Growth premium between EMs and developed markets to widen -GSAM

The widening growth premium between emerging and developed markets is providing an attractive backdrop for both equity and credit investors, Katie Koch of Goldman Sachs Asset Management says. EMs are set to expand at double the pace of their developed peers and GS is paying attention to India in particular. Koch says she expects EM equities to show double-digit earnings growth. She is also looking at the growth in consumption, noting that 86% of the world’s millenials live in emerging countries. “The drivers behind EM’s growth include both macro and micro factors. Not only are EM countries in stronger fiscal shape — many countries are running current account surpluses —but investors also have access to deeper and more diversified financial markets” (watch, runtime 02:47).