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Outlook for emerging markets still positive but returns may be muted

Three key factors could potentially weigh on the performance of EM equities in 2018.

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China's economy is projected to expand at a robust rate in 2018. However, the pace of growth is expected to decelerate to 6.4 per cent from 6.8 per cent in 2017, given a tightening of monetary conditions.

THE outlook for emerging market (EM) equities remains positive, albeit we expect returns to be more modest in 2018.

The MSCI Emerging Markets Equity index has returned 35 per cent (USD return) year-to-date, benefiting from attractive valuations and investors' relatively light positioning

sentifi.com

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