3) Geopolitical risks Happenings in the Middle East, retaliations between the West and Russia – all these could raise the volatility in commodity prices, affect global trade as sanctions continue to be hurled from both sides, and quite possibly, economic activity. In addition, geopolitical risks could lead to “flight-to-quality” trades, which could adversely affect EMEs.
4) Natural disasters These could affect the domestic supply chain of food and other important commodities and exacerbate supply of power. These can directly feed into our inflation and growth dynamics. Normalization of monetary policies in advanced economies, geopolitical risks, and natural disasters – these are some of the major risks that bring about uncertainty in our operating environment.