Citi's Howell Sees Positive Outlook for Frontier Markets

The video discusses the potential of frontier markets like Egypt, Romania, and Vietnam, highlighting Citigroup's positive outlook. It explains how these markets, often overlooked, can thrive as a bull market matures. The discussion covers global economic factors, such as inflation and bond yields, that favor frontier markets. Romania is spotlighted for its rapid growth, driven by European convergence and pent-up demand.

What is a defining characteristic of frontier markets?

• They are the largest markets globally.

• They are closely followed by investors.

• They are easy to invest in.

• They tend to lag early in a bull market.

How does global economic expansion affect frontier markets?

• It causes a decline in market opportunities.

• It results in lower interest rates.

• It creates inflationary pressures and higher bond yields.

• It leads to a decrease in commodity prices.

What is a potential risk for frontier markets during global financial tightening?

• A sell-off in equities.

• Higher equity prices.

• Increased investment opportunities.

• Stable market conditions.

What has contributed to Romania's economic growth?

• Isolation from European markets.

• European convergence and job shifts from Western Europe.

• A decline in consumer demand.

• A decrease in GDP.

What was Romania's GDP growth in the fourth quarter?

• 6%

• 7%

• 5%

• 8%