Bloomberg Markets Magazine has released its ranking of the most promising emerging markets for investors in 2012, and it makes for interesting reading.
Under the model used by markets reporter Michael Patterson — who takes into account International Monetary Fund four-year economic forecasts, World Bank demographic data and Bloomberg market figures, among other measures — most of the BRIC nations have slumped near the bottom of the list of the top 15 emerging markets, if they make the cut at all.
Except for one, that is.
15. India
Total score: 42.3
Despite India's stellar GDP growth, and its cosy position in the middle of the BRIC acronym (Brazil, Russia, India and China), it is let down by its massive inflation rate, relatively high government debt-to-GDP ratio, and the difficulty of business there.
However, Brazil fared worse. It's economy shrank in the third quarter for the first time in two years, dragging it out of Bloomberg's top 15.
Source: Bloomberg
14. Mexico
Total score: 44.0
While it's relatively easy to do business in Mexico, where inflation is also fairly moderate, it has the lowest projected GDP growth among the emerging markets analyzed. Its stocks are around the mid-range when it comes to price-to-earnings rankings, and it sits in roughly the same place with government debt levels.
Source: Bloomberg
13. South Africa
Total score: 44.7
Another GDP underperformer, South Africa also suffers from a high rate of inflation and currency volatility. However, it's one of the easiest emerging markets to do business in.
Source: Bloomberg
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