Why the entire EM growth recovery is not dead

Maarten-Jan Bakkum, senior strategist, emerging markets at NN Investment Partners, explains how a small group of troubled countries is responsible for the deterioration of the average growth momentum in EMs.

The gradual recovery of economic growth in emerging markets (EMs) in recent months has recently turned down again. This is disappointing, especially because we could see a broadening of the recovery since the beginning of the summer: more and more countries seemed to be slowly rebounding from the crisis. Contrarian EM move pays dividends for Premier AM The main driver of the recovery was the loose monetary policy in the US and Europe. As a result of growing capital flows, currencies in the emerging world were able to appreciate and interest rates fell. Meanwhile, we saw the firs...