Better times on the horizon for emerging markets

Fundamentals and macro

Emerging markets are in transition as they work through the structural shocks left by the Covid pandemic and Russia’s invasion of Ukraine.

Recent conditions have been challenging as investors have reduced risk in the face of rising global inflation, tightening monetary policies from central banks, and slowing global growth. However, as we enter a new cycle with expectations of lower inflation and an easing US dollar, EMs will be well-positioned for the period ahead. China, as always, is set to play a key role for EMs more broadly. Investors increasingly look to emerging markets for higher returns Although the relaxation of Covid restrictions has already led to a surge in cases (a trend that may continue for several...