Global Emerging Markets Equity Outlook 2025

Riding the megatrends

We believe three megatrends – digitisation, climate change, and demographics – will drive change in the global economy and business landscape for years to come. In this report we outline how we have invested in companies that we expect to benefit from this transformation.

Fast reading

The last few years have seen advancements in microchip technology, a rollout of cloud computing capabilities, and an increased awareness about the importance of data. We now stand on the cusp of a potential revolution in Generative AI. These developments in digitisation have the potential to greatly increase productivity – as long as enterprises adapt and embrace this change.
The application of climate science to investment strategies has not yet become mainstream. However, the scientific evidence is increasingly hard to ignore. Insurers endured the third most expensive year for natural catastrophe losses in 2024 (US$140bn) because of climate change. We believe that climate change is an essential consideration to bear in mind when assessing the trajectory of the world, as it will significantly impact individuals, communities, and businesses.
The share of the population aged 60 years and over will increase to 1.4 billion in 2030, according to the WHO. This figure is forecast to reach 2.1 billion by 2050. The ageing global population throws up a number of social, economic and healthcare implications. However, another cohort is emerging into a dominant economic force: Gen-Z makes up 30% of the world’s population and is expected to account for 27% of the workforce by 2025.