What have you always wondered about the economy? Tell Us

Investors’ global appetite growing

Ashley Milne-Tyte Jul 12, 2007


Scott Jagow: Despite its problems, China is still the fastest growing economy in the world. Last month, foreign direct investment hit $6.5 billion. That’s a 22 percent increase over last year. A new study from IBM and the Economist Intelligence Unit looks at this wave of cash pouring into emerging markets. Here’s Ashley Milne-Tyte.

Ashley Milne-Tyte: Twice as much growth is likely to occur in emerging markets than mature markets like the U.S.

That’s not to say the U.S. market won’t continue to dwarf others, says IBM’s Wendy Feller, but there’ll be a lot of competition from up-and-comers like China, Indonesia and Turkey.

Feller says institutional investors could stick to their own profitable backyards until recently, but things are changing.

Wendy Feller: It’s going to be more and more difficult to innovate and to create the level of profits that you’ve been able to do in the past. So organizations are having to look global to earn the level of profits they anticipate going forward.

She says newly-educated, Internet-savvy individual investors in countries like India may help spur the global markets boom.

Also, she says, more and more financial services firms are marketing international assets to their clients.

In New York, I’m Ashley Milne-Tyte for Marketplace.

News and information you need, from a source you trust.

In a world where it’s easier to find disinformation than real information, trustworthy journalism is critical to our democracy and our everyday lives. And you rely on Marketplace to be that objective, credible source, each and every day.

This vital work isn’t possible without you. Marketplace is sustained by our community of Investors—listeners, readers, and donors like you who believe that a free press is essential – and worth supporting.

Stand up for independent news—become a Marketplace Investor today with a donation in any amount.