BRIC, E7, Largest Emerging Economies

Discussion in 'Economy & Infrastructure' started by hello_10, Nov 18, 2012.

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    BRIC

    In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development. It is typically rendered as "the BRICs" or "the BRIC countries" or "the BRIC economies" or alternatively as the "Big Four".

    The acronym was coined by Jim O'Neill in a 2001 paper entitled "Building Better Global Economic BRICs".[1][2][3] The acronym has come into widespread use as a symbol of the shift in global economic power away from the developed G7 economies towards the developing world. It is estimated that BRIC economies will overtake G7 economies by 2027.[4]

    BRIC - Wikipedia, the free encyclopedia

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    E7

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    The E7 is a group of seven countries with emerging economies. The E7 are predicted to have larger economies than the G7 countries by 2020.[1]

    The "Emerging 7" according to Peter Marber (author of Seeing the Elephant (2009)) states the 7 countries as follows: China, Russia, India, Indonesia, Mexico, Brazil and Turkey.

    E7 (countries) - Wikipedia, the free encyclopedia
     
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    E7 Growth Performance Trumps G7
    January 2012

    It is now three years since the Great Recession ended and profound changes are underway in the world economy. The global economic axis which had been shifting fundamentally away from the advanced economies of Europe and North America to the world’s emerging economies has accelerated sharply over the past four years. Moreover, living standards are rebalancing across the world, rising in the emerging countries but falling in the advanced countries.

    The global economy has been severely buffeted in the past few years as it lurches from one crisis to yet another. The bursting of the US housing bubble, the meltdown of the sub-prime mortgage market, the freezing of credit markets, the collapse of Lehman Brothers, the sovereign debt crisis, credit rating downgrades, and the very survivability of the eurozone, have all contributed to the unprecedented battering that is plaguing the global economy.

    It’s little wonder that the fallout from these crises has had a profound effect on the structure of the world economy. Interestingly, a comparison between the major advanced economies of the G7 and the seven largest emerging economies – the E7 – reveals some startling differences. Collectively, the E7 bloc which includes China, India, Indonesia, Brazil, Russia, Turkey and Mexico now accounts for close to 31% of world GDP, up from 19% twenty years ago. During this same time period, the G7 has seen its share of world output fall from 51% to 38%.

    The impact of the global recession on the G7 and E7 economies has been quite varied. In a nutshell, while the recession and the ongoing economic malaise have knocked the wind out of the G7 economies, the impact on most of the E7 countries has been relatively muted. Five of the G7 economies – Britain, France, Italy, Japan, and the United States – all suffered back-to-back declines in GDP both in 2008 and 2009. Canada and Germany, however, posted declines in GDP on a calendar year basis only in 2009.

    In contrast, four members of the E7 group – Brazil, Mexico, Russia, and Turkey – experienced declines in economic activity only in 2009 with the fall in GDP ranging from a low of -0.6% in Brazil to a high of -7.8% in Russia. Moreover, the economies of China, India, and Indonesia rode out the financial storm and sailed through the global recession without posting a single negative year of growth.

    Since climbing out of the Great Recession, the recovery has been weak across the board for all the G7 economies and there are growing fears that another economic downturn may be unavoidable. For example, for the G7 group as a whole, growth in GDP averaged 2.7% in 2010 but weakened to 1.3% in 2011 and is expected to slip even further and average just 0.6% this year. In contrast, while a slowdown is also anticipated in all the major emerging economies because of the global inter-linkages, there is no talk of recession. Economic growth in the E7 averaged 7.5% in 2010, 6.0% in 2011 and is projected to slip to 5.2% this year.

    It is these divergent trends in growth that have significantly altered the global economic landscape. To put things in perspective, over the four year period from the end of 2007 through to 2011, only four of the G7 economies have regained their pre-recession levels of output. Canada has been the best performer in this group but despite that it is still only 3.1% larger than it was in 2007. The size of Germany’s economy, the second best performer, is 1.8% larger while the United States and French economies have just managed to move ahead of where they were in 2007.

    Three of the G7 economies – the United Kingdom, Japan, and Italy – have failed to recover the output lost from the 2008-09 recession and find themselves essentially stuck in what amounts to a long drawn-out economic slump. The UK economy is 2.6% smaller than it was in the pre-recession peak year of 2007, Japan’s is 4.2% smaller, and Italy’s is 4.7% smaller (see Table 2).

    In contrast to the G7 countries, the production of goods and services is bigger today in all the E7 economies than it was in 2007. China’s economy is 44.6% larger than it was before the crisis and despite a slowing down of growth its GDP is likely to expand by another 8.2% this year. Similarly, India’s economy is 34.6% larger, Indonesia’s is 25.2% and Brazil’s is 16.5% bigger. Even Mexico’s economy, which is 3.9% larger and, therefore is the E7’s worst performer, has outperformed every single member of the G7.

