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Mind the Gap: Emerging Markets Growth Gap Widening

19 MAR 2018
TOPIC: Regional Analysis

With emerging markets (EM) economies expected to expand at more than double the pace of developed markets, the widening growth premium is providing an attractive backdrop for both equity and credit investors, according to Katie Koch of Goldman Sachs Asset Management. The drivers behind EM’s growth include both macro and micro factors. Not only are EM countries in stronger fiscal shape — many countries are running current account surpluses —but investors also have access to deeper and more diversified financial markets. One case in point is India, which stands to benefit from favorable demographic trends, significant reforms and an attractive equity market.  

India is basically where China was back in 2000. We think India is going to have the strongest GDP growth of any emerging economy over the next ten years.

- Katie Koch

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