Asia is home to nine out of the world’s top 10 growth prospects for investors, according to new research by global risk analytics company Maplecroft, which forecasts the key growth economies over the next 10 years.
The 2015 Growth Opportunities Atlas rates the Asian countries of China, Malaysia, Sri Lanka, South Korea, Hong Kong, Vietnam, Singapore, the Philippines and Indonesia among the top ten growth prospects over the next decade.
A combination of prudent fiscal and monetary policies, rapid gains in education and digital inclusion and favourable demographics, including higher proportions of working age adults, have provided a solid base for the economies to advance steadily up the global income and value chains.
Latin America provides 20% (six) of the 30 economies rated by Maplecroft as best placed to grow. While the pace of growth in the continent’s traditional economic heavyweights Argentina (53), Brazil (84) and Mexico (94) has slowed to a crawl, openness to trade and investment and market-oriented reforms have given other smaller economies a more robust platform for future growth.
Panama (1), Peru (12), Chile (14), Uruguay (21), Costa Rica (22) and Colombia (29) are expected to grow 35% faster than the rest of the Latin American region from 2014 to 2019, as per IMF forecasts. According to Maplecroft, these economies also have higher investment rates, better fiscal balances and lower gross debt than their regional peers.
The UK (51st compared to 92nd in the 2014 GOA) is flagged by Maplecroft as one of the most improved economies in the 2015 GOA.
In spite of persistently stagnant growth throughout Europe, a broad-based domestic recovery, driven in large part by a rapid rise in manufacturing output and supported by a number of reforms to boost long-term competitiveness, mean that the UK is expected to see higher growth rates than France, Germany, Italy and Spain between now and 2019.
Kenya (88th compared to 121st in the 2014 GOA) has also been one of the strongest improvers in the index over the last two years.
The country is strategically located along one of the world’s busiest shipping routes and substantial infrastructure investment in recent years has enabled it to consolidate its position as a regional hub for trade and commerce. This is reflected in its robust agricultural sector, which is performing especially well, and manufacturing and finance, which are showing promising gains.
The country’s high levels of human capital and digital inclusion and relatively diversified economically relative to its regional and economic peers put Kenya in a strong position to outperform other African economies in the years ahead.