Sunday, March 30, 2014

Five Economies that are Emerging Markets Right Now

#1: Ethiopia

This is one of the world's fastest expanding economies and it is also the most populous landlocked nation. Located in Africa, it is the fastest growing non-producing oil country.

Agriculture is the backbone of Ethiopia's economy, though its share of the GDP has been declining steadily over the past couple of years. The government is very keen to attract foreign investors, especially in infrastructure projects. The projected GDP growth for 2014 is 7.5%.

#2: Panama

In the year 2012, Panama's economy grew by 10.5%, making it the fastest growing economy in the Americas. The government has been trying to attract investors with low corporate taxes and easy access to the market.

The Panama Canal is the biggest source of income for the country and every year it handles billions of dollars' worth of imports. Panama uses the U.S. dollar, making doing business there very easy for Americans. Panama's projected GDP growth rate stands at 6.9%.

#3: Iraq

Iraq has the second largest oil reserves in the world, and after years of unrest, the country now finally appears to be stable. Stifling bureaucracy still remains a problem - making this market one for the brave-hearted - but projected GDP growth rate is at 6.4%.

Multinationals have now started entering the market to snag market share, a good sign for Iraq's future development. The country needs a lot of investment in infrastructure, which is a characteristic of most economies that are emerging markets.

Ease of doing business in Iraq has been improving over the past couple of years and the number of procedures needed in order to start a business has dropped.

#4: Mongolia

Located between Russia to the north and China to the south, Mongolia is predicted to be the fastest growing economy in the world in the next two decades.

The country has the world's largest copper reserves, significant gas fields and onshore oil, vast gold reserves, and an abundance of other precious minerals. About 88% of its exports are minerals. English is Mongolia's official second language, and a vast majority of the young population is educated with a pro-western outlook on life.

The vast mineral reserves in the country are a sure bet that Mongolia's emerging economy will continue to grow. Projected GDP growth in 2014 stands at 11.5%

#5: Serbia

Serbia is a country that's looking to the future and has put forward a very enticing package meant to draw visitors. Companies that decide to set up shop in the country get 10-year corporate tax breaks, provided they meet some minimum capital and labor requirements.

After the break, the corporate tax rate is 15% - still one of the lowest in Europe. One of the perks of doing business here is that you can access a highly skilled workforce at very affordable wage levels. English is widely spoken in the country.

But as with most economies that are emerging markets, bureaucracy weighs down the system. The projected GDP growth rate for Serbia is 2.0%

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