How QE2 will help EMs

ON EMERGING MARKETS

Jupiter's Kathryn Langridge believes the Fed's latest QE programme will have a positive effect on global emerging markets.

In general, global emerging markets are financially and fiscally strong. The structural underpinnings of growth are sound and have enabled the majority of global emerging market economies to perform resiliently during the crisis and emerge more strongly after. Economic growth is generally robust and the drivers of growth in key markets are increasingly balanced towards domestic factors including rising levels of consumption. Corporate balance sheets are healthy and earnings growth has accelerated in the course of 2010. The banking systems are well capitalised and a new credit cycle is...