Emerging Markets Q3 2026 Economic Outlook Forecasts Persistent Inflationary Pressures

The Q3 2026 Economic Outlook for Emerging Markets (excluding China) forecasts a slowdown in real GDP growth to 4.2% in 2026, a 30 basis point reduction from previous projections. This revision incorporates higher inflation and interest rates, largely attributed to the impact of the Middle East war. Countries like the Philippines and Saudi Arabia saw significant growth forecast revisions. Persistently high inflation is expected to lead central banks in the region to resume tightening monetary policy in the coming months.