A recent story in The Economist summarizes the resilient opportunity in global emerging markets, which is part of the reason why we believe so strongly in the long-term potential of this sector.
2009 was expected to be a very rough year for emerging markets, due to the reliance on exports to developed markets. And while some countries and regions did take it on the chin, the overall outcome was not nearly as bad as anticipated. The disaster of 1997-98 did not repeat itself.
A few of the key points from The Economist:
• Goldman Sachs estimates that the BRIC countries have been responsible for nearly half of global economic growth since 2007.
• In 2009 the stock markets in the largest emerging-market countries made up for all of their 2008 losses.
• The Institute for International Finance sees a doubling of capital inflows into emerging markets in 2010 to $672 billion.
• Belief in capitalism endured despite the weaker conditions. Nearly 90 percent of Chinese were “satisfied with national conditions” in 2009, compared to less than 40 percent of Americans, according to the Pew Global Attitude Project.
Saverio Manzo
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