Emerging Markets to Rebound Strongly Over Long Term
‘Infrastructure Spending and Personal Consumption to Drive Regional Growth,’
Says J.P. Morgan Asset Management
Emerging market economies are set for a strong recovery over the long term, as the positive effects of globalization begin to manifest themselves, says a senior executive with one of the world’s premier financial institutions.
For many investors in the Middle East, the myth of de-coupled economies – one in which North America and Asia could be suffering economic recession, for example, while the Middle East grew briskly – has been a hard financial lesson.
But Claire Simmonds, London-based Vice President with J.P. Morgan Asset Management, believes that there is an upside to globalization and that it is the key structural underpinning of the coming economic rebound in the world’s emerging markets.
“The Middle East markets are not immune to the aftershocks of the global economy,” says Simmonds, “but they remain fundamentally solid, based on predicted continued growth. Regional capital markets have a great deal of ‘fire power’ that they didn’t have, say, five years ago.”
Simmonds argues the structural case for emerging markets rests on two pillars, specific to the dynamics of long term economic development: infrastructure and personal consumption. These two themes are evident in the Middle East, with domestic consumption a key indicator evident across the region, as much as widespread infrastructure spending, particularly evident in Gulf countries.
Taking a long term view on markets and not being afraid to pose a contrarian view relative to consensus has enabled J.P. Morgan to make great strides across a variety of regional products.
The J.P. Morgan Asset Management team responsible for the Middle East sits within the broader Emerging Markets Equity Team at the firm meaning regional investors benefit from an investment team which combines local knowledge with a global perspective.
J.P. Morgan Asset Management is part of J.P. Morgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With US$1.1 trillion in assets under management (the Asset Management client funds of J.P. Morgan Chase & Co. as at December 31st 2008) and offices in 40 locations around the world, J.P. Morgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
