Challenges in emerging markets unlikely to be quickly reversed, says Draghi

European Central Bank president Mario Draghi on Thursday said the difficulties faced by emerging markets are unlikely to ease any time soon amid a slowdown in China.

Concerns over China's flagging economy have caused market volatility in recent weeks. The weakness in emerging markets, caused by China and lower commodity prices, prompted the ECB to downgrade its estimates for economic growth and inflation.

“It’s unlikely that these challenges are going to be quickly reversed,” Draghi said.

He added that the People's Bank of China will need to continue reforms to ensure convertibility of it currency. The PBoC devalued its yuan on 11 August, which has since affected turbulence in international shares.

"It's true that volatility is higher," Draghi confessed.

He said the upcoming G20 is going to be all about China. “We do expect to have much more visibility than we do today in the coming days in Ankara. That is going to be one of the major themes of the meetings.”