In the wake of the great recession, emerging economies across the globe began to grow into the vacuum that had been created by depreciating financial markets and collapsed banking systems. This is a trend that has continued over the course of the last eight years, even though some of these economies have not necessarily grown at a rate that was initially anticipated.
indicates that emerging economies remain a seminal and increasingly purposeful global force. It is estimated that they will add a cumulative $4.3 trillion to global GDP by the year 2025, a sum that is roughly equivalent to the size of Japan’s current economic value.
Emerging Trends That Will Shape the Commercial World in 2017
With this in mind, next year is sure to be a significant one for the world’s emerging economies as they begin to exert a greater influence over prominent business and investment trends. Here are some of the key sectors to consider and the things that we should look for in each over the next 12 months: –
Agribusiness will Become a Major Growth Industry Next Year
Make no mistake; agribusiness has evolved at a considerable rate in recent times and it remains a primary driver of emerging economies throughout the world. 2017 will see this sector explode, however, with Indonesia and Bangladesh set to build on 2015 GDP growth of 4.8% and 6.4% respectively and dramatically increase their rate of exports.
Ethiopia is also expected to become a major player in this sector during the next 12 months, however, thanks to its rich resources and ability to produce commercially viable commodities such as coffee, oil seeds and gold. With regions such as Pakistan and Vietnam also driving this market, it is likely to be of interest to international investors in the months ahead.
The Decline of the US Dollar and the Emerging Currencies that Could Benefit
Amid the furore that has gripped America in the wake of Donald Trump’s election as President, attention has been diverted from rising debt levels in the US and the retention of artificially low interest rates. Trump has vowed to reverse this trend, however, as he is known to favour the global economic benefits of a weaker dollar. Jeffrey Halley, senior market analyst at , has described this phenomenon as ‘Trumpflation[..] that would [also] push up borrowing rates and yields in the States.’ If the President-elect does implement policies that drive down the value of the dollar, this could create opportunities for emerging economies to evolve and fill the void.
This is particularly true when you consider the uncertainty that has gripped the British pound, which has fluctuated wildly since the UK voted to leave the EU. With the , emerging options such as the Indian rupee may suddenly become more appealing to investors.
This currency has certainly withstood previous surges of the Greenback and other major currencies better than most, while it will be boosted in 2017 by infrastructure spending and a higher volume of exports.
Emerging Economies will Begin to Embrace Wearable Technology
Another interesting thing to emerge from this year was declining growth rates for major technology brands such as Apple and Google. This suggests that these brands have reached the point where they have saturated the developed world with their products, prompting the logical conclusion that the emerging economies will . With the uptake of smartphones and tablets having already taken off in these regions, we should therefore expect more advanced technology to make its mark during the coming year.
With this in mind, we may finally see wearable technology become a mainstream concept in emerging economies during 2017. This would perhaps provide an interesting opportunity for start-ups, distributors and investors, who can leverage this trend to profit from growing consumerism in the developing world. If there is one specific application to look out for, it is the integration of fitness tracking wearables, as these products are now widespread in the
Western world and remain in high demand across the globe.