Mark Mobius on Investing in BRIC and African Economies

PERSPECTIVES: Nigeria, Kenya and Myanmar are among those emerging economies offering the most potential, while BRIC nations continue to offer strong growth

Franklin Templeton Investments 13 May, 2013 | 12:36AM
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This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Mark Mobius, executive chairman at Templeton Emerging Markets Group, explains his outlook and strategy for investing in BRIC and African economies. 

Growth in BRIC economies has slowed down in 2012 and early 2013. They are now facing major problems. How do you perceive the macroeconomic situation in each country? What are their major risks? 

It is a bit of an exaggeration to say that the BRIC countries are “facing major problems”. The BRIC countries’ GDP growth rates have slowed, but apart from Brazil, the other three economies are still growing much, much faster than most developed countries. Investors are concerned that China’s growth rate has slowed to 7.7%, but when was the last time the US, Japan, Germany or the UK saw that pace of GDP growth? One should also keep in mind that as these countries grow rapidly, the base gets bigger and it is therefore much harder to maintain the double-digit growth rates seen previously. China is now a US$6 trillion economy, second only to the US. The fact that an economy that size can grow at close to 8% is in itself an amazing feat.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Templeton Emerging Mkts Invmt Tr TEMIT184.60 GBX1.10Rating

About Author

Franklin Templeton Investments  is one of the world's largest asset management groups, offering UK investors a range of over 80 funds across different market sectors.