Rapid-Growth Markets Forecast: July 2014
Rising urbanization and new technologies are key drivers for global growth. Despite the political risks and economic headwinds, most rapid-growth markets (RGMs) are poised for strong growth.
The fast growth in urban populations across the RGMs brings many opportunities for business. These include:
- Rising demand for consumer goods and services
- Potential for companies to shift production to locations where employment, infrastructure and the investment climate is improving fast, but wages remain competitive
RGMs have recovered somewhat from the financial turmoil in the second half of 2013 and early 2014. A gradual recovery will see growth above 4.5% next year.
While prospects for the near term in our RGMs may be more subdued, over the medium term they have strong growth potential. The major cities within these countries are touted to be the powerhouses of global growth, with Asia dominating the global landscape.
What companies should do?
Companies need to update their plans for different geographies and sectors and realign their decision-making strategies. Successful businesses will lay out roadmaps for the future, avoiding the temptation to be distracted by past trends.
Organizations should also be on the lookout for emerging “urban clusters” that generally form near upcoming transport and trade routes.
“The rapid-growth markets that harness urbanization, and other forces that are changing our world, by shifting to sustainable technologies and investing in infrastructure can expect to see a growth dividend in the future.”
Rajiv Memani, Chairman of the Global Emerging Markets Committee