Emerging markets are in for a tough and uncertain year due to policy shifts in the United States and uncertain growth in China, JPMorgan said in its annual outlook, predicting emerging markets bond funds were in line for sizeable outflows.

“EM growth faces significant uncertainty in 2025, caught between two giants - China and the US – with policy changes in the latter potentially delivering a large negative supply shock that will have spillovers across EM,” JPMorgan said in a outlook published on Tuesday.