Reforms, Volumes and Re-Rating: Unlocking the Next Growth Chapter for Emerging Markets
Over the past two decades, performance data from the largest emerging markets has demonstrated that GDP growth, while essential, is not by itself enough to deliver sustained equity market outperformance.
Emerging markets are entering a new phase where reforms, not just growth, are the real drivers of equity outperformance. While GDP expansion sets the stage, history shows that without credible governance, regulatory, and market-access reforms, valuations and liquidity fail to keep pace. This whitepaper explores how reform leaders such as India, Saudi Arabia and Vietnam have unlocked lasting re-ratings, while others like China, Nigeria and Pakistan highlight the costs of stalled or reversed initiatives. With a new reform wave gaining momentum across Asia, the Middle East and frontier markets, investors have a timely opportunity to identify where “1+1 can be greater than 2” – when growth and reforms combine to deliver durable market leadership.
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