Emerging markets Outlook 2021

Emerging Market’s countries often have rather unstable governments and economies which are, in addition, highly dependent on a few industries. Much of the volatility is due to the great relevance that volatile goods (food and energy prices) have on the consumer price index baskets. These countries frequently experience high levels of inflation, deflation, or currency devaluations and all this political, social, and economic instability contributes to bringing about volatility in financial markets.