This brought to you by Capital Group.

Capital Group | Outlook 2023 : Emerging Markets Debt, a source of yield ?

Emerging Debt, Yield

The global macroeconomic backdrop has been the main driver of emerging market (EM) debt returns in 2022 and this looks set to continue in 2023. There are three main driving forces within this: tighter financial conditions led by the US, a stronger US dollar and weak global growth.