FITCH says emerging-market issuers showed resilience in Q3 but could come under pressure if the Fed turns more hawkish and developed-market sovereign yields rise. FITCH’s base case is financing conditions will be looser in most EMs by 2027 as global inflation eases and central-bank policy pressures recede, but it warns of significant downside risks. FITCH forecasts EM ex-China GDP growth of 3.3% in 2027, below its upward-revised 2026 forecast of 3.6%.

2026-11-01

FITCH says emerging-market issuers showed resilience in Q3 but could come under pressure if the Fed turns more hawkish and developed-market sovereign yields rise. FITCH’s base case is financing conditions will be looser in most EMs by 2027 as global inflation eases and central-bank policy pressures recede, but it warns of significant downside risks. FITCH forecasts EM ex-China GDP growth of 3.3% in 2027, below its upward-revised 2026 forecast of 3.6%.