    The major advanced economies now face years of struggle and none of them are likely to see a return to pre-crisis rates of growth for the next few years. Indeed, several of the G7 economies including Britain, France, Germany, and Italy could be heading back into recession as the recovery is increasingly showing signs of coming unstuck. Unemployment is rising again in Europe, retail sales are falling, and although inflation has started to edge down it still remains above central bank targets. Moreover, the need to reduce budget deficits and reign in unsustainable debt-to-GDP ratios – which are at alarmingly high levels in all the G7 economies – risks further entrenching the recessionary conditions in which these economies find themselves stuck.

    With the outlook for growth diverging sharply, the G7 countries are split into two camps – the United States and Canada are expected to grow at around 2% in 2012 and Japan’s economy is also likely to see its output rise by a similar amount as the country rebuilds from last year’s devasting tsumani and earthquake. On the other hand, the outlook for European economies is darkening. With the debt crisis in the eurozone countries continuing to swirl and showing no sign of easing, the IMF in its latest forecast expects the region’s GDP to contract by 0.5% this year. Italy, the regions third largest economy is projected to decline by 2.2%, by far the worst performer of any G7 economy.

    It is now abundantly clear that, more than two years after the end of the Great Recession, a sustained recovery remains stubbornly elusive for the major advanced economies. Despite massive amounts of monetary and fiscal stimulus, the rate of growth in all of the major advanced economies has been sharply below their respective long-term averages. Moreover, constrained by large debts and deficits, not a single G7 country is expected to achieve growth rates above, or even at, its long-term average for several more years. :nono:

    In contrast, since 2007, growth in the economies of the E7, despite the ongoing global turbulence, has not deviated much from their long-term averages. By 2020 this bloc, given the current trends, will surpass the G7 and account for a greater share of world output. This, in turn, will lead to a shift in the current geo-political power structure. Whether this will be muted or more pronounced remains to be seen.

    E7 Growth Performance Trumps G7 / Ranga Chand - International Economist and Financial Author
     
    Last edited: Nov 18, 2012
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    BRICs Share Of World Economy Up Four Times In 10 Years
    7/04/2012

    The economies of Brazil, Russia, India and China account for 20 percent of the world economic output, and rising. That’s up four fold in the last decade, according to a report released yesterday by the International Monetary Fund.

    Despite the growth, problems in the core economies had made the post-2008 world a difficult one for the big four emerging markets.

    Their combined stock-market value has dropped to a three-year low of 16 percent of the total invested in global equities, according to data compiled by Bloomberg . Jim O’Neill , the chairman of Goldman Sachs Asset Management who came up with the term BRIC in a November 2001 research report, said that the pull back in equity values makes BRIC market stocks “irresistible,” Bloomberg reported him saying on Wednesday. The last time the gap was this wide, in 2005, the MSCI BRIC Index jumped 53 percent in 12 months, more than double the gain in the MSCI All-Country World Index. :tup:

    “Unless we are seeing a major collapse of those economies, it’s a huge opportunity for investors,” O’Neill told the newswire.

    Audrey Kaplan, a fund manager at Federated InterContinental (RIMAX) said on Monday in an interview with Forbes that she had started investing in China for the first time in nearly years in the first quarter and is now overweight China and Brazil within the BRICs.

    “You want to own a lot of these big names when they’re cheap,” Kaplan said about Brazil’s large cap stocks which have underperformed the local BM&F Bovespa index all year. “We’re getting back into these names because they are very attractive at their recent price levels.”

    According to Bloomberg, BRIC equity value, which includes locally-traded shares and ADRs, has dropped to $7.6 trillion from $9.5 trillion a year ago, when they made up 18 percent of the global total. Petrobras (PBR), Brazil’s state run energy company, fell to the world’s 39th-largest company by value from the 10th-biggest in July 2011. China Construction Bank’s rank dropped to 20 from 12 while Rosneft , Russia’s largest oil producer, sank to 106 from 70. India’s ICICI Bank (IBN) has lost 17 percent of its market cap during the past year, compared with an average gain of 9 percent for global peers.

    The long term trend of rising standards of living remains in place for the BRICs, but investors still have to contend with market volatility related to problems in the advanced economies.

    Allan Conway, head of emerging markets at Schroder Investment Management, said the market still needs clarity on Europe. There’s no clear direction yet in global equities as a result.

    “In 2008, we beat the MSCI emerging markets index. The period we suffered most was 2010 when the market had no clear trend. Since then we’ve clawed back and are ahead by about 300 basis points over the MSCI EM and this year as of end of June up 250 basis points over MSCI EM. The challenge for us has been to stay ahead of the curve. If we wait for some incredible plan to come out of Europe, we miss 30 percent of the rally,” he said. “The trick in the coming months are to look for the sign points that show we have moved away from kicking the can down the road and are moving to more long lasting structural changes.”

