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Inflection point
Weekly investor research
10 October 2016
The latest IMF World Economic Outlook confirms that 2016 will see a strong pick-up in Emerging Markets’ (EM)s growth
premium versus Developed Markets (DM). QE policies in DM have inflicted considerable financial tightening on EM economies
over the last few years, but the EM growth premium is now picking up and should continue to do so for several years. Higher
relative and absolute EM growth rates should in turn lead to more inflows and stronger investment returns. The case for EM
is also supported by much better valuations, stronger currencies and very healthy positioning.