Emerging Markets: Near-Term Uncertainty Matched with Long-Term Opportunity

While the pandemic has increased near-term risk, the rise of innovative and value-added industries should place the future trajectory of emerging markets on more stable footing, Daniel Graña and Matt Culley argue. Disparate responses to the global pandemic are resulting in varying near-term outlooks for emerging market (EM) countries. Increasingly, the legacy EM drivers of offshoring and economic convergence are being eclipsed by innovation. Despite changes to tech sector regulations in China, we believe authorities continue to recognize the role that tech companies play in increasing efficiencies and providing needed services.