The previous article from Ashay Mervyn explained why investors are drawn so intently to emergent markets and the big rewards that they offer, despite the risks. This article aims to expose some of the biggest markets to invest in and what opportunities they offer.
The world’s biggest population also generates the biggest GDP for the emergent markets as classed by Morgan Stanley. While its economy has grown at a slower pace recently it has still achieved a GDP increase of 1700% since 1992. Investors in this market could look at natural resources such as aluminium, coal and oil, as well as the traditional consumer products – especially clothing, electronics and toys.
India’s claim to be the second-largest English speaking country in the world has helped to attract foreign investors. With big leaps in economic liberalisation in the 1990s, the government has established a great market for investment opportunities in areas such as metals, construction and textiles to name just a few.
The strength of South America’s biggest nation has been in its quiet but rapid economic development. If it continues at the same pace then Brazil will soon be considered a developed, rather than emergent market and now is the best time to invest there. Big industries include aerospace engineering, cement, lumber and steel, and with the Olympics coming up no doubt the government will be pulling out all the stops to further facilitate growth from foreign investment.
The above examples are just three of the strongest emergent economies in the world, and there are countless others that have seen remarkable growth while traditional markets have stagnated. Investment today means buying in to these new areas at a far lower price than in the future, as the low price points won’t be around when the World Bank or Morgan Stanley grants these nations their well-deserved ‘developed’ status.