Developing economies to spur global growth for years to come

Developing economies will account for 70 to 75 per cent of the world's growth for the foreseeable future

Investors across the globe should properly analyse emerging equity markets as sound developing economies are set to lead global growth for years to come, but it might not be the best moment to increase exposure after their huge run-up, a veteran Schroders portfolio manager said.

Allan Conway, who manages $11 billion (Dh40 billion) in emerging equity markets, is confident about the performance of this asset class over the next two to three years. Developing economies will account for 70 to 75 per cent of the world's growth "for the foreseeable future" and, because they do not suffer from the same economic disease that plagues the developed world, their fundamentals are much better in comparison, he argued.

When the US goes for fiscal stimulus, every dollar that is spent has got to be borrowed. Same thing in Europe. China comes out with a half-trillion-dollar package and none of that is borrowed. They have the reserves," Conway, said.