Emerging markets are important for the world economy. As countries continue to grow their GDP and learn to sustain their own economies, businesses all over the world invest trillions of dollars in those markets. Companies realize that early entry in an emerging market can secure growth for years and even decades to come. Unfortunately, the world’s largest emerging markets are not looking so hot right now.
“EM economies are failing to gain traction in a context of subdued global growth and uncertainty around Fed rate hikes,” according to Deutsche Bank research.
Speaking about Turkey, one of the world’s most vulnerable markets, Deutsche Bank says, “growth is faltering, high inflation prevents monetary easing” and there’s “heightened political uncertainty with June general elections.” The bank also notes that Brazil, Russia, China, and Mexico are all experiencing slow downs, mostly caused by the steep decline in oil prices.
It’s not all bad news, India is expected to see growth accelerated this year with low inflation which will allow for monetary easing in the near-term. India is also being propped up by investors who are providing positive infrastructure in the countries technology sector.
Check out Deutsche Bank’s emerging countries map below: