Developed economies are struggling, afflicted by years of low growth, high debt and ageing populations. Emerging markets, on the other hand, are becoming the land of investment opportunity.
What are emerging markets?
Emerging markets have some features from developed markets but have lower than average per capita income. Emerging markets include 23 countries, containing the BRICs economies — Brazil, Russia, India and China — and make up 80% of the world´s population.
Why invest in emerging markets?
Just consider this. A hundred years ago, India and China produced 16% of the world’s output, while Europe and the US produced 40%. Today the BRICs economies are seeing the world’s most impressive growth. In 2008, while the developed world was going through a major financial crisis, the BRICS economies accounted for two-thirds of global GDP growth. In three short years, their share for the world’s GDP growth increased to 50%.
Yet, investing in emerging markets is not easy. Picking the winners can be a rollercoaster ride, as they can be prone to economic and political stability.
Don´t miss out on investing in these growth powerhouses. To find out the best ways to profit and discover which countries are the best long term investment go here.