Economic Growth
Emerging economies have become the world’s growth engine and are outperforming developed markets by a wide margin.
We believe the world economy could more than double by 2050, outstripping population growth, due to continued technology-driven production improvements. The 7 largest emerging economies are expected to grow twice as fast as the developed G-7 markets, and to represent 50 per cent of global GDP in 2050, with the G-7 countries at 20 per cent.
Enhanced Liquidity
Emerging economies are becoming a much larger portion of the investment opportunity set, as these markets have witnessed exponential growth in market capitalisation. Emerging economies significantly contribute to the global economy, with an estimated share of global GDP at 60 per cent (IMF, 2025), while also driving two-thirds of global growth in the past decade, and accounting for nearly 40 per cent of global trade.
Diversification and Low Correlation
Emerging economies equities can be used as a source for diversification, when returns have relatively low correlations to the United States and other developed equity markets.
