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Opportunities in Emerging Markets by Gordian Gaeta

Opportunities in Emerging Markets by Gordian Gaeta

Author:Gordian Gaeta
Language: eng
Format: epub
Publisher: Wiley
Published: 2012-11-21T16:00:00+00:00


Growth of China and India

Most Asian frontier countries have strong economic and political influence with their smaller neighbors. In many instances, the economic well-being within frontier countries is highly dependent on the sustained economic growth within their larger neighbors. Mongolia, which has just started to explore and extract its enormous coal and copper deposits, will certainly help fuel China’s growing economy and thirst for energy resources. This dependency can be both positive and negative. At the moment, Mongolia is among the fastest growing countries in the world and its GDP is forecast to grow by over 15 percent annually over the next three years, attributed in large part to its export of coal and copper to its neighbor, China. However, China’s rate of growth is not infinite, and some analysts forecast the days of China’s double-digit GDP growth may come to an end. Alarmists speak of a hard landing brought on by an overheated economy. In either case, Mongolia would be remiss to become overly dependent on one country as the sole destination for its exports. The coupling effect holds true for relationships between Mongolia and China, Bangladesh and India, or any other frontier market looking to piggyback off of a larger neighbor’s economic growth.



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