EM Equity Outlook Report 2025

Jan 06, 2025

We share a summary of our Emerging Markets Equity Outlook for 2025.

In this year’s report, we reflect on key developments across emerging markets (“EM”) equities and set out our thinking for the environment ahead. We cover a range of topics, including macroeconomics, valuations, earnings, styles, themes and ESG reforms, and also address the questions that have been top of mind for our clients. Over the years, we have found that focusing on the extremes makes most sense in terms of top-down factors, as it can often be a powerful indicator of future performance.

2024 was an eventful year for EM equities, and potentially a turning point where the headwinds of recent years are now reversing into opportunities for the asset class. It has also been a record year on the political front, with over half of the world’s population across more than 60 countries heading to the polls. Within the report, we reflect on the key elections and share our thoughts on any potential implications.

We also review developments within our five portfolio themes. These themes help up position our portfolios in areas of long-term structural growth, which we feel is particularly important in an era of rising geopolitical and macroeconomic uncertainty. Our detailed research helps us identify the most attractive ways to play each theme from an investment perspective, and we report on the updates we have made during the year.

After a period of substantial weakness, China’s performance has started to pick up, and we believe there is potential for further upside in 2025. This year we provide a deep dive on our outlook for the country, exploring both short- and long-term drivers for the economy and equity markets.

We focus in on other key EMs as well, notably India, Latin America and Southeast Asia, where we are seeing interesting developments as a result of global supply chain shifts. We also review sectors, including putting a spotlight on technology and consumer, where we identify extremes.

For our full report, please contact marketing@bluebay.com.

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