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Capturing the Growth Opportunity in Emerging Markets

September 28, 2011 • Global Business, STRATEGY & MANAGEMENT

By Henry Egan and Armen Ovanessoff

Over the next five years, emerging markets will account for much of the globe’s economic growth. To compete on this terrain, companies in both emerging and developed markets must first grasp the true size of the opportunity, and then be prepared to act quickly.

Emerging markets are growing rapidly as a share of global GDP, but just how rapidly may come as a surprise. Consider that between 2010 and 2015, global economic output is forecast to rise by $8.5 trillion. Emerging markets are expected to account for about 62 percent of that growth. (See figure 1) In other words, emerging markets aren’t just growing faster than developed markets; they are set to contribute a greater share to the absolute expansion of the global economy than developed nations will. Just one snapshot: India will contribute more growth in this period than either Germany, Japan, the United Kingdom, France or Canada.

And that growth isn’t just coming from And that growth isn’t just coming from the BRIC nations – Brazil, Russia, India and China. Many indicators point to rapid and sustained levels of growth in many other emerging markets. For example, Argentina, Chile, Indonesia, the Philippines, Qatar and Vietnam are all expected to grow at more than 5 percent in 2011.1

While important at a macroeconomic level, this phenomenon is also visible in several industries. For example, in electronics and high tech, Accenture research indicates that emerging markets will account for 88 percent of the growth in mobile phone sales, 83 percent of the expansion in PCs purchased, and 66 percent of additional TV sets sold over the next five years.



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