Throughout 2011 a great deal of focus within the financial world was dedicated to the Investment Fund potential for investors willing to look at the CIVETS nations. Extensive analysis and commentary was afforded to the growth and development of the economic landscape within Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa.
A host of investments have been launched over the past 12 months and the activity within these nations has continued to grow as bold investors look to target the world’s fastest growing economies.
The reasons for this heightened activity are varied.
For example, the CIVETS nations boast a collective population of circa 600 million representing some 8pc of the global population, a population which is characterised by being both young and ambitious. Therefore, the growing consumption of these nations means that invest in brics currency market demand is strong for core commodities and this is further bolstered by population dynamics which appear fixed on growth in all aspects of life.
In this respect the CIVETS nations mirror many of the social and industrial qualities inherent in larger developing markets such as the BRIC economies – Brazil, Russia, India and China. In fact, in some instances, the growth rates of the CIVETS nations are now outstripping those of the established BRIC countries.
Another crucial feature is that, when looked at as a whole, the CIVETS nations don’t have the chronic debt problems that are currently being experienced in the developed world. This is a major positive feature for investors seeking both short and long-term returns.
Here we take a closer look at the key features of the CIVETS nations and their influence upon the Investment Fund potential. Please do remember that the value of investments can go down as well as up and you may get back less than you invested.
The current Government of Colombia has expended much time and effort stabilising the security situation throughout the country and developing the national infrastructure.
It has been very eager to increase trade and business activity throughout its industrial regions and has successfully reinvested portions of oil revenues to vastly improve the commercial and social environment.