Private equity investors like to keep their eye on the momentum, regardless if it is in a sector, sub-segment, or at the higher macro level, so a report on Bloomberg ranking the economies in both Emerging and Frontier Markets is worth a read. The leading Frontier Market (FM) economies are all Gulf nations, then Eastern European and it is not until position 12 that an Asian economy appears, namely Vietnam.
The gains for the Gulf nations is mainly attributed to the high price of oil petroleum products which means more cash for investment in oil rich countries. Qatar and the U.A.E. have progressed to a point that MSCI said on June 11 it would upgrade them from frontier to emerging status in May, for example, says Bloomberg.
Other non-European and non-Gulf states in the FM ranking are Argentina at position 14 and Nigeria at position 15. Three Asian nations led the Emerging Markets ranking, with China in the number one spot for the third consecutive year, followed by South Korea and Malaysia.
The research was conducted by Bloomberg Markets is based on 19 measures of the investing climate, from forecasts of gross domestic product growth for the next two years to the ease of doing business.