These days, Jim O’Neill doesn’t bother much with “Brics” – the moniker he invented. The former Goldman strategist is more into “growth markets” instead. So – is it time for him to look more closely at the FTSE100, rather than the Bovespa?
Based on the new Bank of England projections, the UK economy is set to grow at a 3.4 per cent clip this year. Not too shabby. Less shabby still when compared with the supposedly “high growth rates” in certain parts of the emerging world.
Even stripping out the more troubled places – like Argentina and Ukraine – the list of countries that are currently expected to trail the UK this year looks pretty long.
In Asia, Thailand sticks out. The country’s finance ministry has a range of 3-3.5 per cent this year, with the head of the fiscal policy office himself projecting 3.1 per cent.
Taiwan too has pretty miserable expectations. The Taiwan Research Institute sees just a 2.8 per cent rise, despite an uptick in the global electronics trade.
South Africa also falls short. The World Bank recently cut its forecast for this year to 2.7 per cent, though it was only at 3.2 per cent previously.
Brazil – the B in the Brics – appears weak on growth too, with just 2.3 per cent this year, according to the IMF. Local economists are even less optimistic. Further north, Mexico has little breathing space if it is to match British growth – with the World Bank expecting a similar 3.4 per cent figure.
Russia, another Bric, will also look enviously to the UK. The IMF thinks the economy will expand just 2 per cent this year, down from earlier expectations of 3 per cent.
Turkey, too, looks set to disappoint. The EBRD recently dropped its projection to 3.3 per cent – and that’s before factoring in higher interest rates and increased currency volatility. Polish builders are also likely to find the economy more buoyant in London than in Warsaw.
http://blogs.ft.com/beyond-brics/20...-past-several-emerging-markets/#axzz2tIeb3Xvg
Based on the new Bank of England projections, the UK economy is set to grow at a 3.4 per cent clip this year. Not too shabby. Less shabby still when compared with the supposedly “high growth rates” in certain parts of the emerging world.
Even stripping out the more troubled places – like Argentina and Ukraine – the list of countries that are currently expected to trail the UK this year looks pretty long.
In Asia, Thailand sticks out. The country’s finance ministry has a range of 3-3.5 per cent this year, with the head of the fiscal policy office himself projecting 3.1 per cent.
Taiwan too has pretty miserable expectations. The Taiwan Research Institute sees just a 2.8 per cent rise, despite an uptick in the global electronics trade.
South Africa also falls short. The World Bank recently cut its forecast for this year to 2.7 per cent, though it was only at 3.2 per cent previously.
Brazil – the B in the Brics – appears weak on growth too, with just 2.3 per cent this year, according to the IMF. Local economists are even less optimistic. Further north, Mexico has little breathing space if it is to match British growth – with the World Bank expecting a similar 3.4 per cent figure.
Russia, another Bric, will also look enviously to the UK. The IMF thinks the economy will expand just 2 per cent this year, down from earlier expectations of 3 per cent.
Turkey, too, looks set to disappoint. The EBRD recently dropped its projection to 3.3 per cent – and that’s before factoring in higher interest rates and increased currency volatility. Polish builders are also likely to find the economy more buoyant in London than in Warsaw.
http://blogs.ft.com/beyond-brics/20...-past-several-emerging-markets/#axzz2tIeb3Xvg