Navigating Emerging Markets Through the Ballot Boxes

   

Against the backdrop of a crowded and potentially pivotal year for global elections, what will be the impact and will they open a door to emerging markets for investors in search of higher growth potential and diversification?

Geopolitics in an election-heavy year

2024 will see 40 countries going into national elections, representing over 40% of the global population (around half of the world if we also consider European parliament elections).

The outcomes of these elections could affect the future economic path, and international relations, of established leaders such as US/Europe and of emerging powers for instance in Asia and Latin America.

Increasingly, internal politics in emerging powers such as China, India, and Latin America will shape global geopolitics. In our view, investors looking for higher returns in emerging markets should assess country-specific factors such as political stability, public finances and economic growth.

 

Opportunities in a fragmented world

We are optimistic about the prospects for emerging markets in 2024. Following the rally in 2023, investors seeking opportunities should consider turning their attention to emerging regions, leveraging on their growth advantage and robust local consumption and trade dynamic.

The current outlook for the asset class is increasingly favourable, with certain emerging economies strategically positioned for growth. Projections indicate that the growth premium favouring emerging markets over developed markets is expected to expand further.

Key themes to keep an eye on 

 
    
 

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