Investor sentiment towards the GCC region will improve further due to higher oil prices. Government-Related Entities (GREs) and the financial sector are expected to slightly increase their debt issuance. The pace of ESG issuance is accelerating.

The January U.S. Regulatory Update covers Fed announcements on digital assets oversight, climate-related financial risk updates, new regulatory proposals, and more.

As pandemic strains eased, EM sovereign Eurobond issuance subsided to pre-COVID levels in 2021 ($145 billion), with Chile, Mexico, and UAE the top issuers. With global rates set to rise in 2022, and still-high funding needs, EM sovereign issuance is expected to remain broadly stable at $150-$160 billion this year.

Beijing took a series of bold regulatory and economic policies in 2021. Though good for long-term sustainability, the intensity of these policies is hurting near-term growth. Better communication and some policy easing can relieve the near-term pains.

Appropriate regulation of stablecoins will continue to present challenges as these assets become more sophisticated and widely adopted.

2021 was a tumultuous year for China’s economy, which was disrupted by the housing slump, energy shortage, and regulatory storms. We expect policies will be significantly more pro-growth in 2022.

The December 2021 edition of the Insurance Update provides targeted updates on IIF insurance activities and events.

There is clear consensus that carbon capture, utilization, and storage (CCUS) is critical to achieving net-zero ambitions, including in many national government plans. Carbon capture could lead to 5-6 Gt of yearly CO2 emissions reductions by 2050, equivalent to 1/6^th of current annual emissions.

Uzbekistan coped well with the pandemic. Growth will remain around 6% in 2022, inflation is declining, the fiscal deficit is projected to narrow gradually, and the public debt will remain modest. 

Once a key driver of China's economic growth, real estate is now seen by many as a cancer of the economy. Real estate and construction together account for 14.5% of China's GDP and 20% of employment. This note examines the role of real estate, particularly housing, in China's economy. 

The recent Lira depreciation is much more pronounced than in 2018. Importantly, the CBRT’s monetary policy response has been different. Rate cuts contributed to depreciation, raising financial stability concerns. FX passthrough will affect rising inflation and inflation expectations. Lira returns above inflation should help ease inflationary pressures.

Chile's current account deficit is wide despite high copper prices.

The December 2021 Global Regulatory Update provides updates on current work streams.

The economy is stabilizing, with fiscal adjustment in line with IMF program targets. Rapid vaccination rollout and subsequent reopening have contributed to ongoing recovery, and EMBIG spreads have dropped sharply. Tough political negotiations are key to move forward with the ambitious reform agenda.