Political stability in emerging markets is good news for debt investors

FOR most of 2024, the global backdrop has been supportive of emerging-market debt, despite rising geopolitical tensions.

More than 70 countries – representing more than half of global gross domestic product – undergo pivotal elections this year, and while geopolitics remains a headwind, election outcomes in key emerging markets thus far should provide some level of comfort for investors.

First, in a welcome break from the past, elections have generally been free and fair, with no major violent events – Venezuela being an exception, though it is unlikely to cause contagion in the region beyond immigration issues for the US.