Where are the opportunities and risks for EMs?

Rob Drijkoningen, global co-head of emerging markets debt at Neuberger Berman, takes a closer look at the drivers of the EM recovery.

Emerging markets (EM) have surprised on the upside and are now growing at the fastest pace in almost three years - with the recovery largely driven by Brazil, Russia and China. Main drivers behind this acceleration include the rebound in global manufacturing, higher commodity prices, OPEC commitment to cutting oil production and continued strong credit growth in China. As such, EM growth appears to be driven by external rather than domestic factors - as EM economies continue to move through a deleveraging cycle. We expect the positive upturn to continue for upcoming quarters. Goldm...