Emerging Markets
The Emerging Markets (EM) are characterised by high growth dynamics. However, there are also risks to consider.
What distinguishes the Emerging Markets?
Emerging Markets refers to countries that are typically undergoing a transformation from a developing to developed or advanced economy. This convergence and modernisation process opens up great market potential, and Emerging Markets exhibit high growth dynamics. At Raiffeisen Capital Management, we believe that a broadly diversified fund portfolio should also include investments in the Emerging Markets over the medium to long term – if the investor is willing to bear the associated risk. Positive factors are low debt, moderate monetary policy and, as previously mentioned, the potential for strong growth, whereas the economic structures and political systems in these countries are often still in flux. Therefore, Emerging Market funds generally exhibit elevated volatility.
Emerging Markets Outlook
Emerging equity markets had a strong start to 2026, outperforming developed markets significantly, but were held back by the war between the US, Israel, and Iran in March. The impact of the war is difficult to assess, as various scenarios are possible, with energy-dependent emerging markets likely to be particularly affected.
Despite careful research, the statements contained herein are intended as non-binding information for our customers and are based on the knowledge of the staff responsible for preparing these materials as of the time of preparation. They are subject to change by Raiffeisen KAG at any time without further notice. Raiffeisen KAG assumes no liability whatsoever in relation to this document or verbal presentations based on such, in particular with regard to the timeliness or completeness of the information presented and the sources of information, or in respect of the accuracy of the forecasts presented herein.