Two criteria for investors to analyse emerging countries: Savings and the dynamism of domestic demand

We believe investors should use two criteria to analyse and differentiate between emerging countries : Savings: emerging countries with a low national savings rate struggle , because when they invest to boost their growth they have chronic external deficits that lead to a currency crisis; Domestic demand: the recent worldwide trend has been for production and therefore investment to be located close to the final buyers of goods. When it comes to attracting investment, t his gives a clear advantage to emerging countries that either have dynamic domestic demand or are part of a regional bloc with dynamic domestic demand. Emerging countries that have both a high national savings rate and dynamic domestic demand include China, India, Malaysia, Indonesia and Vietnam.