    Dedicated emerging market investment funds that have a heavy weighting in the BRICs have posted 16 straight weeks of withdrawals , losing a net $5.3 billion, according to Cambridge, Mass based fund tracking firm EPFR Global.

    The BRIC economies are slowing. They’ve expanded by 4.8 percent on average during the first quarter, but that’s down from nearly 7 percent last year.

    [​IMG]

    BRICs Share Of World Economy Up Four Times In 10 Years - Forbes
     
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    Emerging Markets Are Going To Spend A Massive $6 Trillion On Infrastructure In The Next Three Years

    Each week, more than one million people are either born in or migrate to cities around the world.

    Much of this rapid urbanization comes from the emerging world, putting tremendous pressure on that country’s feeble infrastructure.

    Pipes burst, roads are jammed, the water is tainted and the lights even go out.

    Merrill Lynch estimates that $6 trillion will need to be spent by selected emerging market countries over the next three years to meet the basic needs of these citizens. Water, transportation and energy investments will consume the bulk of these funds, accounting for 82 percent of total projected spending. Nearly every emerging market country Merrill researched will make an investment in all three.

    While each developing country could benefit from an upgrade, needs vary. This table details how different emerging market countries stand up against each other in terms of quality for the country’s roads, rails, ports, etc. We’ve highlighted the specific areas where the countries rank in the bottom half among the 133 surveyed by the World Bank.

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    You can see that Brazil has the worst overall ranking among the countries listed. Though the country is a large exporter, the extremely poor condition of the country’s roads and rails has hampered the growth of internal textile and farming industries. However, there is light at the end of the tunnel for the country, as the government already has a plan in place to improve these conditions (Read: Brazil’s Infrastructure Plays Catch Up).

    India’s infrastructure also rates poorly, and is slowing the country’s ascent to top of the world’s economies (Read: India’s Achilles Heel). One of India’s key issues is electricity. Merrill says that nearly 40 percent of Indian households do not have access to electricity, the worst of any major developing economy.

    Power is also a problem in South Africa where a major power plant has not been built in 20 years and blackouts/power outages have hurt the country’s mining industry in recent years. Merrill projects $54 billion will need to be spent on the country’s power system over the next three years, accounting for nearly half total infrastructure spending.

    China, which accounts for more than half of that $6 trillion estimate, ranks far above emerging peers in terms of infrastructure at the 65th percentile. Merrill says that one of China’s biggest needs is in water and environmental development. The firm estimates that the Asian country will need to build roughly 40,000 reservoirs at Rmb 12.5 million a piece to create an internal water distribution system and alleviate pressure when regions experience extended droughts such as what China is seeing presently.

    The needs of a growing global population set to reach 7 billion later this year and investment needed to supply these people with sufficient water, roads, housing and power is why we identified infrastructure as a megatrend in 2007 and made it the key investment theme of the Global MegaTrends Fund (MEGAX).

    Although some infrastructure investments, such as those in Russia, have seen delays as fiscal dollars have been diverted during the financial crisis, we continue to believe in the long-term viability of the story.

    Emerging Markets Are Going To Spend A Massive $6 Trillion On Infrastructure In The Next Three Years - Business Insider
     
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    World Competitiveness Yearbook 2012:

    [​IMG]

    The most competitive nations in Europe are Switzerland (3), Sweden (5) and Germany (9), which have export-oriented manufacturing and fiscal discipline. Meanwhile, Ireland (20), Iceland (26) and Italy (40) look better equipped to bounce back than Spain (39), Portugal (41) and Greece (58), which continue to scare investors.

    Emerging economies are not yet immune to turmoil elsewhere. China (23), India (35) and Brazil (46) have all slipped in the rankings, Russia (18) climbed only one place. All Asian economies have declined apart from Hong Kong (1), Malaysia (14) and Korea (22). Latin America also had a tough year, with every nation falling except Mexico (37).

    World Competitiveness Yearbook 2012: Hong Kong, US and Switzerland most competitive of 59 nations; Ireland rises to 20th ranking
     
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    The World of Competitiveness 2012

    IMD, a top-ranked global business school based in Switzerland, today announced the findings of its annual World Competitiveness Yearbook (WCY). The WCY rankings measure how well countries manage their economic and human resources to increase their prosperity.

    The most competitive of the 59 ranked economies in 2012 are Hong Kong, the US and Switzerland. Despite all its setbacks, the US remains at the center of world competitiveness because of its unique economic power, the dynamism of its enterprises and its capacity for innovation.

    Top Ranks - The World Competitiveness Scoreboard
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    The World Competitiveness Scoreboard presents the overall rankings for the 58 economies covered by the WCY. The economies are ranked from the most to the least competitive and the results from the previous year's scoreboard are shown in brackets.

