The changing drivers of emerging-market growth

This article aims to demonstrate how emerging-market economies have evolved over time. It is worth starting by looking at how the emerging-market investment backdrop has been transformed over the last two decades.

Emerging markets have come a long way since the early 2000s.

Today:

  • infrastructure is predominantly in place (including the widespread availability of high-speed broadband)
  • technology is advanced
  • consumers are wealthier.

The confluence of these factors has resulted in changing consumer behaviours, greater consumer resilience and new categories of consumption, which have driven the rapid development of consumer-facing services industries in emerging markets.

The same three elements also make emerging markets less dependent on global-demand dynamics than they may have been historically, and allow for emerging-market growth to be more internally driven, and consumer-led, in the future.

Against this backdrop, we see significant opportunities from the changing drivers of emerging-market growth.

Furthermore, we anticipate that the Covid-19 pandemic will accelerate the technology-driven shifts that we have been seeing in recent years, and highlight the relative resilience of certain emerging markets, especially China, in the current environment.

Important information

This is a financial promotion. These opinions should not be construed as investment or other advice and are subject to change. This material is for information purposes only. This material is for professional investors only. Any reference to a specific security, country or sector should not be construed as a recommendation to buy or sell investments in those securities, countries or sectors. Please note that holdings and positioning are subject to change without notice.

This material is for Australian wholesale clients only and is not intended for distribution to, nor should it be relied upon by, retail clients. This information has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Before making an investment decision you should carefully consider, with or without the assistance of a financial adviser, whether such an investment strategy is appropriate in light of your particular investment needs, objectives and financial circumstances.

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