Foreign direct investors have a high opinion of emerging economies, a survey from accountancy Ernst & Young shows.
The company surveyed 814 direct investors on their perception of countries' attractiveness as investment destinations. All four BRIC states - Brazil, Russia, India and China - were in the top six in Ernst & Young's survey; China and India were Nos. 1 and 2, respectively. The U.S. finished third, followed by Russia, Germany and Brazil.
The inclusion of America and Germany on the list is not surprising: Both continue to be economic juggernauts, even as they are increasingly dogged by sovereign debt concerns. And foreign direct investors' positive sentiment on the BRIC nations is reflective of their desire to capitalize on those countries' rapid growth, the Ernst & Young researchers suggested.
"In 2010 investors look at a forecast global growth of 4 percent, see that only 1 percent is likely in Europe and turn their eyes to high-growth markets," Reuters quoted them as saying.
The news could be actionable for equity investors. Emerging-market plays have grown in popularity in recent years - particularly since the largest emerging-market nations sidestepped the global recession - and Ernst & Young's findings suggest that equity investors should remain confident in the strength of the BRIC countries.
