronounced following the conflict in the Middle East, during which sterling has outperformed most major currencies, aside from the US dollar.