With the emering world now accounting for more than 50% of world economic activity and nearly 80% of world economic growth, this ‘Oliver’s Insight’ looks at the key economies of Brazil, India and China. The key points are as follows:
- Brazil, India and China have slowed sharply on the back of weakness in advanced countries, the lagged effect of past monetary tightening and structural constraints.
- While their long term growth potential has been reduced a bit, emerging countries still offer better long term growth prospects than Europe, the US and Japan given a lack of major debt problems and lots of catch up potential.
- Given very low valuations, emerging market shares continue to offer value and growth potential for long term investors.
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