Characteristics Of An Emerging Market

“South Africa needs to look beyond BRIC(S) markets and emerging CIVET(S)

Markets and rather focus on Africa.”

The BRICS are a group of emerging economies. This group of countries have significant influence at a regional and global level and they are all members of the G-20 countries. They consist of Brazil, Russia, India, China and South Africa.

For a county to be classified as an emerging market it has to have some characteristics of a developed market but is not yet a developed market. These countries may be developed markets in the future or were developed in the past. An emerged economy is like the United States of America, they are very developed and were to provide greater potential for profit. Emerging economies are not so developed

The Euro monitor International report states that emerging markets economies will grow almost three times as faster than developed ones. This will account for an average of 65% of global economic growth through to 2020.

The BRIC countries are classified as emerging markets. They have been on in the spotlight of the education marketers and providers worldwide. The Euro monitor said that the BRIC countries between 2004 and 2013 doubled their economies in size and now account for 21% of global and 53% of the emerging market GDP. By 2020 the BRIC countries are expected to add a combined $3.3 trillion to their consumer spending. They say that BRIC countries and Mexico will be among the world’s largest ten economies by 2020. Although BRIC countries are an encouraging statistic, they however do not feature in the world’s ten fastest emerging market economies and they did see a slowdown in that growth in 2013.

Emerging markets create trade for other countries and mainly the already developed ones. The developing countries open up there economy and create foreign investment and foreign trade to happen. This creates more GDP for the developing country as more trade is happening with foreign

The one bad thing that many investors face when investing in a developing country is that it is not a quick process but rather a long process that involves a lot of time. Many investors only start to get their money back in around 10 years’ time. There are also lots of risks involved with investing in a developing country. There are currency risks that can affect your investment. If you are using the dollar to invest into a developing country then suddenly the dollar declines against the currency of the developing country. This means that your investment return will be much lower. But some developing markets are pegged directly to the dollar and so this means that it doesn’t fluctuate