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Make a MINT: 4 frontier markets to watch in 2014
January 13, 2014Article by Ray Withers
Investors have long been familiar with the term BRICs, which economist Jim O’Neill coined to refer to the emerging economies of Brazil, Russia, India and China. Now, O’Neill has sparked further interest from the international investment community with his identification of the MINT economies.
The MINT countries include Mexico, Indonesia, Nigeria and Turkey, all of which have favourable demographics and interesting economic prospects when considered over the next two decades, according to O’Neill. These ‘frontier markets’ are likely to produce some exciting investment opportunities over the years ahead and global money makers are poised to analyse their latest developments and identify the openings that these create.
Close to the US but commanding far lower wage rates, Mexico has the opportunity to build a booming economy based on the production and supply of a variety of goods. With politicians hungry to reform and build their country, ‘made in Mexico’ could soon become synonymous with well-made but low-cost products the world over. The country is already drawing considerable investment interest away from Brazil.
With rapid urbanisation, extensive coal deposits and a healthy focus on the country’s economic prospects, Indonesia has begun to interest investors greatly. O’Neill predicts that by 2050 Indonesia will rank seventh for GDP, building on its firm foundation of a mixed private and state economy. As the fourth most populous country in the world, with a workforce looking to the future, Indonesia is clearly one to watch.
Nigeria is the MINT country that seems to be causing the biggest stir currently. Though the stakes are high, given the political landscape, it has a huge, young population that represents a massive opportunity for growth over the coming decades. It’s pending GDP re-basing may well confirm it as the biggest economy in Africa, moving ahead of South Africa and positioning it as the continent’s economic powerhouse.
As the true crossroads between the eastern and western world, Turkey occupies an incredible position of power, which has previously been largely under-appreciated. Now, though, Turkey is racing ahead of many countries to put itself on the map as one of the most exciting investment prospects available. With faster growth than China last year and some rapidly rising global brands, Turkey was the third fastest growing economy in the world.
How to get involved
Property Frontiers constantly monitors world events and economic developments to ensure that we are able to bring the best investment products on the market to our clients. Of course, we have been taking a close look at the MINT countries for some time, so that we can identify the most exciting developments to be offered. If you would like to know more about upcoming investment opportunities in the MINT economies, please contact us today.