Each week Frontier Strategy Group’s global team shares their view on key media stories, and what the implications are for businesses that operate in emerging markets. For more information about how to contact our analysts, send us an email.
Pratima Singh on “India to Add 8 New Major Ports To The 12 Already Functional“
“The government aims to improve India’s infrastructure by investing in ports, which are currently running overcapacity. Increasing public investment in port infrastructure will have long term benefits through lower costs to trade. Multinationals should closely monitor detailed timelines for port modernization.”
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Mark McNamee on “Volodymyr Groysman Approved as New Prime Minister By Ukraine’s Parliament”
“While a new prime minister and cabinet have been approved, ending the political crisis, the ruling coalition is fragile and its reform credentials are highly suspect. Foreign investors will likely see new elections later this year and an increased threat of protests as reform progress likely falters.”
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Danyi Yang on “China GDP Growth Slips to 6.7% As Stimulus Eases Slowdown“
“Despite modest recovery in March and a higher-than-expected Q1 GDP growth rate of 6.7%, the Chinese economy is still exposed to risks of weakening industrial production and high domestic leverage. Successful economic rebalancing will require more determined policy efforts to curb shadow banking activity and implement market-oriented reforms in 2016.”
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Alec Lee on “Brazil Real Drops After $5.25 Billion Central Bank Intervention”
“The Central Bank is not only looking to signal its target price for the currency, but also hoping to ease volatility. While FSG expects the real to continue to strengthen in the short term, in the case of an impeachment a new Michel Temer government will face numerous difficulties in reorienting the economy, making it likely that the real will depreciate again once these challenges become evident.”
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Anna Rosenberg on “More Hotels Are Being Planned in Africa Than Ever Before“
“The current economic slowdown does not deter investors that believe in the long-term opportunity that many SSA markets represent. In any case, there is still plenty of space for more hotels across most economies in the continent. Existing hotels are not enough and overpriced and more competition in the sector could lead to lower costs and opportunities for companies selling into the sector.”
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