The World Bank's Global Economic Prospects report, released Thursday, highlights a fragile outlook as inflation, trade disruptions, geopolitical tensions and policy uncertainty weigh on momentum.

The global economy is expected to stay stuck at 2.7% growth in 2025-’26, a pace too weak to drive real economic progress.

Emerging markets, which power 60% of global expansion, are no longer closing the gap with advanced economies as quickly as they once did.

Yet, some are bucking the trend, with a few poised to grow above 5%, offering rare opportunities for investors in an otherwise sluggish environment.

Argentina's Rebound Under Milei's Reforms

Argentina's economy is staging a comeback, with GDP expected to expand 5% in 2025 and 4.7% in 2026. This sharp rebound follows two years of contraction, driven by a steep currency devaluation and trade imbalances.

"Argentina has seen significant improvements in activity in commodity-related sectors, including agriculture, energy and mining," the World Bank said in its report. The country's trade surplus has also grown, helped by a sharp drop in imports following the peso's depreciation.

President Javier Milei's sweeping economic reforms ? focused on slashing government spending, deregulating industries, and stabilizing inflation ? are beginning to take hold.

Investor confidence is returning, fueling a 78% surge in the Global X Argentina ETF over the past year.

The fund has already attracted more than $700 million in inflows since mid-January 2024.

Indonesia: Stable Growth At 5.1%

Indonesia, Southeast Asia's largest economy, is expected to grow 5.1% in 2025, supported by strong domestic consumption and exports of palm oil, coal, and other commodities.

Despite solid economic growth, the iShares MSCI Indonesia ETF has struggled, posting a 14% decline over the past year.

This weakness reflects concerns over global commodity demand and capital outflows from emerging markets.

Philippines: A 6.1% Expansion Fueled By Services

The Philippines is on track for 6.1% GDP growth in 2025, according to the World Bank. This growth is fueled by its booming services sector, particularly business process outsourcing and remittances from overseas workers.

Government-backed infrastructure spending is also providing a lift.

Yet, the iShares MSCI Philippines ETF (EPHE) has underperformed, slipping 4.6% in the past year.

Vietnam's Manufacturing Strength

Vietnam is expected to be one of the fastest-growing economies in 2025, with a projected 6.6% expansion.

"Vietnam's growth spell was both transformative and inclusive," the World Bank said, noting the country ranks among the top emerging markets in achieving sustainable development goals.

The manufacturing sector remains the backbone of Vietnam's economy, benefiting from foreign direct investment and a shift in global supply chains away from China.

However, the VanEck Vietnam ETF (VNM) has struggled, dropping 11% over the past year, reflecting broader volatility in emerging markets and China’s economic slowdown.

India: The Growth Powerhouse

India, the world's fastest-growing major economy, is expected to expand 6.7% in 2025. Though slower than the 8.2% growth recorded in 2023, the country's economic engine remains strong, powered by resilient consumer spending and steady services activity.

Higher inflation and slower credit expansion have dampened urban consumption, but long-term fundamentals remain intact.

The iShares MSCI India ETF gained 4% over the past year, outperforming many other emerging market funds.

Investors continue to back India's growth story, with over $800 million of inflows over the past year.

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Name	Total Return (3?)	Total Return (YTD)	Total Return (1Y)	Total Return (5Y)	Total Return (2024)	Total Return (2023)	Fund flows (1 Year) ? USD mn
Global X Argentina ETF	24.86%	4.84%	78.24%	252.05%	63.46%	53.64%	727.51
VanEck Vietnam ETF (VNM)	-8.47%	-1.61%	-11.41%	-24.27%	-11.15%	15.01%	-71.93
iShares MSCI India ETF	-9.87%	-3.02%	4.09%	53.12%	8.63%	17.16%	867.22
iShares MSCI Philippines ETF (EPHE)	-14.24%	-1.96%	-4.66%	-20.87%	-1.41%	1.27%	-0.32
iShares MSCI Indonesia	-16.02%	-0.65%	-14.01%	-20.57%	-13.02%	2.56%	-98.18

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