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Who are the rapid-growth markets? - EY - Global

Rapid-growth markets
Who are the rapid-growth markets?

4.2 billion people live in our 25 rapid-growth markets, over 60% of the world’s population.

Criteria for rapid-growth markets

Real GDP growth 2000 - 10
EY - Rapid growth chart

Source: Oxford Economics

EY - Rapid growth chart

We define this set of 25 rapid-growth markets on the basis of three key criteria:

  • Proven strong growth and future potential
  • Size of the economy and population
  • Strategic importance for business

Rapid-growth markets’ role in the world economy

Share of world GDP
in PPP terms

EY - Rapid growth chart

Source: Oxford Economics

EY - Rapid growth chart

The strong expansion enjoyed by RGMs in recent years means that they already represent a significant proportion of the world economy.

For example, they account for 31% of world GDP measured at market exchange rates and 40% of when measured in purchasing power parity (PPP) terms, which adjusts for differences in the relative cost of living.

Clearly, the so-called BRIC economies—Brazil, Russia, India and China—are by far the largest of our RGMs.

Population of rapid-growth markets

Population level
in 2010, millions

EY - Rapid growth chart

Source: Oxford Economics

EY - Rapid growth chart

Altogether, 4.2 billion people live in our 25 RGMs, over 60% of the world’s population.

That underlines both their potential and their strategic importance to business. They represent a massive pool of labor for production while the advanced economies age and also a source of rising demand for goods and services as the middle class in these countries develops.

Exports and investments in rapid-growth markets

Exports as % of GDP in 2010
EY - Rapid growth chart

Source: Oxford Economics

EY - Rapid growth chart

Not surprisingly, openness to trade is one of the defining characteristics of rapid-growth markets, especially in Asia. Exports account for around 50% of GDP in the rapid growth markets as a whole compared with 13% in the US and 41% in the Euro area.

Many rapid-growth markets have been very successful in attracting foreign direct investment (FDI). FDI inflows to all rapid-growth markets have risen from US$205 billion in 2000 to US$444 billion in 2010, and they now receive around 50% of global FDI inflows.


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