Emerging Markets Outlook for 2025

This document is a report detailing the outlook for emerging markets as of the New Year 2025. It provides an overview of the performance of emerging-market equities in 2024, noting a 7.7% increase through November 30, while highlighting the underperformance compared to developed markets, which saw a 21.9% increase. The report identifies Taiwan as a standout performer due to its technology sector, particularly in artificial intelligence. It discusses the anticipated volatility in emerging markets as the U.S. transitions to a new administration and outlines several positive factors for the coming year, including favorable currency performance and a widening growth gap favoring emerging markets. The report also emphasizes the diversification of emerging-market equities and the potential for growth in China, India, and South Africa, while acknowledging challenges such as tariff threats and the need for economic reforms in these regions.