China reported a record 18.3% GDP growth for the first quarter, a record since statistics have been compiled over nearly 30 years. This indicates that China’s economy is flying back to pre-pandemic levels. 2021 marks the first year in the new five year plan where innovation, the environment with strick goals on carbon emission peak and zero carbon emissions have been set.

India attracted net inflow from foreign investors for six months in a row with quarterly inflow of nearly $8 billion. Strong corporate earnings and overall good news from the latest Union budget along with strong macro numbers contributes to positive flow. Covid is hitting India hard in the new wave with 350,000 daily positives. This means it may take longer than expected to return to a pre-covid life given the fears of new aggressive mutations.

Russia is less dependent on oil revenue now vs in the past but it helps any government when a key commodity goes up 23% during the first three months of this year.  The higher economic activity helps to lift prices for key commoditites which Russia benefits from.  Russia saw an increase in inflation during the quarter, which resulted in the first rate hike in over two years.  A weaker rouble coupled with stronger commodity prices is good news for the export sector. 

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Source: Bloomberg LP