Emerging markets outlook: Geopolitical shifts pave way to new global paradigm

Commodity exporters set to benefit from inflation

Risks are said to be on the rise in emerging markets as countries struggle to manage accelerating inflation and a resurgence of Covid-19 cases threatening an already uneven recovery across the globe.

Meanwhile, on the geopolitical front, "tectonic" shifts are underway, according to Polina Kurdyavko, head of emerging markets at BlueBay Asset Management. "On China, a new geopolitical landscape is being formed. The withdrawal of troops from Afghanistan and a military alliance between US, Australia and UK are all part of a long term, strategic focus on countering China's regional influence in our view," she said. "Against these top down thematic factors, a number of countries will have significant domestic developments; policy shifts in Argentina and Tunisia come to mind, as well as e...