Everyone knows that India, China, Russia and Brazil are key growth markets. But a recent report from Citi Investment research also identifies many other nations that are starting to enjoy, or are on the verge of, strong, sustainable economic growth.
Here are a dozen countries that deserve to be on your radar, along with a condensation of Citi’s risk and opportunity outlook for each market.
#12 Mexico: Average 2010 – 2050 growth: 3%
Mexico’s population of 113 million is large and growing. However, the country is struggling with its war against drugs and violence has been escalating.
#11 Thailand: Average 2010 – 2050 growth: 4.4%
Strong export-driven economy. But the country is heavily dependent on oil imports.
#10 Sri Lanka: Average 2010 – 2050 growth: 5.5%
The country has emerged from a long civil war and is on its way to a stable economy. But it needs post-conflict resolution to avoid political instability.
#9 Egypt: Average 2010 – 2050 growth: 5%
Egypt’s has a large working-age population expected to grow 60% by 2050. But it needs to liberalize its economy and avoid political instability.
#8 Bangladesh: Average 2010 – 2050 growth: 6.3%
Bangladesh is a young country with a huge supply of labor. Still, it ranks low on health, education, and quality of institutions and services.
#7 Peru: Average 2010 – 2050 growth: 4%
Peru is rich in copper and gold, and is seeing rising foreign investment. Main risk: political instability.
#6 Colombia: Average 2010 – 2050 growth: 3.8%
Colombia has been recognized as winning its war on drugs, with S&P recently upgrading the country’s debt to “investment grade.” But Colombia is still fighting a revolutionary force known for terrorist acts.
#5 Iraq: Average 2010 – 2050 growth: 6.1%
Iraq will benefit from its oil reserves and post-war reconstruction program. Its working-age population is expected to grow 143% by 2035. But the country must rebuild its economy and education system.
#4 Philippines: Average 2010 – 2050 growth: 5.5%
Its working-age population is set to jump by 66% by 2050. But investors remain wary of corruption and political instability.
#3 Mongolia: Average 2010 – 2050 growth: 6.3%
Mongolia has vast copper and coal reserves and oil and gas fields. It also has a high rate of savings and investment. But its economy needs to diversify to hedge against political changes and fluctuations in commodity prices.
#2 Indonesia: Average 2010 – 2050 growth: 5.6%
Indonesia’s is rich in resources and its private sector is hungry for investment. So far, poor infrastructure and red tape have deterred foreign investors.
#1 Vietnam: Average 2010 – 2050 growth: 6.4%
Successful export economy, high foreign investment rate. Still, the country’s policy making is notoriously cloudy and its exchange rate management poor.