If you’re wondering if the United States of America is an economy on the decline for investing, the sad truth is that you’re right. On the other hand, there are some countries where we are seeing emerging markets, some that you would probably expect and others not so much. As the world becomes more ‘global,’ in that countries are merging market economies and working together more, we are seeing emerging market ETF’s on a faster scale than we had before.
In 2014, China is leading the world’s market growth, and is expected to maintain a rapid rate of growth going forward. GDP growth for China was recently at an astonishing 7.4%, and the consumer market in China is only expected to increase over the next few years. Some economists believe that China is outpacing itself and will ultimately witness the fall of its economy in less than a decade, but due to the massive size of China’s market, this doesn’t seem likely. If there’s a challenge that China will have to overcome in order to keep its economy up, it’s that it will have to deal with the massive inflation it is witnessing in property prices. The Chinese government has introduced laws and policies to deal with this and with the local governments.
Another country with a vastly emerging market is the Philippines. The GDP growth in the Philippines is standing at 6.5% as of 2014, and this figure is expected by economists to remain stable and neither decrease or increase within the next few years. The Philippines have witnessed an increase in consumer spending, but the real secret behind its economic growth is the business sector that has led to massive job creation. The Philippines’ closest competitor right now for GDP growth appears to be China.
You may be surprised to see this entry on the list, but India is seeing a major comeback in regards to economic growth where many economists did not see it coming. India has greatly reduced its budget deficit in recent years, which has lead to an increase in India’s GDP at a growth of 5.7% in the most recent period. It’s too early to yet see whether the government officials who gain power will either continue to put India on a path to economic prosperity or hinder this upward trend.