Why China consumer is key to returns

EMs

Emerging markets should remain an important driver of global economic expansion, even as the pace of EM growth slows from the torrid rates of recent years.

We expect the growing purchasing power of China’s consumers to provide an economic engine for the Asia region and other EMs, in turn fueling the growth of a middle class elsewhere. Over the past year, China has taken steps to align with the reflationary efforts of developed countries and has also taken action to spur consumption within its own borders. EMs have come into their own over the past decade but in a global economy, they cannot “go it alone.” The interdependencies among EMs and developed markets are complex and have significant implications for the global economy. To set the...