Emerging Markets Drive Global Growth with 20.1% Returns in 2023

Emerging markets are now the primary engines of global economic expansion, accounting for nearly 80% of worldwide growth. Their rapid development—fueled by industrialization, urbanization, and policy reforms—offers compelling investment opportunities beyond traditional developed economies.

Portfolio diversification is a key advantage, as emerging market returns often MOVE independently of developed markets. The MSCI Emerging Markets Index and S&P 500 delivered comparable returns over 23 years, but in 2023, EM stocks (excluding China) surged 20.1%, highlighting their strong momentum.

Sectors like clean energy are leading the charge, supported by improving financial infrastructure. Established banks, stock exchanges, and unified currencies are making these markets increasingly attractive to foreign investors.