Malaysia scored at top higher economic expansion than peers, according to a Bloomberg survey of economists. Top ten economies on the scorecard, five are from Asia, including China, the Philippines, Thailand and Korea.
Malaysia, Russia, China, the Philippines and Colombia top the scorecard among 20 developing economies in a Bloomberg analysis
Indonesia is dropped from the top three to eleven, Turkey went from top five to bottom of a list of attractive emerging markets in the past six months as economic growth prospects weakened.
The ranking is based on a range of metrics, including predictions for gross domestic product and the current account, sovereign ratings and stock and bond valuations.
Here’s how the scorecard is compiled
- Selected economies are either in the MSCI Emerging Markets Index or a Bloomberg Barclays measure tracking EM local-currency government bonds
- Valuations are computed based on real yields, price-to-earnings ratios for MSCI’s equity gauges and real effective exchange rates
- The numbers are Z-scores that measure deviations from the average of the economies covered in the case of GDP, current-account balances, ratings and real yields. The Z-scores for real effective exchange rates and P/E are based on historical comparisons
- For reserves, the economies that sufficiently meet the International Monetary Fund’s adequacy ratio get a zero score and those that fall short receive minus 1
- GDP growth and current account balances are from economist forecasts for 2018 and 2019 compiled by Bloomberg. Sovereign ratings are from S&P Global Ratings. Real effective exchange rates are based on JPMorgan Chase & Co. data