Outlook on Emerging Markets in 2023


January 09, 2023


Lazard's Outlook series provides a forward-looking view, over the short, medium, and/or long term, of asset classes, sectors, regions, or countries from the view of Lazard Asset Management. In this edition, LAM portfolio managers share their outlook for Emerging Markets in 2023. 


  • Emerging markets equities had to clear many hurdles in 2022 but began to recover in the fourth quarter. We expect this recovery to continue due to relatively strong growth, decelerating inflation, a weaker US dollar, and improving fundamentals.

  • After the steep drop in equity markets overall in 2022, we believe that emerging markets equities may be one of the most mispriced asset classes, with attractive valuations compared with historical levels.

  • For emerging markets debt, it would be difficult to imagine a more challenging backdrop than the one that unfolded in 2022, but we believe the outlook is now better than it has been for several years.

  • Thanks to a rare combination of elevated yields, attractive valuations, and a supportive global backdrop—including the potential for higher growth in China—we believe equity-like returns in the mid-teens are possible over the next 12 months in both hard and local currency debt.

Click here to read our Outlook on Emerging Markets in 2023.

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