Goldman Sachs sees a supportive backdrop for emerging markets into year-end, underpinned by easier global financial conditions, resilient growth, and supportive capital flows. The bank lifted its 12-month target for the MSCI Emerging Markets Index to 1,480, citing stronger earnings momentum and improving investor sentiment.
Goldman also expects emerging-market currencies to outperform their G10 counterparts as carry trades and cyclical dynamics favor higher-yielding assets.
- see relative value in EMFX as policy easing cycles are already advanced and external balances remain resilient
The bank’s constructive stance reflects confidence in both macro and micro drivers: robust corporate earnings, healthier balance sheets, and structural growth themes. It suggests investors position for further upside in EM equities and currencies into 2026, using dips to build exposure.
