Frontier Markets: Introduction
Frontier market countries are a subset of emerging markets with less developed capital markets and lower liquidity. Frontier markets are smaller, less developed economies than emerging markets. Frontier markets have many opportunities, including demographic diversity, low correlation, the ability to mitigate risk, and high potential growth. However, some risks arise with these opportunities, like political instability, volatile commodities, currency fluctuations, and a lack of regulations.
Indicator | Least Developed Countries Average Source: United Nations World Economic Situation and Prospects (WESP) classification. *Average calculated for countries where data is available |
Frontier Markets Average |
Major Developed Countries Average Source: United Nations World Economic Situation and Prospects (WESP) classification. *Average calculated for countries where data is available |
---|---|---|---|
GDP growth (annual %) | 3.03% | 3.39% | 2.66% |
GNI growth (annual %) | 4.12% | 3.84% | 2.47% |
Inflation, consumer prices (annual %) | 14.53% | 12.08% | 6.5% |
Real interest rate (%) | 1.23% | -4.71% | -0.72% |
Current account balance (% of GDP) | -11.56% | -0.57% | -0.73% |
Imports of goods and services (annual % growth) | 10.93% | 11.64% | 9.45% |
Exports of goods and services (annual % growth) | 11.4% | 11.71% | 6.36% |
Unemployment, total (% of total labor force) (modeled ILO estimate) | 7.1% | 6.93% | 4.79% |
Source: World Bank
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