BRIC economies
Brazil has been the subject of a fair bit of turmoil of late, not least the impeachment of President Rousseff. Allegations of corruption and political instability have undoubtedly had an effect on the country's economy in 2016, however, this has since stabilised, and new fiscal plans are being put into action. Despite a contracting economy and notable public debt, there are positives attracting investors, such as lower inflation.
Russia may not be the international community's favourite country right now, and it has been the subject of many sanctions over the years. Nonetheless, the country has an appealing economy, if somewhat reliant on the oil and gas sector. Though it is at the whim of global oil prices, the country's economy continues to emerge from a moderate recession (following economic sanctions and the drop in oil prices).
India may not be faring quite as well as its fellow BRIC member and Asian neighbour China, but this is not to say that is doing badly. A lot of criticism was given to the demonetisation policy of late 2016, and some argue this has caused a slow down in the economy's growth. Nonetheless, inflation is down and burgeoning sectors, such as tech hubs have emerged in Bangalore and New Delhi, with others keen to follow suit. There are a wealth of government incentives for startups to keep India a competitive player in the international startup scene. However, there are some serious contenders in the Asian region, with Singapore's recently reformed startup policy and China upping incentives for startups as well.
The last letter in BRIC, though certainly not the least, China is an international success story, becoming one of the world's largest economies (though still classed as an emerging market), and seeing the fast-paced growth of its middle class. The country has by far been the biggest contributor to the overall BRIC economy. However, China's economic ambitions have been reviled by other countries – for example, China has often been seen as a key culprit in steel dumping. Recent friction over its border with fellow BRIC country India has also raised concerns over its expansionist policies. Nonetheless, doing business in China is also a no-brainer, given its position on the international stage.
Europe's emerging markets
Though it has not adopted the Euro, the Czech Republic is an EU member and has close links to the monetary union. Historically a key Central European economy, the country continues to be a leader in the region. One of the most successful former members of the Soviet bloc, the Czech Republic has gone from strength to strength since its change to a market economy. The automotive industry is a booming sector in the country, though it also has a significant e-commerce sector. It is also highly popular with tourists – particularly from the rest of Europe.
The frontier market of Estonia is a leader in the Baltic region and perhaps doesn't get enough credit as a tech centre. With e-residency and streamlined administration through tech, it has done a fair amount to establish itself as a tech hub. A member of the Eurozone since 2011 and with relatively low debt, the country is certainly an appealing one to do business in. Infrastructure investment in the capital of Tallinn has made the city an appealing place for expat employees and businesses, and this is continuing with recent backing from the EIB for further development.
In spite of its tumultuous past, Croatia joined the EU four years ago and has received a considerable amount of foreign investment into its manufacturing sector. However, there are some uncertainties when it comes to doing business in the country, with a recent slow down in the economy being a hot topic in the latest round of elections. This current uncertainty (that extends the bureaucracy of doing business, as well as the tax regime) is a turn-off for investors, but it has successfully attracted multinationals and continues to be a popular tourist destination, so it is yet to be seen how things will unfold.
The rise of Africa
Kenya is currently a frontier market with a diverse economy. Various commentators point to how the country has benefited from the drop in oil prices, regarding cheaper imports and more petroleum exports. Kenya's economic growth is notably higher than the African continent's as a whole, and with continued smart economic policy choices, this is sure to continue. However, this economic growth shouldn't be at the cost of infrastructure which is arguably underdeveloped. Nonetheless, there are transport projects underway, and Kenya boasts the fastest internet speeds in Africa (even faster than some developed economies), making it appealing to tech developers and startups.
Mauritius has long been viewed as a 'safe bet' for investors looking to the African continent. It is popular with Asian investors who are keen to invest on the continent through funds based in Mauritius, with its stable government and economy. The country is certainly in a prime position for this type of investment, however, it does have a broader economy. The country has a sizeable agricultural sector, though the other notable area is tourism. Thanks to its pristine beaches and tropical climate, Mauritius has made itself into a popular luxury tourist destination and is constantly looking to create new flight routes to increase its reach.
One of the few African countries classed as an emerging market, South Africa has had its fair share of challenges lately. There is a lack of confidence in the country's president, especially following the removal of a well-regarded finance minister from his post. It has also had its credit rating lowered to a junk ratings by a few rating agencies. For the economy often given place alongside the BRIC economies, things seem to have taken a turn for the worse. Still, it remains an appealing destination for investors on the continent.
Nigeria is one of the 'MINT' economies, with Mexico, Indonesia and Turkey. Its economy has grown beyond oil (though it has certainly felt the effects of the slump in oil prices) with telecommunications, financial services and the broader service sector playing a role in its development. However, as with other countries in the region, poor infrastructure is an issue. Despite this, one of the main developments is the growth of the middle class in Nigeria (like with China), which created a new group of consumers, benefiting retailers and those in the food and beverage industry, in particular.
