Domestic consumers in EM countries are key drivers and beneficiaries of growth

EMERGING MARKETS

Despite the current uncertainty, emerging markets have outperformed the developed world decisively since bottoming out in February of 2009.

There are multiple drivers for this and we feel this trend will continue over the medium and long term. As we have pointed out in the past, perhaps the most dramatic change over the last decade has been the growing role of the consumer in the developing world. Compared with 10 years ago, when they were under pressure, domestic consumers in emerging markets are now major beneficiaries – and drivers – of growth. In the future, we believe even export-oriented countries like China will have to depend to a much greater degree on domestic consumption. In light of this, domestic consumer spe...