Emerging markets have concluded 2025 with a significant surge, outperforming major Wall Street averages. The MSCI Emerging Markets Index, which encompasses large- and mid-cap stocks from developing nations, has seen an approximate 30% increase since the start of the year.
The emerging markets’ stock indexes have hit record highs at the end of 2025. Certain countries within this group, including Greece, Chile, and the Czech Republic, have demonstrated particularly strong performances.
The Athens Composite, Greece’s primary index, has seen a nearly 44% increase over the year and is anticipated to be promoted to developed market status in September 2026.
During a roundtable event in London in November, fund managers at Ninety One, an asset management firm overseeing assets worth over $203 billion, expressed optimism about the potential for further growth in various emerging markets in 2026, reports CNBC.
Portfolio manager Varun Laijawalla referred to 2025 as a “year of change” across numerous sectors.
Speaking with the outlet, Laijawalla also highlighted that the U.S. dollar had weakened over the year following “15 years of a one-way trade.”
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This has positively affected emerging economies that depend on foreign capital, as it lowers the local currency cost of dollar-denominated debt and can boost investment inflows from overseas.
Mislav Matejka, the Head of Global and European Equity Strategy at JP Morgan, speaking at the bank’s London headquarters, predicted that emerging markets are set for a second year of outperformance in 2026.
Factors contributing to this outlook include appealing valuations, currency movements, and economic growth patterns.
The impressive performance of emerging markets in 2025 is not just a one-off event. The weakening of the U.S. dollar, which reduces the cost of dollar-denominated debt, coupled with the attractive valuations and economic growth trajectories, are all factors that are setting the stage for these markets to continue their upward trend in 2026.
The anticipated upgrade of Greece to developed market status further underscores the potential for growth in these markets.
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