• Home
  • Management
  • Startup/Entrepreneur
  • Gamechangers
  • Tech/E-Commerce
  • Career
  • Global Business
  • Women's Business

  • The New BRICS On The Block: Which Emerging Markets Are Up And Coming?

    The so-called “CIVETS” countries — Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa — are now touted as hot markets because they have diverse economies, fast-growing populations, relatively stable political environments and the potential to produce outsized returns in the future.

    Building on the foundation of the well-known BRIC countries — Brazil, Russia, India and China — a new set of up-and-coming emerging markets is gaining attention. The so-called “CIVETS” countries — Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa — are now touted as hot markets because they have diverse economies, fast-growing populations, relatively stable political environments and the potential to produce outsized returns in the future.

    Far-flung geographically and shaped by vastly different cultural, religious and political structures, the CIVETS show the potential to develop rapidly and reward those willing to take on emerging market risk beyond the more-established BRIC countries, experts say.

    The BRICs were christened a decade ago by Goldman Sachs then-chief economist Jim O’Neill. Goldman Sachs now predicts that the BRIC’s combined GDP will surpass U.S. GDP by 2018 and that they will account for half the global economy by 2020. The CIVETS owe their acronym to the Economist Intelligence Unit (EIU), which forecasts the countries will grow at an annual rate of 4.5% during the next 20 years. That’s only slightly below the 4.9% average predicted by the EIUfor the BRIC nations, and far above the rate of 1.8% forecast for the world’s richest — or “G7” — nations. (For what it is worth, a civet is a nocturnal, cat-like mammal found in at least two of the CIVETS countries — Indonesia and Vietnam.)

    In a recent survey conducted by Knowledge@Wharton and the global communications firm Fleishman-Hillard, a majority of corporate executives, investors and business leaders indicated that they would be interested in doing business with multinationals in the CIVETS countries. Respondents said they were most attracted to CIVETS because of low labor and production costs and the countries’ growing domestic markets. When asked to identify weaknesses, the survey participants cited political instability, corruption, a lack of transparency and infrastructure, and homegrown companies without much of a reputation or brand identification.

    Read More:

    http://knowledge.wharton.upenn.edu/article.cfm?articleid=2679


    Upstart: Business and Management for 29-40 Year Old Professionals

    Filed Under: Global Business

    Tags:

    About the Author:

    RSSComments (2)

    Leave a Reply | Trackback URL

    1. […] Global Business | The New BRICS On The Block: Which Emerging … […]

    2. […] Global Business | The New BRICS On The Block: Which Emerging … […]

    Leave a Reply

    You must be logged in to post a comment.