The International Credit Rating Agency, Standard & Poor’s declared a benchmark report about the emerging economies in the world. According to the S&P, the stability of the indebtedness of the developing economies will continue in this level. In 2017 about 20 emerging economies seem to require approximately $ 1.07 trillion by means of borrowing. This means the total borrowing amount in commercial sources will increase $ 23 billion per year. In fact, this amount is nearly %4.3 of the total gross domestic products (GDP) of these developing countries.
The emerging economies stated in the benchmark report of S&P are Turkey, Thailand, Argentina, Brazil, China, Colombia, Egypt, Hungary, India, Indonesia, South Africa, Qatar, Malaysia, Mexico, Pakistan, Philippines, Poland, Russia, Saudi Arabia and Venezuela. The reports gave predictions about the borrowing levels of these countries. The estimated increase in the borrowing level will include fifty fifty the refinancing of the current long term debts.
According to the report, in 2017 the long term borrowing amount of China is expected to be $ 371.4 billion whereas it may be $ 191 billion in Brazil, $ 112.1 billion in India and $35.1 billion in Turkey.
Another important prediction of this benchmark report is about the hopeful rise of the value of the dollar. It ıs stated that the dollar is estimated to be stronger than 2016. In fact, the US government is showing all efforts to gain dollar more. Accepting the fact that, these efforts will generally bring short term gains to dollar. There is a huge balloon hidden beside the dollar that will be hard to fill.
Beside this, the rise of the value of the dollar is causing such increases in the debts of the emerging economies.