Mexico has attracted more M&A activity in 2010 than any other EM economy with the exception of China, knocking the other regional heavyweight Brazil into third place. With the Mexican peso outperforming most other EM FX majors over the past few months, the benchmark IPC equity index continuing to push record highs, and the country’s… [Read more]
The stellar import performance seen in recent months, which tipped the trade account into a US$7.2bn deficit in March, is in line with China’s booming domestic demand story. However, it seems to me like the rise in imports is at least partly a reflection of the Chinese government’s desire to diversify its dollar reserves into… [Read more]
I have long believed that it is misleading to speak of ‘Asia’ as if it were one cohesive entity. Asia is a diverse region spanning more than two billion people with vastly different levels of economic development, political systems, histories and cultures. These differences are increasingly evident in how the region’s economies are faring in… [Read more]
For the first time in nine months, Japanese exporters had reason to cheer in March after shipments fell just 45.6% compared to the equivalent year-ago period. Yes, that’s correct: a 45.6% y-o-y contraction in exports is now considered to be good news in Japan. To be sure, it will have positively been music to exporters’… [Read more]
I recently visited Ho Chi Minh City (formerly Saigon), where my colleagues and I met many local business leaders (mainly Vietnamese, but also foreign expatriates). Although Vietnam is undoubtedly suffering from the global recession – real GDP growth slowed to just 3.1% y-o-y in Q1 2009 from 7.4% in Q1 2008 – the country should… [Read more]
Another research trip to South Africa, and yet another set of indications that the country will be affected badly by the global economic crisis. Back in November 2008, I highlighted how the country would be hit hard by the collapse in demand in its export markets, a concern which now represents the key driver of… [Read more]
If you are an exporter, here is a short quiz to determine what kind of a year 2009 is likely to be. Give yourself one point for every statement that applies to you. Your business involves exporting cheap consumer goods to Western consumers, who find themselves struggling to pay off their mortgages, let alone US$1,000+… [Read more]