Economic growth in emerging markets “continues to power ahead” despite Europe, said Mark Mobius, executive chairman of Templeton Emerging Markets Group.
Mobius, who oversees about $50 billion, said he expects economic growth of 5 percent this year for emerging markets, compared with 1 percent expansion for developed nations. He spoke at a presentation to journalists in London today.
Greece, which is scheduled to hold election on June 17, may qualify as an emerging market if the country abandons the euro, Mobius said. Other nations may become emerging markets if they leave the single-currency zone, he said.
The MSCI Emerging Markets Index has slipped 0.4 percent this year, trailing a 0.2 percent gain in the MSCI All-Country World Index, on concern that Europe’s debt crisis and slower economic growth in China will curb earnings. The developing-nation gauge is valued at 9.9 times estimated profits, down from 11 times a year ago, according to data compiled by Bloomberg.