2013 might just be the year emerging markets have been anticipating. Throughout the past year, investors have been pouring money into emerging markets in developing countries. There are other factors that point to success for emerging markets, but are they enough to boost the small businesses to profits and prosperity?
Besides investment, there are viable reasons that support the prediction of success for emerging markets. One piece of evidence is that 86% of the world’s population lives in non-industrialized nations. These nations account for over half of the world’s collective gross domestic product. As the population in these areas continues to expand, so do the prospects for their markets which are also increasing technologically. Populations in these developing countries are expanding faster than in industrial countries, and productivity is expanding right along with the population.
The top emerging markets predicted for 2017 are in China. The estimated GDP growth for China is 45.9% from 2013. China, along with its emerging market competitors such as South Korea and Thailand, has impressive currency reserves. This is an advantage because these reserves can be used in certain crisis situations. Another advantage for emerging markets is the generally low debt in developing countries.
All of these factors are in favor of emerging markets in 2013, particularly in developing countries. Do you think these will add up to success for these small businesses in the upcoming year, or should the investors close their wallets?