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As expected, the US central bank raised interest rates last week for
the first time since 2006. There will undoubtedly be some short-term
impact on emerging markets proportionate to the strength of each
country’s macroeconomic foundations. As always with
developing countries, however, it is worth taking a longer-term view of
trends and prospects. The World Bank’s release of their new
“Doing Business” report provides some perspective
on other factors that have implications for the performance and growth
of economies in the long-run.
In
general, the report shows that emerging markets are continuing to
implement regulatory reforms that smooth the path for businesses
looking to invest and grow. Countries in Central Asia and Africa in
particular are making important strides and there are some startling
statistics when making comparisons over a 12-year period. In India, it
now takes an average of 29 days to start a business compared to 127
days in 2004. In Poland, it now takes 685 days to enforce a contract
compared to 1,000 days 12 years ago.
While
the economic performance of emerging markets will continue to be
volatile in the coming months and years, it is encouraging that these
countries are building strong regulatory substructures to support
long-term success.
Below
are a few articles published on EMIS in the last week relating to this
issue.
As
this is the last EMIS weekly newsletter of 2015, I would like to wish
you a peaceful and happy holiday season and I look forward to bringing
you the best possible information on developing countries in 2016.
Best
wishes,
Guy Dunn
Chief Executive Officer
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