Since 2000, emerging-market countries have recorded substantially higher economic growth rates than their "developed" peers: Between 2000 and 2009, the average growth differential amounted to a whopping 4.3 percentage points per annum. Starting in 2009 however, the difference started to shrink, touching a low point of 2% in 2015. Since then, we are witnessing a global re-acceleration, and emerging economies are gaining ground again. The relative performance of emerging-market equities (measured by the MSCI Emerging Markets Index ) versus their global peers (MSCI World Index ) has been tracking the changing growth differentials quite well. Going forward, the International Monetary Fund (IMF ) projects emerging economies to outgrow developed countries again. That should bode well for emerging-market assets, too.
Sources: Bloomberg Finance L.P., International Monetary Fund, Deutsche Asset Management Investment GmbH; as of 9/27/17
* International Monetary Fund (IMF) forecast for 2017 to 2020