The Emerging-Market Debt Tool Kit
Today, three decades after the phrase “emerging markets” was coined, the comparative strength of developing economies is one of the dominant themes in global investing. Emerging market (EM) countries account for about 85% of the world’s population and roughly half its gross domestic product (GDP). Thanks to a virtuous cycle of conservative fiscal policies, credible monetary policies, falling inflation and faster growth, EM sovereign credit metrics are now stronger than those of most developed economies. The International Monetary Fund expects emerging countries’ gross-debt-to-GDP ratio to fall below 30% by 2017, compared with 130% in the developed world.