LONDON, Dec 28 Reuters It has been a rough 12 months for emerging markets that have seen more governments stumble into default, currencies suffer and doubledigit losses in stocks and bonds alike though many investors are optimistic that 2023 could bring some relief.

Below are the events, trends and topics investors expect to shape the outlook for emerging markets next year.

1 HIGH RATES, LOW GROWTH

A slowing pace of interest rate hikes in the United States and other major economies could set the stage for an emerging markets recovery in 2023, with a softer dollar and falling inflation providing much sought relief.

Developing economies are expected to cling to their growth differential over developed peers, but recession fears in the United States as well as Europe are casting a pall over global markets generally especially in the first half of the year.

The economic downturns along with the aggressive monetary tightening and geopolitical and commodity shocks that induce them will be temporarily painful in financial and emerging markets, said David FolkertsLandau, group chief economist at Deutsche Bank.

Recovery could be delayed if emerging central banks lack room to lower interest rates for most part of the year.

2 CHINA REOPENING

China39;s reopening following its COVID19 lockdowns will be bumpy, but making up nearly a fifth of global gross domestic product the prospect of a sharp upswing at a time of slow global growth is enticing.

Analysts expect a sharp…