UBS On-Air: Market Moves Top of the Morning: The lines separating developed and emerging markets are blurring
Aug 5, 2025
Alejo Czerwonko, CIO for Emerging Markets Americas at UBS, dives into the evolving landscape between developed and emerging markets. He challenges traditional categorizations based on GDP and industrialization, suggesting that the lines are increasingly blurred. Alejo highlights the need for investors to adapt their strategies, considering the potential in countries like China and India. He also emphasizes the importance of diversification to navigate capital market dynamics and volatility. Tune in for valuable insights that could reshape your investment approach.
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Improved Inflation Control in Emerging Markets
- Inflation and macro instability are no longer typical of emerging markets due to improved policies.
- Median inflation in emerging markets was just over 3% last year, showing stability improvements.
Emerging Markets Have Advanced Industries
- Economic structure assumptions about emerging markets being industrially weak are outdated.
- Brazil's aerospace and Taiwan's semiconductor industries prove emerging markets have advanced sectors.
GDP Isn't Defining Market Status
- Traditional metrics like GDP per capita or poverty rates don't clearly differentiate emerging from developed markets.
- Examples like UAE, Korea, and Chile show wealthy countries can still be classified as emerging markets.