Emerging markets And Their Economies
The present recession has played havoc with the world market and we get to see a lot of upsets in the economies of the world trade leading countries. But the fact is that one man. loss is another man. gain. This is true for the countries too.
The recession has shown a constant downward trend for the US and the European economies but at the same time it has shown remarkable results for the countries with emerging economies. This has not just happened over the weekend, but has taken a gradual steady rise for over 6 years to reach where it is today.
You will be surprised to know that a country like Brazil remains oblivious to the current international market crisis and continues to rise and has its stock market capitalization to GDP ratio near to that of USA. This is not the only example in the world. Indonesia, India and China are also continuous gainers in stock market capitalization to GDP ratio.
On the other hand, Russia, Germany and USA are at the losing end. This changing trend has developed over a long period of time and the decline has been observed since 2003 in both USA and Europe. There are other countries following suit but the emerging market trend is in fact a phenomena that the emerging markets are attracting the investors who are losing confidence in the dropping economies of the developed countries. The countries with emerging economies have given them what the investors are always looking, which is a stable market.
The western investors have turned towards countries like Brazil, India and China who offer high investment returns to foreign investments and also promise lower tax rates and exemptions which are always welcomed by them.