Emerging markets will continue to enjoy robust growth driven by strong domestic demand and investments, Mirae Asset Global Investments Group has stated in its Emerging Markets Outlook in 2011 report.

In 2011, domestic consumption will continue to be a significant driver of economic growth in emerging markets, although a slowly recovering global economy will also boost the export sectors, Mirae Asset’s report said.

The report found there could be a rebound in the USD in the coming year as the US economy shows signs of gradual recovery, but this would not derail a long term structural uptrend in emerging market currencies.

More capital controls are likely to be implemented by emerging markets if hot money flows continue to put appreciation pressures on their currencies and fuel asset price inflation, it added.

Wilfred Sit, head of emerging markets investment strategy at Mirae Asset Global Investments, said: “Economic growth in emerging markets will continue to lead the world, driven by robust domestic demand and an improving export outlook. Emerging equities are expected to remain on a long term uptrend as global investors continue to allocate more assets to emerging markets.”

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