An uncertain period for emerging markets

“A resumption of construction work for the East Coast Rail Link, Light Rail Transit 3 and other mega projects should pull productivity growth back up, starting from the third quarter this year,’’ said Pong Teng Siew, head of research, Inter-Pacific Securities.

A period of uncertainty has fallen on emerging markets (EMs) in the wake of less than dovish comments among Federal Reserve officials.

Contrary to expectations for a further pause and a later cut in interest rates, the latest Fed minutes showed possible rate hikes later this year if the US economy remains in good shape.