China’s booming economy continues to grow at a considerable rate and has helped pull much of the global economy away from the worst of the financial crisis. India’s youthful population has also buoyed many Western economists’ forecasts of continued economic growth. This sustained focus on Asia’s economic performance has meant other emerging economies Brazil, in particular, and Russia, to a lesser extent, have found it hard to have a profile in the pantheon of emerging markets. It is as if BRIC has become IC.
Russia has its own economic idiosyncrasies, which have made it less attractive to investors than its Asian counterparts.
Yet markets in Latin America, like Brazil and Mexico, have similar positive growth prospects yet far less profile than Asian economies. Mexico grew at almost 6% in 2010 and its close proximity to the US provides a powerful stimulant to its economy.
Brazil’s economy soared last year with 7.5% growth and it’s expected to grow 4.5% this year. Its population is forecast to hit 217 million by 2030. Resource rich Brazil today is a major world supplier of commodities and natural resources. The country will also now play host to two of the world’s largest international sporting events – the World Cup in 2014 and the Olympics in 2016 - global events which will perhaps give this emerging economy the global recognition it deserves.
While China and India will remain vitally important markets, the likes of Mexico and Brazil should not be overlooked. Recovering economies and strong links with the US mean these two countries will continue to provide significant investment opportunities as their financial markets mature. We need to banish the emerging markets tunnel vision and remember the opportunity in Latin America.
Click here to listen to the BBC’s report on the prospects for Brazil’s economic boom continuing.