Global economic growth spurs emerging market recovery

7 min read 9 Jul 21

Summary: As global economic growth gathers pace and investors search for higher yields, we believe emerging market (EM) debt is an increasingly attractive source of potential income. Many EMs appear well-positioned for the period ahead, as economic growth is likely to support credit fundamentals, while output gaps are expected to keep inflation under control. Stronger current accounts than in 2013 are also likely to mitigate the potential effects of US tapering.

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By M&G Investments

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