Emerging Markets Update
Below is a selection of emerging markets-focused stories from our online service and weekly Emerging Markets Monitor publication:
CEE: Government Spending Unable To Halt Slowdown
Government spending will play a smaller role in driving growth in emerging Europe over the coming years. Central European governments will remain committed to meeting EU fiscal targets, despite low debt loads. Hungary and Turkey will pursue a risky strategy of fiscal expansion, while government spending in Croatia and Slovenia will drag significantly on growth.
China: Rebalancing A Long-Haul Campaign
Given our expectations for the Chinese government to adopt a mix of growth-supportive measures and harder-hitting reforms, we have upgraded our 2015 real GDP forecast to 6.7% from 6.0% previously.
Brazil: Further Room To Run For Stocks
In the coming months, Brazilian equities will continue to benefit from investor optimism over the potential for a change in government following the October presidential election.
Syria: US To Conduct Air Strikes Against IS
The US will conduct air strikes against jihadist group Islamic State in Syria in the coming weeks. However, the group will remain a resilient fighting force over the coming years.
Equities A Mixed Bag
Most African equity markets performed well during the first eight months of 2014, but Kenya is the only market set to continue rallying.