The ratings agency now projects real GDP growth at 3.8% next year, down from its previous forecast of a 4.1% expansion.

"The downward revision to growth comes from all EMs (emerging markets) excluding China and Saudi Arabia, with most economies poised to expand below their longer-run trend rates," it said, adding that forecasts for 2024 and 2025 remain broadly unchanged, averaging at 4.3%.

While inflation in emerging markets has passed its peak or is peaking soon on the back of declining food and fuel inflation, it is still poised to remain above central banks' targets in many economies, forcing monetary policies to stay restrictive, the agency warned.

"But the deceleration in inflation--coupled with a worsening growth outlook--could bring policy easing into the agenda in several EMs, especially in Latin America, by the middle of next year," S&P said.