    For further ranks and to view the official IMD press release dated May 31, 2012

    Business in Switzerland**|**AmCham Switzerland
     
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    Market Potential Index (MPI) for Emerging Markets - 2011
    March 16, 2012

    This indexing study is conducted by MSU-IBC to help companies compare the Emerging Markets with each other on several dimensions. Eight dimensions are chosen to represent the market potential of a country over a scale of 1 to 100. Each dimension is measured using various indicators, and are weighted in determining their contribution to the Overall Market Potential Index.

    (MSU-IBC:- International Business Center (CIBER). International Business Center : International Business Center (CIBER): Global Initiatives : Eli Broad College of Business at Michigan State University)

    [​IMG]

    Market Potential Index (MPI) for Emerging Markets - 2011 >> globalEDGE: Your source for Global Business Knowledge
     
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    Futron Releases 2012 Space Competitiveness Index

    Futron has released its 2012 Space Competitiveness Index marking the 5th anniversary of the yearly publication. According to the report, the United States remains the overall leader in space competitiveness but is seeing a decline for the 5th year in a row.

    The decline is attributed to enhanced capabilities in other countries while the U.S. is undergoing a transition with "significant" uncertainty.

    New to the index this year are emerging space nations Argentina, Australia, Iran, South Africa and the Ukraine.

    Four distinct tiers have emerged. The first tier has the U.S., Europe, and Russia. The second tier China, Japan, India, and Canada. The third tier South Korea, Israel, and Brazil. And the fourth tier Argentina, Australia, Iran, South Africa and the Ukraine.

    Futron says the top two tiers remain dynamic but have shown some stabilization while the bottom two tiers are subject to intense competition, with very small gaps in the competitive rankings.

    [​IMG]

    China gained the most competitiveness basis points in 2012, followed by Europe, India, and Israel. Japan lost the most basis points, followed by Canada, South Korea, and the United States. When compared against the larger group of 15 nations, Brazil falls to 11th place, just below Australia.

    As has been noted before International collaboration is increasingly taking shape as a concerted space competitiveness strategy, especially among smaller actors.

    Here's a list of some of the findings by country:

    - Argentina is adapting its satellite manufacturing sector for the international marketplace, exploring both commercial and government-to-government deals. It stands to benefit from increased investment in spacecraft subcomponents.

    - After more than a decade of dormancy, Australia is back. The government is refreshing its national space policy segment-by-segment, focusing on space not only a driver of innovation and expertise, but also for its benefits to Australian society.

    - Brazil has begun to re-examine its national space priorities, increased funding, expanded its partnerships, and laid plans for a new launch vehicle. It remains to be seen whether these steps will keep Brazil ahead of regional counterparts that are also emerging onto the space scene.

    - Canada retains a skilled space workforce, but delays in space policy refresh and implementation are significantly offsetting these competitive advantages.

    - China performed a record number of launches in 2012, surpassing the United States for the first time, while increasing investment in technical education programs and civilian research institutes.

    - Europe's integrated approach is complemented by the rise of new national space agencies across the continent--from the United Kingdom to the Czech Republic to Estonia--as well as more assertive space export financing.

    [​IMG]

    - India is enhancing its space-related technical education, while gradually progressing toward a completely self-reliant set of next generation launch vehicles.

    - Iran has made faster progress than any other newly emergent space nation. The tenor of Iran's space program--civilian or military--will hinge on geopolitics. Other international actors have substantial power to influence the future focus of the Iranian space program.

    - Israel, despite funding increases, remains challenged by its lack of domestic industry scale, and has difficulty sustaining a commercial space presence in global markets.

    - Japan, despite ongoing benefits from its policy reforms, is losing competitive ground relative to most other actors, and can benefit from a greater focus on commercializing its industrial base.

    - Russia's remains the world's launch leader, and promises to retain that role in the near term thanks to its vital role in transporting astronauts and cargo to the International Space Station, as well as the introduction of Soyuz launches from the European spaceport at Kourou. These strengths, however, are offset by weaknesses in retention of human capital talent.

    - South Africa is divided, from a budgetary standpoint, between space investments focused on societal usage of external assets already in space and investments focused on building the country's own space industrial base.

    - South Korea's two failed launch attempts contributed to an organizational shakeup, but have not reduced its determination to become the newest country to achieve independent spaceflight.

    - Ukraine has an enviable space industrial base, but limited domestic demand for its space hardware. It is aggressively seeking partners overseas, but has not yet engaged with key emerging markets.

    Futron Releases 2012 Space Competitiveness Index - Commercial Space Watch
     
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    India has improved space competitiveness by 10 percent

    Chennai, Aug 2 (IANS) India has improved its space competitiveness by 10 percent since 2008, says a study by the US-based Futron Corp.

