Emerging Markets Awakening Trend

By IMF estimates, the BRIC (Brazil, Russia, India and China) nations will account for over 50% of global GDP by 2030. Their influence is seen in many areas. Brazil is blessed with abundant mineral, water, biological and agricultural resources. Russia has revamped its agricultural sector and became one of the largest wheat exporters in the world. India has become a respectable player in the scientific, technological and pharmaceutical fields. China has the world’s largest industrial and manufacturing capacity and is now the second largest economy. By adding Mexico, Turkey and Indonesia to the mix and forming the Emerging 7 countries (E7), economic power will shift away from the G7 countries. By 2050, the E7 economies will be double that of the G7.

Just two countries, China and India, will account for a third of the world’s population and a third of global GDP. This rapid growth, especially in China has been fuelled by significant infrastructure investments, support for an export-focused manufacturing base and innovation in disruptive technologies.

Emerging market companies have shined on the global stage and expanded their line of products to global households. Historical reliance on cheap labor cost is giving way to technological expertise. Local players are turning into international dominators and suppliers to global companies are building their own brands. We are in an era of Emerging Markets Awakening that will only intensify and offer global investors lucrative opportunities of capital growth.