Bremmer’s Top 7 Emerging Market Picks
Forget the BRICS - here are seven economies to watch
February 5, 2015
It’s time to toss the BRICs according to geopolitical guru Ian Bremmer, head of Eurasia Group and last year’s distinguished keynote speaker at our 2014 Global Investment Conference. In a recent article in Fortune Magazine, Bremmer reiterated the idea that the so-called BRIC countries – Brazil, Russia, India, China – that have driven emerging market growth are no longer the standard bearers for the changing global economy.
Rather, he says there are a host of other emerging economies that should be attracting attention from investors. In this article, Bremmer narrows his list down to seven economies to watch over the next five years.
Here are his lucky seven:
The only BRIC country worth holding on to over the next five years says Bremmer. Politically, it’s looking better and structural changes are underway that should boost growth. As he notes, “the central and state governments’ liberalization of labor and environmental regulations, coupled with generous new financial incentives for investment, is improving the outlook for the manufacturing sector too.” And policies are also being developed to encourage more foreign investment.
Indonesia’s president, Joko Widodo, is doing all the right things, from helping oil and gas companies to funding infrastructure development and education. This will lay the groundwork for better worker productivity and an expanding middle class says Bremmer.
Government reforms are helping to improve Malaysia’s fiscal position and liberalize manufacturing and financial services. With a slowing China, Bremmer says the pressure will be on to increase public spending on infrastructure, education and healthcare.
With a government bent on political and economic reforms and attracting more foreign investment, Mexico is changing. Much needs to be done to develop infrastructure and the expanding U.S. economy will also boost tourism. All that means opportunities for investors.
Bremmer thinks peace is on the way to Colombia in the form of a deal between President Juan Manuel Santos and left-wing rebels of the Revolutionary Armed Forces of Colombia (FARC). That will lay the groundwork for improvements in the business environment.
Good government and a continued effort to liberalize the economy, attract foreign investment, and develop infrastructure make Poland a solid place to be.
Kenya has escaped much of the political and economic turmoil of its neighbours in recent years. The government is set to develop its power sector and national infrastructure and to beef up security in the wake of terrorist attacks.