Looking ahead, the geopolitical backdrop could pose new questions for some EM issuers and opportunities for others. Shifts in trade dynamics, fiscal priorities and geopolitical strategies could introduce volatility to global risk assets, including EMD. Key Points Many EM countries have shown a remarkable commitment to fiscal discipline, with improved budget management, lower deficits and enhanced debt sustainability. Fiscal performance will be a key risk for many countries and continues to be a key driver of performance differentials between countries in the EM universe. Coupled with the adoption of prudent and effective monetary policy, many economies find themselves in a stronger fundamental position compared to the past.