Solid economic fundamentals

1. A Wealth of Reserves

Emerging market economies have come a long way from being heavily indebted countries dependent on the support of the International Monetary Fund. Today, emerging nations hold a large proportion of the world's foreign reserves, with many countries registering strong capital inflows and sizable trade surpluses.

• Current Account Trends & Official Reserves

  

• Total Official Reserves: 4.2 Tr. USD

  

  To manage the large foreign reserves they have built up over the years, many emerging nations have established sovereign wealth funds (SWFs). These SWFs are having a larger impact on capital markets than ever before.

• SWFs Around the World

  

Many investors still regard emerging markets as risky and volatile places to put their money. But the picture has been changing rapidly in recent years. With enhanced competitiveness and the support of both governments and private institutions, stability in emerging markets has increased significantly.

Compared to developed nations, emerging nations have lower levels of government debt and stronger fiscal positions. This means that governments in emerging nations have a big advantage, as they enjoy more flexibility in setting their fiscal policies to boost economic growth.

• Fiscal Balances (as % of GDP)

  

• Public Debt (as % of GDP)

  

• Private Sector Credit to GDP(%)

  

Disclaimer
The information contained in this website is intended solely to report on various investment views held by Mirae Asset Global Investments (India). Any statements made regarding investment performance objectives, risk and/or return targets shall not constitute a representation or warranty that such objectives or expectations will be achieved. Opinions, estimates, forecasts and statements of financial market trends that are based on current market conditions constitute a reflection of our judgment and are subject to change without notice. This commentary is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not necessarily indicative of the likely future performance of an investment. Any decision for investments is left to the investors. Investors shall rely on their own judgment to invest or not.