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The Search for Growth
Report

The Search for Growth

What’s Next for Emerging Markets?

EIU, 2014 more...

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Editorial Rating

8

Qualities

  • Analytical
  • Visionary

Recommendation

Chasing yield in risky places is…well, risky. The US Federal Reserve is slowly tapering its monetary anesthesia, and, while the United States will have to take its medicine of rising interest rates, capital flight is delivering massive blows to emerging markets. The Economist Intelligence Unit recognizes that it’s a bitter pill for investors to swallow but, with its characteristically reassuring bedside manner, it calmly and expertly delivers its prognosis: Emerging markets have had a shock to the system, but they’re far from terminal cases. getAbstract highly recommends this concise and forward-looking report to global investors.

Summary

The developed world’s financial crisis of 2008 was the developing world’s gain. The West pumped vast resources into stimulus packages, dragging developed-world interest rates to record lows. Seeking higher yields, investors flooded into rapidly growing emerging-market economies. However, at the first hint in 2013 that the US Federal Reserve was preparing to taper its quantitative easing, capital took flight. As markets anticipated higher returns in developed countries, emerging-market yields slumped, and investors sought safer havens for...

About the Author

The Economist Intelligence Unit is an independent research and analysis unit.


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