The external backdrop for EM has shifted abruptly – the soft-landing pro-risk environment and pricing of non-recessionary Fed cuts has given way to concerns around tariff risks (and the likelihood of retaliatory action), higher-for-longer US rates and a strong US dollar. This sets the stage for a challenging EM backdrop in 2025.
In this week’s podcast, Ehsan Khoman, Head of Research – Commodities, ESG and Emerging Markets (EMEA), discusses MUFG’s emerging markets 2025 outlook which suggests that choppy external headwinds in 2025 puts the onus on EMs to stand on their own feet. Those that rely on solid fundamentals and domestic policy support to deliver performance, are set to lead.
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