BRICs face tough competition
Ernst & Young’s annual globalisation report suggests that there are increasing challenges when operating in some BRIC (Brazil, Russia, India and China) economies, as well as slowing growth in some of these markets.
As a result, nearly half of the survey’s respondents expect an increase in protectionism in the BRIC countries. In contrast, respondents see a decline in protectionism as more likely in other, smaller, rapid growth markets.
These markets show consistently high economic growth close to that of the leading BRICs.
Turkey, Mexico and Indonesia closely shadow China and India in terms of GDP growth from 2000 through 2015, for example, while Peru, Colombia, Venezuela, Malaysia and Vietnam, as well as several countries and regions in Africa, are all shaping up to be among the most dynamic parts of the world for investment.
The number of executives questioned who view rapid-growth markets, other than the BRICs, as the most important source of new revenue nearly doubles, from 26% today to 45% in three years time.
They are planning accordingly, with South Africa, Indonesia, Mexico and Turkey reported to be the most competitive locations.
Despite weak growth in 2012, and an uncertain economic outlook in many markets for 2013, globalisation is still increasing among a majority of the world’s 60 leading economies, according to the report, "Looking beyond the obvious: globalisation and new opportunities for growth".
As well as the growth of the "second tier" markets such as Mexico and Turkey, the report also forecasts the rise of smaller European countries, including Belgium, Slovakia and Hungary.