Growth momentum shift to Emerging Markets continues

Two weeks ago I highlighted the fact that Indonesia has re-attained an investment grade rating, continuing the upward path it has been on since the Asian crisis derailed the Asian growth story 15 years ago. Indeed, we should expect emerging markets, and Asian emerging markets in particular to outperform developed economies. And that means overweighting EM now that the EM market correction has occurred.

Here's a BBC story on Indonesia that underscores the appeal:

Indonesia's economy grew at its fastest pace in 15 years in 2011 boosted by increased investment and growing domestic demand.

Southeast Asia's largest economy expanded by 6.5% in 2011, the highest rate since 1996.

Indonesia also regained its investment grade status last year as total domestic and foreign investm...


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