Emerging Markets Eclipse Developed Markets

05 Jan, 2016 by Dwarka Lakhan

Print this article Font size -16+

The evidence of stronger emerging market fundamentals is indisputable. Here are some of the

main reasons why emerging markets are poised to overtake developed markets in terms of

relative importance for investors.

Emerging markets will grow faster than developed markets for decades to come
The investment universe of emerging markets will be larger than that of developedmarkets
The younger demographic of emerging markets, combined with their growing middleclass, will fuel increased domestic consumption and infrastructure development, therebyaccelerating economic growth
Higher developed market debt will stifle developed market growth while lower emergingmarket debt will benefit emerging market growth
Higher emerging market foreign reserves will reduce emerging market dependency ondeveloped markets and allow them to withstand currency shocksEmerging markets have outperformed developed markets over the long-term

Click here for an info-graph on Emerging markets vs Developed Markets

Dwarka Lakhan

Dwarka Lakhan is a pioneer in emerging markets journalism in Canada. His first emerging markets article, “Africa Joins Ranks of the Emerging,” appeared in Investment Executive, Canada’s leading newspaper for financial advisors, in September 1994. Since then he has written hundreds of articles on the full spectrum of emerging markets and has conducted more than two thousand interviews with emerging and frontier markets investment professionals.