2013 Investments | Focus on emerging markets

BRICS
BRICS

Attention to emerging economies. According to the Wall Street Journal, the BRICS countries: Brazil, Russia, India, China and South Africa, together represent about 40% of world population. Only China, however, has a considerable economic weight, the other four could find themselves facing a range of problems such as inflation or the lack or shortage of foreign investment and could lose their role as drivers of growth. One of the problems is that countries that are often in financial crisis behave more like enemies than allies and a project of creating a bank for development in these countries, for example, remains on paper. For China, the 2013 should continue to show a growing economy. In the year just ended its economy is expected to have grown by 7.6% , the data is from JP Morgan. This year it is expected to be at least +8%.

Hong Kong Stocks

Hong Kong Stocks

For other BRICS prospects are less positive. India will face inflation which could exceed 7% and public deficit problems for which we expect a growth rate of almost zero. Brazil would be burdened by hyperinflation, meaning that the level of taxation is too high and might occur excessive state intervention in the economy, so it should register a limited growth rate . It could also limit its growth strategy in 2013. High taxes and heavy government intervention in the industrial sector will slow down the growth process.

BRICS

BRICS

Even Russia and South Africa are plagued by problems: the first is affected by difficult relationships with buyers of its oil and gas, while the second has to face a difficult political and civic complex with strong waves of violence and repression.

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