Why EM companies need to live up to expectations this year

Earnings growth is projected by some market strategists to bounce back in emerging markets in 2017 following five lacklustre years, writes James Donald, head of emerging markets at Lazard Asset Management.

Analyst surveys suggest emerging markets earnings could improve by as much as 23% this year, in contrast to 1.4% growth in 2015 and 2% contraction in 2016. As investors start to re-establish confidence in the asset class, we believe it will be especially important that emerging markets companies live up to expectations this year. The view on Asia against a challenging geopolitical backdrop Consensus expects technology companies to lead the earnings growth charge, with an estimated 28% contribution to the year's total. We expect internet companies in particular to do well, includ...