Investing in Costa Rica is expected to continue to see growth as according to Ernst & Young culture, legitimate institutions and policies considered legitimate make Costa Rica as an attractive economy to attract investment. Costa Rica ranked 19 in the Top 20 emerging economies and is the fifth in Latin America after Brazil, Mexico, Chile and Argentina.
According to the rank index, China is the leader in the emerging market economies, followed by India, Russia, Brazil and Turkey. The Eastern European economies are in the top 20, while between has only one country in the list, South Africa, situated in the seventh.
Alexis-Marchay Karklins, co-leader of the center of emerging markets at Ernst & Young, said that “recent trends have made the deployment and use of soft power crucial and it is not surprising that the BRIC countries (Brazil, Russia, India and China) dominate this index. First, the recent rapid growth of emerging market economies, secondly, the issue of soft power has become vital as countries compete to attract foreign direct investment “.
Emerging engine of economic growth
Originally many of the Latin countries, Costa Rica included, were only attractive for its natural resources, source of cheap labor and low-cost manufacturing, but now these markets are now seen as promising markets. Rapid population growth, sustained economic development and a growing middle class, are making many companies view these countries in a whole new way.
As emerging markets/counties rise, so do their own business. Many companies that previously did not pose a competitive threat to large multinational corporations are able to compete. These leading emerging markets represent a significant change in the global competitive environment, a trend that will only be strengthened as they grow in size and seek new opportunities beyond their traditional domestic markets.
Ernst & Young estimate that 70% of global growth in the coming years will come from emerging markets, and of these, China and India will account for 40% growth. Adjusted for variations in the equality of purchasing power, the rise of emerging markets is even more impressive: the International Monetary Fund (IMF) forecasts that total GDP could exceed that of developed economies in 2014. These nations attract nearly 50% of global inflows of foreign direct investment (FDI), accounting for 25% of FDI outflows.
In 2020, the BRICs are expected to represent almost 50% of global GDP growth. The Soft Power Index in emerging economies is measured according to 13 variables, grouped into three main categories: global image, overall integrity and global integration.
The Costa Rica News
San Jose, Costa Rica
