Emerging economies grew rapidly in 2021, rebounding by an estimated 6.6 percent annual rate following the pandemic-induced recession in 2020. However, GDP growth is likely to moderate this year to 3.2 percent in 2022 while inflation heats up. Incoming data on retail trade and industrial production point to a stable economic outlook in emerging markets. However, data for China and to a lesser extent Russia point to downturns in business activity and spending for those economies. Across emerging economies, inflation increased further in April, driven largely by rising food and energy prices. With inflation well above central bank targets, monetary policy is expected to continue tightening.