Emerging Markets
The Emerging Markets (EM) are characterised by high growth dynamics. However, there are also risks to consider.
Learn more about following Emerging Markets
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.
Eastern Europe
CE3 – Poland, Czechia, Hungary-Update
Poland’s central bank sees higher growth than before, interest rates are being cut in Czechia again, and in Hungary, Prime Minister Orban is getting a new political antagonist.
Türkiye-Update
The opposition is racking up landslide victories in the local elections. The thawing with the USA is continuing (for now) and the central bank surprised with another interest rate hike.
Russia-Update
President Putin wins the presidential election as expected. The International Monetary Fund (IMF) again raises its growth projection for Russia, which is to expand more rapidly than many developed industrialised countries in 2024.
Asia
China-Update
China’s growth surprised on the upside in the first quarter, but doubts about the strength of the economy remain. The International Monetary Fund (IMF) is worried about the growing debt and about the potential for an aggressive export policy.
India-Update
India continues to grow rapidly. The equity market can look back on very good performance in the last fiscal year, and the ruling BJP can look forward to a victory in the parliamentary elections.
Brazil
Brazil-Update
Brazil’s shares lose ground in March, against the global trend and as the only market in Latin America. The economic data remain mixed and still show a sluggish economy.
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.