Poland, Brazil `on Their Way’ to Developed Market Status, Barclays Says

Poland, Brazil and the Czech Republic are among 10 developing nations “on their way to graduate to the developed world” because of their fiscal consolidation and reduced reliance on external funding, Barclays Capital said.

Singapore, Chile, South Korea, Taiwan, Israel, China and South Africa were also named “advanced developed markets” with risks similar to developed nations and higher returns, Barclays analysts said in a report dated Oct. 5.

Permanent changes in monetary and fiscal policies boosted the countries’ macroeconomic stability and credibility and made them less vulnerable from external shocks, Eduardo Levy-Yeyati in New York and Piero Ghezzi in London wrote in the note.

“The global crisis marked a turning point in the way financial markets think of the economies grouped under the emerging-markets umbrella,” the analysts wrote. The 10 countries “showed a growing distance from the high-risk stakes stereotypes of the 1990s” and now offer “a future of solid growth without the volatility and tail risk characteristic of the original emerging-market countries,” they wrote.