Thing are beginning to pick up a little again in the West, but that doesn’t necessarily mean that we’ll see significant growth in the immediate future. However, there are numerous economies emerging in 2013 with the right combination of economic factors for investors.
Though most of us have really only taken time to look at the big BRIC economies, there are a number of smaller countries that are really making strides financially and are ripe for investment. Some of these nations are potentially the best in the world for investing in if you’re willing to take a risk.
South America has had its ups and downs and Peru is just as tumultuous as anywhere else. However, the last few years have seen the country really boom thanks to peace, pro-business governments and plenty of natural resources – namely gold, silver and copper. Peru saw 6% growth in 2012 and is set for one per cent higher in 2013.
Natural resource haven South Africa is also doing extremely well thanks to its vast stocks gold, coal and wool. This has seen a significant expansion in the country’s middle classes and it is one of the high flying nations of 2012 and looks set to do the same in 2013. It could be a place ripe with opportunity for the right business at the right time.
The Philippines is one often overlooked for China and South Korea, however it’s steaming ahead and seeing huge economic growth. It looks set to even receive an investment upgrade in the coming months as well as increases in capital reserves. No need for businesses to undergo pre pack liquidation here so.
Growth is currently North of 7 per cent, 5 per cent higher than expected and thanks to its close ties to Japan and the USA, things look good for the long term. One third of its exports go to either country. It has seen a huge growth in service industries such as call centres and its agricultural sector is also doing very well. It may be one of the best countries to put money into in the next 12 months.
Many Chinese jobs have moved to Mexico due to the higher cost of wages in the eastern country. Add to this the proximity to the USA and other benefits from geography and you understand why businesses want to locate in this country. There has also be increased domestic demand thanks to the larger middle class and it looks like it could be one of the best performers of 2013.
With so much stagnation in Western economies, these countries look like they could really offer a lot to investors. Add to this the fact most of those with money have previously placed it in the BRIC economies and ignored the aforementioned four and you see the potential.
Colin O’Donnell writes for Finance7 a UK company that offers pre pack administration to businesses. He has written numerous financial and investment articles in this area.