Emerging markets are continuing their upward march in global economic terms, proving the growth story in the developing world is far from over. That is according to TIME magazine, which has named four new emerging economies – including Indonesia and the Philippines – as the ones to watch.
The Philippines, Indonesia, Nigeria, and Ethiopia are now the four most desirable emerging markets, according to the magazine. Nicknamed the PINEs, these four countries are giving the world’s economic powerhouses a run for their money.
The magazine notes that these economies represent a big step forward for both the global economy and the quest to eradicate poverty. “The PINEs are all performing very well right now, and that shows that the advance of emerging economies is far from over. In fact, the fantastic growth story in the developing world is widening and deepening, drawing in countries and regions that had previously been left out,” it says.
The Philippines, for example, has recorded an incredible 7.2% spike in GDP – and this despite the devastating effects of Typhoon Haiyan. The International Monetary Fund expects the economy’s upward swing to continue over the next several years, TIME says.
Indonesia has also seen a reversal of its fortunes since the 1997 Asian financial crisis. There are several strong economic indicators working in the country’s favor: political stability, a growing consumer market, and a 17% increase in foreign direct investment last year. The Indonesia economy is now forecast to grow about 6% annually in the coming years.
The magazine forecasts that the growth in African countries, including Nigeria and Ethiopia, will be even more exciting. In both cases, increasing political stability is attracting foreign investors. For both markets, the IMF is predicting annual growth of about 7% over the coming years.
And while TIME acknowledges that there are risks involved for all of these emerging economic tigers, it predicts that the PINEs represent a major investment opportunity for international companies.
- The BRICs: Former Goldman Sachs economist Jim O’Neill coined this term to refer to four economies on the rise: Brazil, Russia, India, and China.
- The MINTs: O’Neill recently coined another acronym, referring to Mexico, Indonesia, Nigeria, and Turkey. With favorable demographics and strong economic indicators, O’Neill now considers these four to be potential powerhouses.