Three market-moving EM elections to watch this year

Elections in Brazil, Colombia and Hungary have the greatest potential to deliver large financial market moves this year. A shift towards more investor-friendly policymaking and improved fiscal credibility could help to lower country risk premia, with the largest upside potential in Brazil. A change in government could also allow central banks to cut interest rates further than under incumbents and, in some cases, shift geopolitical alignment close to the US and Western partners.