    Futron Thursday announced the publication of its "Futron's 2012 Space Competitiveness Index: A Comparative Analysis of How Countries Invest in and Benefit from Space Industry".

    According to an executive summary of the report, of the 10 traditional space faring nations, only the US has shown five straight years of competitivenes decline.

    In contrast, China, Japan, Russia and India have improved their space competitiveness by 41 percent, 37, 11 and 10 percent respectively over their relative starting points from when Futron's benchmarking process began in 2008.

    In the 2012 study, Futron has added Argentina, Australia, Iran, South Africa and Ukraine to the 10-nation club, thereby taking the total to 15.

    The Futron report concludes that India gained 1.26 basis points over Brazil while the US lost 1.63 basis points against Europe (counted as one integrated actor).

    India was enhancing its space-related technical education while gradually progressing toward a completely self-reliant set of next generation launch vehicles, the report adds.

    The US remains the overall leader in space competitiveness. But its relative position has fallen for the fifth straight year as other countries enhance their capabilities.

    The US has undergone major transitions amid significant uncertainty, said Futron.

    According to the report, of 640 successful orbital launches in 2002-11, Russia tops with 255 followed by the US 191, China 87, Europe 81, Japan 24, India 17, Israel 3 and Iran 2.

    In respect of satellite manufacturing in 2002-11, the US with 388 satellites leads the club.

    Russia is second with 216, Europe 187, China 99, Japan 60, India 32, Canada 12, Israel 10, South Korea 6, Ukraine 5, four each by Argentina, Australia and Iran, Brazil 2, South Africa 1 and rest of the world 56.

    According to the report, international collaboration was increasingly taking shape as a concerted space competitiveness strategy, especially among smaller actors.

    Ukraine has an enviable space industrial base, but limited domestic demand for its space hardware.

    It is aggressively seeking partners overseas but has not yet engaged with key emerging markets.

    Russia remains the launch leader, and promises to retain that role in the near term thanks to its vital role in transporting astronauts and cargo to the International Space Station as well as the introduction of Soyuz launches from the European spaceport at Kourou.

    These strengths, however, are offset by weaknesses in retention of human capital talent.

    The Futron report say Iran has made faster progress in psace plans.

    The tenor of Iran's space programme - civilian or military - will hinge on geopolitics. Other global actors have substantial power to influence the future focus of the Iranian space programme.

    According to Futron, the space competitive index considers comparative space related strengths, weaknesses, opportunities and threats for the 15 leading space-participant nations: Argentina, Australia, Brazil, Canada, China, Europe, India, Iran, Israel, Japan, Russia, South Africa, South Korea, Ukraine and the US.

    India has improved space competitiveness by 10 percent | 427118
     
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    India ranks 2nd in retail realty investment momentum index
    Sep 12, 2012

    NEW DELHI: India ranks second among top 20 countries with the strongest momentum in retail real estate index and it lags behind China due to weaker investment prospects and a smaller presence of global retailer, according to a report by global property consultant Jones Lang LaSalle.

    "Our Retail Real Estate Momentum Index identifies 20 markets with the strongest retail real estate momentum. In top positions are China, India, Indonesia, Turkey, Brazil and Vietnam," JLL said in its report released today.

    The index aims to identify those countries with the strongest momentum in terms of consumer, retailer, developer and investor activity.

    China and India, unsurprisingly, top the Index, due to their favourable demographics, rapid urbanisation, strong consumption growth and significant expansion of modern retail infrastructures, it said.

    However, the consultant observed that "India falls short of China due to weaker real estate investment momentum and a smaller international retailer presence".

    On the future prospects, the report said "India will remain a two-paced market. From a retailer perspective, the country is clearly a key destination and although the retail market is yet to open fully to international retailers, when it does, major international retail groups will expand rapidly across India," JLL said.

    Although, India has permitted 100 per cent FDI in single brand, it is yet to allow FDI in multi-brand retail.

    The report said "...from a retail investment point of view, it is still unlikely that India will see a boom in foreign investment in the short to medium term."

    Commenting on the report, JLL India Chairman Anuj Puri said: "The Indian retail sector is in a dynamic state of re-invention, with the initial hit-and-miss approach based on perceived absolutes rapidly giving way to superior malls, more business-conducive locations and better business models."

    "We are able to track these positive market modifications by the way in which demand for retail real estate is changing in India. There is a clear thrust towards international benchmarks, with growing market knowledge and ever-increasing aspirations driving current and future growth," he added.

    JLL report also projected that "annual investment volumes in retail real estate could hit $180 billion globally by 2020 due to increasing cross-border activity, showing growth of around 50 percent on the projected volumes for 2012 ($110-125 billion)".

