Emerging Markets' 'Pretty Negative Environment' to Continue, Nomura's Subbaraman Says

The video discusses the challenging environment for emerging markets (EM) due to rising US bond yields, a stronger dollar, and slowing EM growth. It explores how central banks in Asia might respond, with varied approaches expected across countries like India, Indonesia, and the Philippines. The video also examines the implications of current account surpluses and deficits, highlighting that while some Northeast Asian countries are insulated short-term, their long-term growth prospects may be weak. Conversely, countries like the Philippines and Indonesia show potential for long-term growth due to strong investment. The Philippines is noted for economic overheating, driven by strong domestic demand.

In what ways can current account surplus countries be insulated from short-term pressures?

What are the potential long-term growth prospects for current account deficit countries?