Six of the Top Emerging Market Economies You Should Follow – Introduction
Last year, the International Monetary Fund (IMF) released a report that downgraded the world economy. The fund said that the uncertainty brought about by the trade war between the United States and China would affect the world economy. Even with all these challenges in the global economy, there are a number of emerging market economies you should look at. This article looks at some of them.
Brazil is one of the largest economy in the world with a GDP of more than $2 trillion. While the country is best known for its soccer skills, it is also better known for its agricultural production. Its weather and fertile soils have made it a major producer of coffee, soybeans, wheat, corn, and rice. Indeed, it is the third biggest agricultural country after China, India, and United States. It is also known for its large global companies like Vale and Telefonica.
South Africa is the second biggest economy in Africa with a GDP of more than $350 billion. The country was among the so-called BRICS category. As a trader, there are a number of ways you can trade the country. For example, you can trade its companies, which are listed in major exchanges around the world. Secondly, you can trade its currency, which is available in most trading venues such as DTTW. Third, you can trade the commodities that come from South Africa. For example, it is the biggest exporter of commodities like palladium and platinum.
Nigeria is the biggest economy in Africa with a GDP of more than $375 billion and a population of more than 154 million people. A good way to trade or invest in the country is through crude oil. Most of its economy comes from the crude oil industry. Therefore, when the price of crude rises, the country tends to do well. When the price decreases, it tends to do badly. In addition, with elections coming up, you can short Nigerian stocks and its currency.
Turkey is a major country with a GDP of more than $850 billion and a population of 79 million people. The country is known for its large economy and the fact that it has a mixed relationship with the United States because of its membership of NATO. In 2018, the country’s currency declined sharply after Erdogan won the election by promising to take over the central bank functions.
Indonesia is a big country with a population of more than 145 million people and a GDP of more than $1 trillion. With a large economy that is growing, Indonesia is a major exporter of goods like crude oil. It is also a major exporter of agricultural products and machinery. Its currency, the rupiah, is known to track other emerging market currencies. In 2018, it was one of the worst performing currencies as investors are concerned with its debt. You can trade Indonesia through its debt and its currency. You can also buy or short the country’s stocks.
As the southern neighbor of the United States, Mexico is a unique emerging market country. Last year, the country entered into a new deal with the US and Mexico. This deal removes some key short-term risks from the country. Previously, investors expected its economy to suffer with the ongoing issues with the United States.