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However, some market observers warned that investors may be becoming too reliant on higher-yielding and riskier investments in the ongoing search for yields in a low-rate global environment. With some of the world’s largest central banks moving to normalize monetary policies, analysts argued that the rally in emerging market assets may losing speed.
Nevertheless, many still believe in the emerging market story as inflation remains weak and the global economic expansion continues to pick up pace.
The International Monetary Fund recently raised its forecasts for global growth to 3.6% for 2017 and 3.7% for 2018, compared to the 3.2% expansion recorded in 2016. Looking at emerging countries, the IMF projects a 4.6% growth this year and 4.9% in the next, compared to 4.2% last year.
For more information on the developing economies, visit our emerging markets category.