Investing in the Philippines, Peru or Uganda may seem excessively risky for many investors. Not so, says HSBC Senior Economist Karen Ward.
Countries where fast economic growth is coupled with political reforms as well as openness to technology, the so-called “new emergers,” have the potential to deliver high returns as they catch up with Western economies, Ward told CNBC on Thursday.
“There are some fantastic prospects out there, “ Ward said.
“We’re looking at economies that have got great potential over the next couple of decades. They’ve all got different challenges between now and then,” she added.
In January, HSBC published a report that gave a projection for the top 100 economies by gross domestic product in 2050.
The report’s ranking was based on an economy’s current level of development and the factors that would determine whether it had the potential to catch up with more developed nations.
“These fundamentals include current income per capita, rule of law, democracy, education levels and demographic change, allowing us to project forward GDP to 2050,” the report said.Page 1 of 3 | Next Page