Emerging markets and developing economies are defying the overall global economic slowdown and are expected to grow by 3.6 percent in 2023 and 3.8 in 2024, relatively stable growth compared to 3.8 percent growth recorded in 2022. Near-term activity in emerging markets continued to gain momentum in April, with another increase in the composite purchasing manager’s index. The momentum is particularly driven by pent-up services demand in Asian economies. Headline inflation continued to come down through April. Fading base effects and falling factory-gate prices point to further disinflationary pressures. On the other hand, core inflation remains elevated and may take longer to come slow decisively, particularly as service-sector activity remains strong.