Quote of the Week: Hitting a BRIC Wall


May 16, 2013

“Korea is a remarkable economic success story along with Taiwan. It’s the only economy in the world to have grown at 5 percent or more for five decades in a row… The other countries where I think that expectations can be surpassed versus what the consensus are Indonesia, Turkey, Philippines. I think even Thailand has a chance of doing so. Then a bunch of frontier markets such as Nigeria, Sri Lanka. I think all these countries have a chance of surpassing expectations.”


Who said it:  Ruchir Sharma, Morgan Stanley Head of Emerging Markets


In Context: The BRIC countries may have peaked in terms of growth rates, making them slightly less attractive to PE investors. According to an interview on CNN with Sharma, the BRICs (China, Russia, Brazil, and India) are looking a bit “tired”, but Columbia, Chile, Philippines, Sub-Saharan Africa, Turkey, Poland and Bulgaria are piquing the interest of investors due to potential for higher growth rates in the coming years. Sharma says a good number of countries are out there which can be “break-out nations”, which may emerge as the new economic stars. Europe might have problems with debt crises and boom-bust cycles, but countries such as Poland have “very good macroeconomic finances, and a pretty stable growth rate, solid institutions, and some very good companies.” Sharma also sees Czech Republic in a similar league. (Image Source: Foreign Affairs Focus on Youtube)

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