Emerging Markets Equity Commentary | 4Q 2023

Quarterly Letter

10 min read | After a strong 2022, we expected that emerging and frontier markets would avoid an economic hangover, and this proved to be true.  Both EM and frontier countries demonstrated stronger absolute and relative economic performance, paired with moderating inflation, active and early central bank policymaking, and relatively stable currencies.  China was the primary disappointment, as its post-pandemic re-opening led to flatter-than-expected domestic activity and failed to reverberate through many countries in Southeast Asia.  Meanwhile, internal consumption across EM was broadly resilient, and the trend of emerging markets de-coupling from developed markets continued.