Colombia is also an economic promise

Just as the BRIC group (Brazil, Russia, India and China) will experience an outstanding economic growth in the coming years, the CIVET, five emerging potential countries, including Colombia are starting to shape.

To make facts and trends in the global economy easier to analyze, experts have divided the countries that have some characteristic time in common into groups.

Therefore, it is not uncommon to hear of the BRICs, the G7, the G20 and the PIGS, among others.

Depending upon the element they share, some of these acronyms can be a great recognition or punishment, and only a few, including Colombia, are among this new select group.

Recently, a senior executive of HSBC Group, owner of the bank that bears the same name and is one of the largest in the world, included the country into one of these selected 'tribes'.

The new clan is called CIVETS, (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) and the name was taken from the civet, a mammal that looks like a cross between a cat and a raccoon, present in Asia.

The reason to lump them all into one basket is that these countries have large populations, good potential growth and they are now opening to the world.

Julian Cárdenas, manager of Investigaciones de Corredores Asociados, explains that these clusters can provide recommendations to simplify and diversify the portfolios of investors. For example, for a large international resource allocator it is totally natural to think about investing in the BRIC, and then its resources go to the markets of Brazil, Russia, India, and China.

Therefore, it is important for Colombia to 'get out of the pile' and be included among a group of countries which can be constantly mentioned in the economic analysis.

There are also other groups, but these are done on their own, to establish trade relations and cooperation. Among them is the IBSA (India, Brazil and South Africa), established in 2003.

The CIVETS, the new club

Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa are the countries members of a new economic clan: the CIVETS.

The term was coined by the HSBC Group Chairman, Michael Geoghegan, during a speech in which he emphasized that the global economy is entering another phase and thus the new line of business is in the south, i.e. in emerging countries. Apart from the BRIC, the officer called attractive to the CIVETS, after they have dynamic economies, relative political stability and a large population, young and growing.

Analysts believe that this recognition should not be taken lightly, as it becomes an opportunity to attract investment but also, requires the countries to be ready, or if not, resources will migrate to those who are.

The 'E' are a counterweight to the 'G' group

For a long time, there was nothing more unique than being one of the countries which are among the number that accompanies the G: G-7, G-8; to be more inclusive there was also the G-20. These are the industrialized countries and the decision makers on the direction of the economy. However, the crisis that erupted in 2008, and whose impact has been felt especially among these countries, caused the emerging ones to begin to speak out and demand a greater role even far beyond the G-20.

The emerging countries have burst onto the economic framework, not only because they have become frontline actors in financial markets, but have also shown strong growth and felt less impact from the crisis. They have a growing demand and have become major suppliers of raw materials in the world.

The PIGS: mired countries

Sometimes it is better to go unnoticed and not be locked into a group like this. The PIGS (Portugal, Ireland, Italy, Greece and Spain) are recognized for being in trouble. These European countries have such a level of debt they are in danger of going bankrupt.

Although some are better than others, just Greece and the aroused fears in the world are the leading cause of the clutter that has been in the markets this year. Therefore, the European Union and the IMF had to throw a millionaire lifeline that cost more than 110,000 million Euros. However, other countries also generate concerns and therefore shares in the world continue to decline and the euro to lose value.

The BRIC and other letters

In the business world it is totally regular to talk about the BRIC (Brazil, Russia, India, and China). This acronym has been used for more than six years, when Goldman Sachs analyst firm began using it, after considering these four economies as the largest in the world. Also, the firm considered that in the near term of 50 years they will be even more industrialized than the United States, Japan and Germany. In the last two years the concept has been reinforced, while the current advanced countries as are just beginning to recover from the hangover of the crisis, the BRIC countries were not only less affected but also went ahead and are a major engine of the economy, because of their large population and volume of demand for all goods. Sometimes, the BRIC is added the M of Mexico or S of South Africa.

Taken from Portafolio.com.co

http://www.portafolio.com.co/economia/economiahoy/ARTICULO-WEB-NOTA_INTERIOR_PORTA-7720921.html