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The world's economies are becoming increasingly globalized over time, presenting an excellent opportunity for investors. But they will need to distinguish between the best and worst emerging markets that are forming in order to maximize any investment in developing countries.
The best may represent a significant opportunity for savvy investors who aren't afraid of a little risk. These markets could offer some surprisingly lucrative returns, but due to these countries' real risk of economic collapse, it's worthwhile to conduct a thorough review the available data for these best and worst emerging markets.
The following is insight for investors into some of the best and worst emerging markets today.
Two of the Best Emerging Markets
Stocks within Brazil have reached a high point, which certainly bodes well for the country's modern and future national economy.
The upcoming soccer FIFA World Cup set for later this year, plus the summer Olympic Games held in Rio in 2016 will likely go a long way towards boosting the international profile of the country, and will set its tourist industry ablaze for the next decade.
Brazil could be a great asset for anyone looking for a reliable and safe investment location in the emerging market world. There is a wide array of firms that specialize in the different types of businesses located throughout the country.
Investors should additionally monitor pension funds and the equities market if they want to learn more about the resources that they have at their disposal in Brazil.
After posting gross domestic product (GDP) growth of 3% during the course of the last year, South Africa has grown even further and remains the strongest economy in sub Saharan Africa.
Its rapid development has enabled the country to enter in to some high profile economic groups, including BRIC over the past few years. The BRIC is comprised of Brazil, Russia, India and China, and is a group of progressive countries with emerging markets that are forging a strong path forward in the world.
The World Bank reported that South Africa has attained status as a middle-income country, which has improved its overall performance in a number of ways. Investors can count on growing businesses in this country to develop further, to the point where they can actually become technology innovators in their own right.
The country's securities exchange, JSE, is among the top 20 in the world. All these factors have worked to boost investor confidence in the South African market, making it one of the best emerging markets.
One of the Worst Emerging Markets
After years of poor financial planning, Hungary managed to accumulate internal and external debts that led to stunted growth over the past few years.
With a credit-based economy, this emerging market was not able to play on a level ground with others. The ripple effect from its debt led to both a high unemployment rate and an increased cost of living.
Although the Hungarian market is picking up the pieces, the speed at which it's doing so is not flattering. Hungary's future promises an eventual turnaround as GDP figures are edging up, but for now, it is one of the worst emerging markets.