The Mist Countries

Topics: Inflation, Monetary policy, Macroeconomics Pages: 21 (3592 words) Published: November 22, 2012
THE THE MIST COUNTRIES – Mexico, Indonesia, South Korea & Turkey: Are MIST countries becoming the new BRICs?:
For many investors, Mexico, Indonesia, South Korea and Turkey have taken over from the BRICS becoming the four biggest emerging markets, and growing faster than their major rivals. BRIC inventor Jim O’Neil from Goldman Sachs proposed the new term MIST term for Mexico, Indonesia, South Korea and Turkey, which are the four biggest markets in the Goldman Sachs N-11 Equity Fund. The MIST economies more than doubled during the last decade, according to Bloomberg, and continue surging despite global economy concerns. Mexico’s IPC Index has climbed 11% this year, comparing with a 2.8% growth of Brazil’s Bovespa. Meanwhile Turkey’s ISE National 100 gained 28 percent, compared to 13% gain of BSE India Sensitive Index and 2.6% gain in Russia’s MICEX. Though the MIST nations outperformed the BRIC in pace of growth, its economic output still can’t approach the BRIC. Total GDP for the MIST nations was $3.9 trillion last year, compared to $13.5 trillion of BRIC economies and $7.3 trillion for China alone. Comment:

If you go to the Wikipedia page about BRIC you will read that Mexico and South Korea tried to become part of BRIC. It was used the name BRIMC....But it failed because the BRIC were Core-Hubs in their areas (Eurasia, South America, Far East, South East Asia) while the MIST are a second dependent layer around the Hub. In fact, and to be precise there are three World Hubs-Cores: USA, GERMANY (Eurozone) and CHINA. Turkey depends on Europe, Mexico depends on the US, South Korea depends on China....So, if those hubs are hit, the MIST will be hit MUCH MORE, as we remember from the Bhat crisis. Russia could be an Eurasian and Energy Hub-Core....even if still not fully developed, so it is still a layer of the E.U. Hub.

Mexico Economy – overview:
Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Since the implementation of the North American Free Trade Agreement (NAFTA) in 1994, Mexico's share of US imports has increased from 7% to 12%, and its share of Canadian imports has doubled to 5%. Mexico has free trade agreements with over 50 countries including Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan - putting more than 90% of trade under free trade agreements. In 2007, during its first year in office, the Felipe CALDERON administration was able to garner support from the opposition to successfully pass pension and fiscal reforms. The administration passed an energy reform measure in 2008 and another fiscal reform in 2009. Mexico''s GDP plunged 6.2% in 2009 as world demand for exports dropped, asset prices tumbled, and remittances and investment declined. GDP posted positive growth of 5.4% in 2010 and 3.8% in 2011, with exports - particularly to the United States - leading the way. The administration continues to face many economic challenges, including improving the public education system, upgrading infrastructure, modernizing labor laws, and fostering private investment in the energy sector. CALDERON has stated that his top economic priorities remain reducing poverty and creating jobs.

GDP (purchasing power parity)
$1.657 trillion (2011 est.) 
$1.596 trillion (2010 est.) 
$1.514 trillion (2009 est.) 
note: data are in 2011 US dollars

GDP (official exchange rate)
$1.185 trillion (2011 est.)

GDP - real growth rate
3.8% (2011 est.) 
5.4% (2010 est.) 
-6.2% (2009 est.)

GDP - per capita (PPP)
$15,100 (2011 est.) 
$14,400 (2010) 
$13,600 (2009) 
note: data are in 2011 US dollars

GDP -...
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