Author: NN Investment Partners
A pick-up in developed market demand growth and the increase in commodity prices have led to the best export performance of emerging markets in more than five years.
Emerging market (EM) equities and debt have performed very well so far in 2017. The stabilisation in US bond yields and the US dollar has certainly helped, but more importantly a pick-up in developed market demand growth and rising commodity prices have led to a sharp increase in EM export growth. As long as concrete protectionist steps from the US government do not materialise, most emerging markets will most likely benefit a lot from the improving global demand picture.