Summary
- China’s economic reopening is proceeding swiftly, despite the spike in COVID-19 cases in early January.
- January witnessed a dramatic shift in the performance of growth stocks, with the MSCI Emerging Markets Growth Index posting double-digit returns.
- Consensus expectations are for a recovery in emerging market earnings in 2023, following a sharp decline last year.
- The prospect of weaker external demand has led policymakers in EMs turn to domestic demand, in particular consumption, to shore up economic growth.
For further details see:
Emerging Market Insights: Domestic Demand In Focus