    The report confirms that in the last decade, more than $1 trillion of retail real estate has been traded around the world. Global direct investment has averaged more than $100 billion per year since 2004 and in 2011 annual volumes hit $122.5 billion.

    India ranks 2nd in retail realty investment momentum index - Economic Times
     
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    2013 Global Manufacturing Competitiveness Index
    November 16, 2012

    The U.S., the world’s largest economy, will slip to fifth place from third in manufacturing competitiveness in the next five years as India and Brazil race ahead, according to a report.

    China will remain in the top spot while India rises to second from fourth and Brazil jumps from eighth to third, according to the 2013 Global Manufacturing Competitiveness Index compiled by Deloitte Touche Tohmatsu and the U.S. Council on Competitiveness. The index, which was first introduced in 2010, reflects perceptions of more than 550 senior corporate leaders surveyed about how 38 countries rank currently and will fare in five years.

    Executives said access to talented workers is the top indicator of competitiveness, followed by a country’s trade, financial and tax policies, according to the report, which was to be published today.

    “From a U.S. perspective we didn’t change that much, but it’s just that others are moving rapidly,” Samuel Allen, chairman and chief executive officer of Deere & Co. (DE) and chairman of the council, said in a telephone interview. “We can’t tread water whether it be in education, tax reform or continued investment in infrastructure.”

    The current and future rankings reinforce the perception that the U.S. is “living off of investments we made a long time ago,” Allen said. He said he worries about factors such as deteriorating U.S. infrastructure that may increase costs to move goods, and energy policies that could boost fuel prices.

    ‘Continued Deterioration’

    While Deere, the world’s largest (DE) maker of farm equipment, has factories around the world, it still has invested about 57 percent of its capital in the U.S. in the last five years, Allen said. The Moline, Illinois-based manufacturer generated 61 percent of its revenue (DE) in the U.S. and Canada last year, according to data compiled by Bloomberg.

    “What you worry about is the continued deterioration of the critical success factors to manufacture here,” Allen said.

    The U.S. still can improve its competitiveness by reforming its tax structure and controlling its debt, Allen said.

    According to the report, Germany will move from second to fourth in the competitiveness ranking, South Korea will fall from fifth to sixth, Taiwan will go from sixth to seventh, Canada will drop from seventh to eighth, and Japan falls out of the top 10 list altogether, tumbling from 10th to 12th. Vietnam, meanwhile, will jump from 18th to 10th and Singapore will maintain its No. 9 ranking.

    ‘Sobering’ Findings

    Another “sobering” finding in the report is that in five years Germany will be the only European country in the top 15 spots for manufacturing competitiveness, as the U.K. and Poland slide, Allen said.

    The world is seeing a “power shift” of competitiveness toward developing countries, particularly those in Asia, said Deborah L. Wince-Smith, CEO of the Washington-based council that includes business, academic and labor leaders.

    China and other emerging countries are increasingly manufacturing advanced goods, said Craig Giffi, the U.S. consumer and industrial products industry leader at Deloitte who co-authored the report.

    While emerging manufacturing powers still face challenges in improving their infrastructure, supplier networks and legal systems, the countries are investing to drive growth and jobs, according to the report.

    “We are at an inflection point,” Giffi said. “For developed nations, it’s going to get harder.”

    Aside from the responses of top executives, the study was based on interviews with “key manufacturing players” and contributors from Deloitte, the council, the Indian Institute of Management in Lucknow, and Clemson University in South Carolina, according to the report.

    U.S. Competitiveness Slips as India Jumps in Five Years - Businessweek

     
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    India among top-5 global investment destinations
    Oct 29, 2012

    NEW DELHI: India has emerged as one of the top five investment destinations in the world, primarily on account of large market size and high customer potential, says a survey.

    Notwithstanding bullish business prospects, the survey also said that India is perceived as a risky place to make investments.

    The consulting firm BDO Global Market Opportunity Index 2012 covered more than 1,000 senior finance officers spread across 14 countries, including India, the US and the UK. The survey examines the views of the company's finance chiefs to expand in specific countries.

    In terms of investment destinations, India continued to be at the fourth spot in the list topped by neighbouring China. Other nations in the top five are the US (second), Brazil (third) and Germany (fifth).

    The survey attributed India's appeal as attractive investment destination to its large market size, customer potential and cheap labour.

    About India, the survey said that the professional services and technology, media and telecoms (TMT) sectors are driving investment in the country.

    Besides, planned investment in India is fairly consistent as 32 per cent of Cheif Financial Officers (CFO) surveyed in Saudi Arabia expect to enter this market.

    Among others in the top 10 are Russia, the UK, Australia, United Arab Emirrates and Mexico.

    "The 'big seven' (China, USA, Brazil, India, Germany, Russia and UK) lead the index as attractive investment markets, due to size and customer potential... (these nations) are the ones that CFOs feel most comfortable investing in," the survey noted.

