The Denver Board of REALTORS® Local International Committee hosted their quarterly event, Emerging Markets – Doing Business in Politically-Sensitive Countries, yesterday afternoon.  The Board continually sponsors internationally orientated educational events laden with informative, pertinent and solid content for the internationally orientated real estate professional.

Ironically, from two of the speakers from the Colorado Office of Economic Development and International Trade we were surprised to learn that emerging markets are quickly becoming main markets.  These markets account for 80% of global GDP growth whereas the G7 Markets include the remaining 20% global GDP growth.

These high growth emerging markets include the following:

• BRIC:  Brazil, Russia, India & China
• CIVETS:  Colombia, Indonesia, Vietnam, Egypt, Turkey, & South Africa
• S. Korea, Mexico

Companies are relying heavier on emerging growth to compensate for stagnation.  Though high growth may welcome high risk as these markets can geographically disperse with large populations spread over a huge geographical areas.  Also, cultural barriers, lifestyle and language differences may complicate matters.

They include a large base of low income buyers and small businesses however they also afford low buying power and fragmented markets.

Often interested market partners may face immature business environment including an insufficient distribution infrastructure, poor payment cycles and lack of local knowledge and customs.

The opportunities include explosive growth and sales objectives are different from developed world.  Also, sales processes and systems are constantly under flux.

Discussion included Europe, Greece, Ireland, Portugal and Spain then moved onto East Central Europe and Turkey.

European countries face a combination of high debt loads and other economic problems that will force spending cuts and tax increases in coming months. Debt-to-GDP ratio more than 100 percent in the most imperiled European nations (Greece, Ireland, Portugal, Spain, Belgium, and Italy)

Turkey is one of the preferred emerging markets for investment from developed countries.  Turkey is expected to have the highest GDP growth, 7.3% in 2010 and 4.5% in 2011 in the Europe, Middle East and Africa (EMEA) area.

Finally, bridging North America and South America, Central America includes Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama and has a population of approximately 31 million people.

The United States is Central America’s largest trading partner.  The U.S. CAFTA-DR (United States Central American –Dominican Republic Free Trade Agreement) will celebrate its 5-year anniversary in March of 2011.

In South America, Brazil, Columbia and Chile are all showing stability and growth.  Brazil will host the World Cup and Summer Olympics.  Columbia is showing signs of stabilization.  Chile while smaller, affords opportunity with transparency and ease of doing business.

The Office of Economic Development and International Trade (OEDIT) contributed these statistics and serve to foster a positive business climate that encourages quality economic development through financial and technical assistance provided in support of local and regional economic development activities throughout the State of Colorado.

For the news of upcoming local International events visit the Denver Board online at www.DenverRealtors.org or the Colorado Council of FIABCI-USA’s website, ColoradoCouncilofFIABCIUSA.org.