LDEM - Tailwinds Provide Lift For Emerging Markets Investments

• The cyclical rebound from 2020's stop-start pattern is likely to be vigorous and highly synchronized globally in 2021.
• Emerging markets are typically a levered play on global manufacturing growth. Following the initial lockdown, manufacturing growth rebounded strongly and remained resilient during the second and third virus waves.
• Dollar depreciation, the counterpart to rising EM capital inflows, increases the price of dollar-denominated EM exports and boosts the ability of EM countries to repay dollar-denominated debt.

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