    This year 66 per cent of the CFOs surveyed are setting their sights on a 'big seven' of attractive investment destinations.

    Besides, CFOs across the globe are finding it more difficult to conduct business overseas- certainly compared to three years ago on account of poor economic situation, increased regulation and greater competition.

    Notably, CFOs consider parts of Europe as risky as the politically unstable countries of the Middle East. Spain is perceived as a riskier investment destination than Egypt. Besides, Greece is seen as more risky than Libya and Syria.

    Iran is being seen as most risky to invest in by CFOs, followed by Iraq, Greece, Syria and Libya.

    Interestingly, three of the four BRIC countries are considered among the top 20 risky markets, Russia ranks ninth, China 13th, and India 20th. This shows that, while BRIC countries are seen as attractive markets for investment, they also come with some inherent perceived risk.

    India among top-5 global investment destinations: Survey - Economic Times
     
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    India ranks first in top 10 destinations for outsourcing
    Oct 8, 2012

    NEW DELHI: India ranked first in the list of top 10 locations for outsourcing business operations in 2011 but it has started facing competition from countries like Phillipines and Indonesia, global property consultant Jones Lang LaSalle (JLL) said in a report.

    "India, while still hitting the high notes on the offshoring market, will need to work hard to maintain its edge," JLL India Chairman and Country Head Anuj Puri said in a statement.

    Puri said when it comes to offshoring business operations to India, the traditional benefit of availability of a large talent pool, lower costs and quick turnaround time still apply.

    Outsourcing to India enables foreign companies to overcome office space costs in their own countries, he added.

    "India has the largest english speaking population in the world, ensuring optimal communication customer-vendor communications. However, India is beginning to face stiff competition on the outsourcing front from other markets like Phillipines and Indonesia," Puri said.

    The report said that the options for global location decision makers are extending.

    "Optimal decisions require a broader and more considered evaluation reflective of changing times. India continues to be a leading player in this environment, supported by its strong fundamentals," JLL Director - Corporate Research Tom Carroll said.

    However, he said the global corporations are increasingly focused on productivity, operational efficiency and future scalability, rather than straight cost-saves in the short term and therefore "India will need to ensure it reflects these concerns if it is to retain its leading position".

    "India consistently leads top 10 locations for FDI in shared service centres (2003-2011), the statement said.

    Malaysia and Poland were at the second and third positions, respectively, accoring to the report.

    India ranks first in top 10 destinations for outsourcing: JLL - Economic Times
     
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    Rs 51.46 lakh crore infrastructure outlay projected during 12th Plan

    NEW DELHI: The Planning Commission is aiming at a total outlay of Rs 51.46 lakh crore in the infrastructure sector during the 12th Plan (2012-17), short of the earlier projection of USD 1 trillion (about Rs 55 lakh crore).

    "The total investment during the 12th Plan is projected at Rs 51.46 lakh crore compared to Rs 27.74 lakh crore realised during the 11th Plan", a source privy to the development said.

    While the public investment in the infrastructure sector is expected to decrease to 53.32 per cent in the 12th Plan from about 62.47 per cent in the previous Plan, the share of private sector is projected to increase to 46.68 per cent from 37.53 per cent.

    Sources further said that infrastructure sector investment as percentage of the Gross Domestic Product (GDP) is expected to rise steadily to 10.40 per cent in the terminal year (2016-17) of the 12th Plan.

    The average investment in infrastructure sector for the 12th Plan as a whole is likely to be about 9.14 per cent of the GDP as compared to 7.22 per cent during the previous Plan.

    As per the details, the highest investment is envisaged in power sector at about Rs 15 lakh crore, roads follow at Rs 9.2 lakh crore, telecommunication at Rs 8.84 lakh crore and railways at Rs 4.56 lakh crore.

    These proposals will be placed before the meeting of the Full Planning Commission to be chaired by Prime Minister Manmohan Singh on Saturday.

    Although the Prime Minister in March 2010 had pegged the investment target for infrastructure sector during the 12th Plan at USD 1 trillion, the figures in dollar terms have to be revised in view of falling value of rupee.

    Rs 51.46 lakh crore infrastructure outlay projected during 12th Plan - Economic Times
     
    Last edited: Nov 18, 2012
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    BRICS can transform global governance

    NEW DELHI: Ahead of the BRICS summit here, India Monday said the grouping of five major emerging economies was not ranged against anyone but is "a responsible transnational grouping" that can play a critical role in reforming global governance.

    "We are not a bloc, not an ideological group ranged against anyone," Sudhir Vyas, secretary (economic affairs) in the external affairs ministry, said at the launch of the two-day conference by academics and experts from BRICS countries comprising Brazil, Russia, India, China and South Africa.

    It's in the area of global governance that BRICS can make its presence felt, he said.

