We think the future for most emerging markets is brighter than generally believed. Their poor performance has been a function of close ties with troubled China, heavy reliance on exports of commodities that China consumes, and perceived vulnerability to tighter US monetary policy. However, we think China is on the road to recovery, the tide has now turned for commodity prices, and while the Fed is likely to tighten by more than most expect, the low valuations of many emerging market assets should provide some cushion on the downside. Overall, we think the prospects are typically better for them than for their developed market counterparts.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services