Sunday, January 15, 2017
Asia's smallest economies also the fastest growing
Asia's smallest economies are growing faster than giants like China, according to the World Bank.
Cambodia, Laos and Myanmar will post the most rapid expansions in Asia after India from 2017 to 2019, sustaining growth rates of close to 7 per cent, according to forecasts released this week. Among the least developed countries, the combined size of the three economies is less than US$100 billion (S$142.58 billion), about a third of neighbors like Singapore, Malaysia and Philippines.
After decades of military rule, Myanmar is liberalizing its economy and adopting market reforms after a transition to democracy. China is its largest trading partner and is building a special economic zone, power plant and deep-water seaport on the west coast.
My readers have been on this for several years and I have invested in Myanmar (Yoma Strategic Holdings) and Cambodia (NagaCorp). These countries should continue to grow at a rapid pace. having a long term perspective is best in my view if one chooses to invest in these places. It is really not too hard as 7% compounded growth means the economy is doubling every ten years.