Page 44 - STRATEGY Magazine

CHINA
MEXICO
the currency has completely recov- ered, signals are mixed. The pro- tectionist rhetoric of the campaign trail—an echo of Brexit that has been amplified across the developed world—still hangs heavy in the air. Any significant change to NAFTA could spell disaster for key Mexi- can industries such as agribusiness and automobiles. Yet in the midst of this uncertainty, Mexico’s boom- ing renewable energy market saw some of the world’s most impressive growth at a time when global invest- ment across the industry took a nose- dive. Should the U.S. administration choose to stay the course on NAFTA, all indicators show a bright future in Mexico.
Brazil is another country that has puzzled investors in recent months. The nation faced sharp declines in
INDIA
Emerging economies are found on every continent and range in size from Bulgaria to China. So, while they may share key characteristics, generalization has its limits, and investors need to do their homework before com- mitting to a project.
GDP in 2015 and 2016 due to a glob- al dip in commodity prices, the first and foremost being oil. As a result, Petrobras has been selling bonds at affordable rates to ease markets to- ward growth. Experts expect this to end soon as GDP inches back into the black (nearing 2 percent growth by 2018). Yet Venezuela’s implosion
has cast a shadow over much of the region, so financiers are cautious to predict a fast recovery.
STRENGTH IN THE EAST
Russia has dominated discussions of geopolitics in recent years with its activities in Ukraine and the Middle East. And it has paid quite the price—crippling sanctions have devastated the nation’s oil industry almost as much as falling oil prices. Yet analysts see adjustment coming throughout 2017 and 2018, antici- pating growth more than double that of the Eurozone at 1.3 percent this year. Growth is expected to be con- centrated mostly in commodities and petroleum as global trends in those industries tend toward positive.
As a general rule, emerging mar- kets develop faster when private in-
42 STRATEGY
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