BRICS and Investment: Emerging Markets and Frontier Markets Going for Gold

Brazil has been affected in recent weeks by suggestions of a slow down in Brazil’s usually hot economy. Inflation in China also has received some attention. The result was that some market studies have been done on the BRICS and emerging economies showing that countries like Mexico, South Africa and Vietnam are doing quite well and that China keeps on moving along to attract investment, even with signs of inflationary pressures. In a Bloomberg article on the top emerging markets, China was the only one of the BRICS to make the medal round, with Thailand and Chile taking the silver and bronze positions. Frontier markets, those who are not BRICS or possible future BRICS but had noticeable growth, also made their own listing with Vietnam at the top of the list. South Africa and Mexico made the top ten of emerging markets, South Africa already being seen as one of the BRICS and Mexico achieving record reserves despite slow growth in the US and local narcotics violence.

This year Mexico will elect a new President and Senate and the parties are slowly presenting their candidates for the upcoming six-year Presidential term. President Calderon has served his one and only legislated term in office of six years and it will remain to be seen whether his PAN party will be re-elected. With excellent economic numbers in a slow global economy, the PAN has a good chance of being re-elected. What might hurt the party is the open drug war in Mexico currently taking place that was a result of Mr. Calderon pressing for drug security in Mexico and the entrenched drug networks that have been established in Mexico over the last few decades. With former PAN President Vicente Fox pushing for a legalisation of the narcotics trade to reduce violence in Mexico, the PAN may have some soul searching to do before putting the Presidential campaign into full force.

A decent market measure for all economies can often been seen in the aviation industries response to different national economies. In Mexico, the now defunct Mexicana Airlines is showing some signs of re-emerging in Mexico after its financial collapse a few years ago. Emerging markets in general has seen some attention from the aviation industry in general as many companies seek customers in Asia, Latin America and the Middle East, a result of region market growth in general through to 2016. While the aviation industry is not being displaced in North America and Europe, it does show that BRICS and other emerging and frontier markets will produce trade expansion while the US and eventually the EU drag themselves out of economic paralysis. A conference on competitiveness and innovation addressing the aviation industry by GE named “GE American Competitiveness: What Works” will deal with issues of expansion to emerging markets and strategies in the current US market slowdown next week in Washington DC. Anyone who wishes to see how one industry is handling expansion to emerging markets and growth in the time of economic slowdown should seek information from the conference presenters and organizers. With the possible re-birth of Mexicana and troubles in Asia with the A380, it is certain to be an interesting week of presentations. Information on the conference can be found here.