August 2026 – EM reinvestment intensity is at a 10-year high, but its two legs are of different ages: a decade-long climb in research and development, and a recent recovery in capital expenditures. That shift is closing the historic gap in the reinvestment mix between EM and DM, pointing to a more mature and competitively sophisticated EM corporate sector than existed 10 years ago.

Speaker

• Isaac Macieira-Kaufmann, Senior Analyst

EM reinvestment is at the highest rate in a decade, but a new kind of investment cycle is underway. The composition of the reinvestment is materially different than the past, and that composition matters just as much as the high rate.

EM refers to Emerging Markets. DM refers to Developed Markets.

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Sources: Bloomberg; Seafarer.