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Emerging markets' GDP growth rises to eight-month high: IIF
[WASHINGTON] Emerging markets' gross domestic product growth rose to its highest in eight months helped by export expansion in several countries, according to a global financial industry association.
After a modest dip in February, emerging market real GDP growth rose by 0.5 percentage points to 3.3 per cent annualized growth in March, according to a report from the Washington-based Institute for International Finance released on Thursday.
March's improvement over February comes in line with a surge of foreign portfolio inflows to emerging markets and a rebound in financial markets during an extended risk-on period during which investors have favored investments in the growing economies, the IIF said.
Aiding economic expansion was the trade component, led higher by better export growth in Brazil, India and Thailand, the IIF said.
Its analysts expect further, moderate growth from emerging markets through the rest of the year.
"Our 2016 annual EM growth forecast stands at 3.9 per cent, just 0.6 (percentage points) above the March Tracker reading," the IIF said in a statement, "so while we expect there to be some more improvement ahead, we do not see signs of a more robust pick-up."