    Vyas's comments came amid the oft-voiced worries in some influential sections in the West that the BRICS could turn into an adversarial grouping that could challenge the hegemony of the West in leading multilateral institutions.

    Underlining the unique nature of BRICS, Vyas stressed that it was not a geographical grouping like the ASEAN, or commodity-based like the Organization of Petroleum Exporting Countries ( OPEC) or security-based like the North Atlantic Treaty Organization ( NATO), but "a new growth pole in a multi-polar world".

    "It's a trans-continental grouping with increasing geo-political significance," he said. BRICS can engage with the international community in a serious manner as a responsible partner in the resolution of international crises, he stressed.

    More than 50 scholars from the five BRICS countries are taking part in the 4th BRICS Academic Forum meeting being hosted by Observer Research Foundation, a New Delhi-based public policy think tank.

    The forum is expected to generate ideas and proposals that will be considered by the leaders of the five countries at the fourth BRICS summit here March 29.

    India will host the BRICS summit for the first time since the leaders' meeting was first held in the Russian city of Yekaterinburg in 2009 at the height of the global financial recession. The theme for the New Delhi summit is "BRICS Partnership for Stability, Security and Growth".

    The fourth BRICS summit will focus on ways to deal with the festering global economic downturn and make a renewed pitch for reforming the global governance architecture which has been dominated by Western countries since the end of the World War II.

    BRICS has evolved into a powerful grouping of the world's leading emerging economies that, according to an estimate, accounts for nearly half the world's population, 30 percent of global landmass, 18 percent of global GDP and 35 percent of global foreign exchange reserves.

    The forum is also expected to focus on ways to ramp up greater intra-regional trade and look at ways to improve coordination on international issues in multilateral fora and developmental issues that include food security, energy security, public health, science and technology and urbanisation.

    BRICS can transform global governance: India - Economic Times
     
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    here, why can't the country like India, Brazil, Turkey, South Africa, Mexico, Russia, Indonesia of E7s members have AA ranking like China of E7 itself? why rest of E7+SA are ranked BBB by almost by all the credit agencies and are 'Blue' in this picture while the China is 'Green' with AA, similar to developed countries? its true that spending on infrastructure is the main problem why we are in blue.......

    [​IMG]
    World countries by Standard & Poor's Foreign Rating in April 2012

    List of countries by credit rating - Wikipedia, the free encyclopedia
     
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    Most Expansive Places to Live
    15-10-2012

    5th Moscow $17,566 per sq.m.

    7th Singapore $16,350 per sq.m.

    10th Mumbai $11,306 per sq.m.

    12th Sydney $8,774 per sq.m.

    20th Shanghai $6,932 per sq.m.

    29th Istanbul $4,569 per sq.m.

    47th Dubai $3,393 per sq.m.

    54th Bangkok $2,996

    68th Kuala Lumpur $2,182 per sq.m.

    73rd Jakarta $,2099

    World's most expensive cities

     
    Last edited: Nov 18, 2012
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    Mumbai, Delhi office rentals top Shanghai, New York
    Jul 25, 2012

    MUMBAI: Office rentals in Mumbai and Delhi continue to be among the highest in the world, beating the likes of New York, Washington or Shanghai despite a depreciating rupee. Renting office space in Mumbai and Delhi costs over $65 and nearly $73 per square meter a month, while the same costs $63 in New York $48 in Washington and $41 in Shanghai, property consultancy firm DTZ said in a report.

    In the last one year, the rupee has weakened over 25% against the US dollar making asset classes such as property cheaper for foreigners or investors buying in dollars. Rentals in Mumbai and Delhi have not moved much during this period, and despite this these markets have remained in the list of most expensive locations.

    Given the state of infrastructure, quality of buildings and estimated oversupply scenario, these cities are getting such pricing as multinationals continue to seek piece of growth here.

    "Around 300 of Fortune 500 companies are already sitting in Gurgaon, not to capture growth here alone, it's about absolute potential India is offering them," Rohit Kumar, head of research, DTZ India, said.

    Almost all brokers, consultants and even developers admit that commercial property segment in most major office markets is in oversupply.

    However, according to them, the main central business districts of these cities are not witnessing any new supply be it Nariman Point in Mumbai or Connaught Place in New Delhi. Rentals here are still holding their current levels due to lack of new supply despite increasingly more occupiers moving to or considering alternate business districts in the city. However, experts are not vouching for rise in rentals anymore.

    "Peak for rentals has already been achieved; we can't expect rates to move up any further from here considering the vacancy levels that are being witnessed. Rentals at a specific location like Bandra-Kurla Complex cannot be a norm but an exception," said Pranay Vakil, chairman of Knight Frank India.

    Mumbai, Delhi office rentals top Shanghai, New York - Economic Times
     

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