Don’t Forget Emerging Markets Over Trump And Brexit

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Investors should not ignore emerging markets because of big political and economic events elsewhere, cautions a new survey.

A change of president in the USA and the Brexit vote for Britain to leave the European Union have impacted economies around the world, says a report from the Agility Emerging Markets Logistics Index 2017.

But that does not mean emerging markets will feel the ripples in the long-term, although the report fears the global economy faces a year of uncertainty.

The index is produced each year and charts the progress of 50 countries.

New additions for 2016 were Iran, Myanmar, Ghana, Angola and Mozambique. Cuba was a candidate, but was rejected due to a lack of checkable data.

Biggest players

China and India took first and second places on the index as the largest emerging economies.

Nigeria was the largest faller – from 15thlast year to 24thin 2017 due to successive revisions downwards of economic forecasts, falling oil revenues and political instability.

Iran was the biggest improver – up eight places to 18thas the nation recoupled with the world economy after suffering years of sanctions.

“Entering 2017, the global economy looks vulnerable to a range of downside risks. China’s slowing economy, falling oil prices, weaker investment and volatile currencies have all had an unsettling effect on developed and emerging markets alike, as well as the private sector,” says the report.

“In this climate, there is uncertainty about emerging markets’ ability to provide high levels of return on investment.

“As a result, the status of emerging markets in the minds of investors has changed, and the days of unbounded optimism about these markets has been tempered. In recent years, investors have looked to emerging markets to provide the greatest returns. It is unclear if that will remain the case.”

Emerging Market Index 2017

RankingCountryChange from 2016
1China
2India1
3United Arab Emirates-1
4Malaysia
5Saudi Arabia
6Indonesia
7Brazil
8Mexico
9Turkey1
10Russia-1
11Chile
12Qatar
13Oman1
14Kazakhstan4
15Thailand-2
16Philippines
17Pakistan3
18Iran8
19Vietnam
20Egypt2

Source: Transport Intelligence