Rising dollar strength and tight financial conditions to impact emerging markets in 2025: Maneesh Dangi
«I guess 2025 will perhaps not see acceleration in growth slowdown, but more of the same of 2024 would likely continue, that is how I kind of think of how macro would evolve,» says Maneesh Dangi, Macro Mosaic Investing.
So, tell me, is it going to be as happy in the year ahead or not because the macros definitely have gotten wobbly, some of it is already in the price in the year gone by, but what is lined up ahead?
Maneesh Dangi: I guess in 2024, the macro sort of evolved, surprisingly that US continued to stay strong, but India certainly weakened a lot more than what most of us anticipated. And I guess since these growth trends to last for longer than six-eight months, it is more likely than not that India would continue to stay in a slow lane. At some point in time, hopefully US slows and then gives us breathing space to cut rates and ease regulatory environment, and of course, that perhaps would put a floor to the growth slowdown. So, I guess 2025 will perhaps not see acceleration in growth slowdown, but more of the same of 2024 would likely continue, that is how I kind of think of how macro would evolve.
But one of the biggest challenges per se or biggest important things to watch out for at the end of this year has been the kind of dollar strength that we have seen. I mean, 108.5 thereabouts. What happens to that because that clearly has a big impact whether it is flows, whether it is rupee, whether it is a lot of those domino effects.
Maneesh Dangi: Yes, so in a sense it is born of the fact that US did not
