Kris Sookdeo
Analyst II (Research)
[email protected]
Subira Toppin
Analyst II (Research)
[email protected]
Emerging Markets
As has been the trend, the economic performance of the
emerging markets has outpaced that of the developed markets.
However, this performance is continuing to slow primarily as a
result of weaker commodity and raw material demand from the
developed economies. Growth in 2013 is forecasted at 4.5% for
the emerging markets.
Economic activity in the emerging markets is expected to
have expanded by 4.9% (year on year ) in 2012 with
growth of 4.5% forecasted for 2013. As has been the trend,
the economic performance of the emerging markets has
outpaced that of the developed markets. But economic growth
is continuing to slow, declining from 7.5% (y/y) in 2010,
primarily as a result of weaker commodity and raw material
demand from the developed economies.
The JP Morgan EMBI + Index, which charts the spread
between emerging market fixed income securities and US
Treasuries, reflects the events and impact it had on the
emerging markets. For the period of review, it was largely
affected by concern over the end of quantitative easing in the
United States.
16
Caribbean Investment iQ December 2013
Figure 11
Source: Bloomberg, First Citizens Research and Analytics