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