The International Monetary Fund (IMF) forecasts that emerging and developing economies will grow by 4.2% in 2025, compared to a mere 1.6% for advanced economies. By 2025, emerging markets will contribute 50.6% of global GDP and account for 66.5% of global GDP growth over the past decade (World Economics).
According to J.P. Morgan Asset Management, 2025 is marked by emerging-market equities outperforming their developed counterparts for the first time since 2020. Currently, these equities are trading at a 35% discount compared to developed markets, representing the largest valuation gap in 15 years (RBC Global Asset Management). The expected year-over-year bank credit growth is also robust, particularly in countries like India and Vietnam, where double-digit growth is anticipated.
Manufacturing activity in emerging markets is on the rise, with India attracting $19.04 billion in manufacturing foreign direct investment (FDI) in the 2024-25 fiscal year. Additionally, India’s mobile phone exports surged to $20.5 billion in 2024, up from near zero in 2016, highlighting a significant shift in global supply chains.
