Emerging Markets: Growth Engine Turns Inward

Robeco argues that emerging markets are no longer high-beta satellites but increasingly self-sustaining growth engines, supported by innovation leadership and domestic capital formation 

• EM economies now account for ~60% of global GDP (PPP basis), with lower debt burdens ex-China and higher real policy rates supporting macro resilience.

• MSCI EM has shifted structurally: technology now represents 28% of market cap (2025), reflecting leadership in AI hardware, renewables and digital ecosystems.

• Domestic savings pools—pensions, insurers and retail flows—are anchoring equity demand, reducing volatility and reliance on foreign capital.

Is this a cyclical rebound—or the start of a more durable EM outperformance cycle? The full report details the mosaic.