After withstanding a multitude of global challenges last year, emerging markets look poised for improvement as inflation recedes and the path of monetary policy comes into view.

Inflation is receding and real interest rates are climbing in EM after a year of tightening monetary policy.

Emerging market valuations appear attractive, but country-specific risks can be critical to monitor amid global inflation and rising interest rates.

The varied responses of individual countries to global inflationary pressures have contributed to elevated real-rate differentials between developed and emerging markets.