18.09.2014 - Commodities Alone Can't Determine Economic Success In Emerging Markets
Fixed-income investors often divide emerging markets into commodity exporters and commodity importers. We think this overlooks an important reality: commodity wealth is not the sole — or even the most important — driver of EM performance. It’s certainly true that a decade of increases in energy, metal and agriculture prices have swelled national incomes in commodity-rich countries in Latin America, Europe, Africa and Central Asia. As expected, commodity-rich countries such as Venezuela and Russia saw a boost in their terms of trade — the relative difference between import and export prices — and, consequently, their real income. Turkey, South Korea and other commodity-dependent countries, on the other hand, took a hit...........................................Full Article: Source
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