Emerging market economies may look to invest in their immediate neighbourhood, rather than investing in the developed markets. If this takes off, only a fine line will separate the benefits and pitfalls from it.
While inflows will come in, growth continues to be subdued from most of the EMs, Rob Subbaraman, Chief Economist, Asia-ex Japan at Nomura told CNBC-TV18 adding that growth opportunities like in South East Asia and India.
There is a growing fear among experts that rising crude and commodity prices could derail the efforts to contain inflation, which has started moderating. Rob Subbaraman, Chief Asia Economist, Nomura feels that inflation is going to stay stubbornly high not only in India but in most of Asian countries.