Top Emerging Markets for 2020.....

“Emerging markets” refers to the economies of nations that are undergoing industrialization as they become more developed. The share of global GDP of these countries is growing rapidly.....

 

As of 2018 the 35 markets covered by OBG accounted for around 21% of the world’s population and roughly 10% of global GDP, as represented by the “yellow slice” of the pie in Figure 1.

These are typically the most dynamic growth markets and they therefore present an exciting – high-risk, high-return – opportunity for investors. GDP within the yellow slice was initially predicted to grow by approximately 4.4% per year between 2021 and 2023; the outbreak of Covid-19, however, has stunted growth across all economies. The IMF’s World Economic Outlook Update from June 2020 predicted GDP would contract by 5% across emerging economies in 2020, excluding China, before rebounding to 4.7% growth in 2021.

There is not one absolute definition or categorization of an emerging market – some economists employ a formula using a country’s GDP and per capita income, while other indices consider a combination of factors, including size, liquidity and market accessibility to determine whether a market is emerging, or to predict whether it will become emerging.
 
Emerging markets typically have a set of common characteristics. For example, they often introduce regulatory reforms to progress towards becoming a developed nation. Generally speaking, these economies are characterized by an increasing reliance on industrialization and manufacturing – a shift that is often designed to reduce their dependence on agriculture, energy and other natural resources or raw materials. These markets often focus on increasing exports and reducing imports to create a more favorable balance of trade and ensure food security. Many emerging economies have crafted national development plans to guide their progress towards these aims. Government reforms may liberalize, diversify and formalize a frontier market sufficiently for it to gain emerging market status.

Potential investors can use OBG materials to identify the best sectors for investment in emerging markets. We provide on-the-ground business intelligence, with insights from both public sector and private sector sources. Researchers and investors can track investment opportunities both by market and by industry/sector.

Relying on global indices is not enough; the best way to take advantage of the opportunities in emerging markets is through reliable business intelligence, such as OBG materials.