Emerging Markets

Emerging Markets Eclipse Developed Markets

The evidence of stronger emerging market fundamentals is indisputable. Here are some of the

main reasons why emerging markets are poised to overtake developed markets in terms of

relative importance for investors.

  • Emerging markets will grow faster than developed markets for decades to come
  • The investment universe of emerging markets will be larger than that of developedmarkets
  • The younger demographic of emerging markets, combined with their growing middleclass, will fuel increased domestic consumption and infrastructure development, therebyaccelerating economic growth
  • Higher developed market debt will stifle developed market growth while lower emergingmarket debt will benefit emerging market growth
  • Higher emerging market foreign reserves will reduce emerging market dependency ondeveloped markets and allow them to withstand currency shocksEmerging markets have outperformed developed markets over the long-term

Click here for an info-graph on Emerging markets vs Developed Markets