Emerging Economies and their Potential

Emerging Economies and their Potential

Emerging markets are growing at least three times faster than the demographically challenged developed economies.  Powerful supporting dynamics includes younger, upwardly mobile populations, urbanisation with the shift from agrarian to service jobs, greater female workforce participation and a broadly improved education system.

Developing and emerging markets account for:

• 88 per cent of the world’s population;
• 62 per cent of the global GDP at purchasing price parity; and
• A younger and faster growing population – in Latin America, South Asia, the Middle East and Sub-Saharan Africa, more than 20 per cent of the population is between the ages of 15 and 24.

I have listed some interesting facts from a sample of 25 countries below:

Source: World Bank, Euromonitor, BMI Research and Deutsche Bank

Major brand companies like Colgate, Coke, Kimberly-Clark, PepsiCo and P&G are actively trying to position themselves to take advantage of any tailwinds and are constantly making comparisons with the more mature developed countries/ regions including Japan, Western Europe, North America and Australia.

Collectively these account for 56.4 per cent of world GDP, 11.4 per cent of the world population, population growth of 0.4 per cent per annum, average per capital GDP of US$43,332 and have 34.9 per cent of their population under 30 years of age.

To learn more about our funds, please click here, or contact me, David Buckland, on 02 8046 5000 or at dbuckland@montinvest.com.

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Chief Executive Officer of Montgomery Investment Management, David Buckland has over 30 years of industry experience. David is a deeply knowledgeable and highly experienced financial services executive. Prior to joining Montgomery in 2012, David was CEO and Executive Director of Hunter Hall for 11 years, as well as a Director at JP Morgan in Sydney and London for eight years.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.