The argument is often made that emerging markets' expected superior economic growth to developed markets will result in better stockmarket performance. Investors certainly spend a lot of time talking to economists trying to work out what GDP growth around the world is. But does it actually matter? Arguments have also been made that over the very long term, GDP growth is not actually much of a factor in stockmarket growth. This paper looks at what the historic evidence is for the case of emerging markets, and hence whether there is any point in investors paying any attention to economists.

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