Barclays Raises 2026 Asia Growth Outlook to 5.2% in Emerging Markets Report

Barclays said emerging market economies and assets performed better than expected since the second quarter, despite geopolitical developments and energy prices being the main drivers of market moves. According to Jin10, the Barclays research team released its latest quarterly outlook on emerging market economies and strategy, noting that the U.S. Federal Reserve’s policy cycle may create new challenges for local-currency emerging market assets, while easing tensions in the Middle East may provide room for performance. Barclays said investors were likely to focus more on differences across markets and on opportunities for excess returns driven by fundamentals. The bank said Asia remained the emerging market region with the greatest upside potential and raised its expectation for the region’s 2026 economic growth to 5.2%. Barclays added that previously feared supply-chain shocks did not trigger a region-wide growth slowdown. It said resilient exports—particularly steady technology exports—and the ability of companies and governments to reallocate energy supplies supported performance, with most economies outperforming expectations except the Philippines.