The economic success of nations can rise or fall, depending on a number of different elements. Among these factors are political stability, effective economic policies, competitive exports, ability to tap natural resources, etc.
Sometimes, regions experience a sudden boom in their ability to generate economic success. These markets on the rise can attract a lot of economic interest and international business activity. And as such, it’s a good idea to be informed about which markets are growing.
Here are five markets that are hot and are currently on the rise…
India currently has one of the fastest growing gross domestic products in the world. Its growth rate is projected to reach 5.5% by the end of 2015
Part of the reason why this market is growing at such a fast pace is because it has a large population, and subsequently a large work force.
In 2012, India had a workforce of over 470 million people. This workforce also has extremely competitive wages, which are attractive to foreign companies looking to outsource.
Another reason why India is on the rise is because its government, under Prime Minister Narendra Modi, is creating new legislation specifically designed to increase business growth.
For example, it has altered its environmental and labor regulations and created investing incentives, all for the purpose of promoting growth.
Furthermore, India has many profitable exports such as gems, precious metals, oil, textiles, and clothing. In short, India’s economy is growing because its government and workforce are both working to promote growth in the market.
Indonesia is another country that is on the rise. The GDP of Indonesia is projected to increase by just over 5% by the end of 2015, close behind India as one of the fastest growing economies in the world.
Also similar to India, Indonesia has new government leadership that is attempting to promote growth in the region.
President Joko Widodo is trying to affect change by reducing fuel subsidies, redirecting the money into education and infrastructure. He is also considering lifting raw ore exporting bans.
Further, Indonesia has a rapidly expanding middle class and a GDP of around one trillion dollars. Both of these statistics are important when you consider that Indonesia is the fourth most populous nation in the world.
The country has over 250 million people, and if its economy keeps growing, it could cultivate an economy that is even stronger and more globally significant.
Indonesia exports oil, gas, textiles, electrical appliances, rubber, and a number of other products. These exports are in demand around the world, and help Indonesia remain a market on the rise.
Although many may not consider Poland to be one of the most exciting markets in Europe, its current economic growth is helping it keep pace with some of the fastest growing economies in the world. By 2016, Poland is predicted to have a GDP growth of over 3%.
Some of the key Polish exports helping fuel this growth include aircraft, oil, machinery, pumps, medical technical equipment, copper, plastics, ores and furniture. Poland exports these goods to many different countries, most notably China and the United States.
In addition to these exports, Poland is another country where the political environment is helping to fuel growth in the economy.
The Civic Platform party had been seeking to free up the business environment with more liberal policies, to increase investment by foreign companies, and to improve infrastructure.
After losing both the presidential election in May 2015 and the parliamentary elections in November 2015 to the rival Law and Justice party, however, it remains to be seen whether this trend will continue.
Kenya’s 2015 GDP growth is predicted to finish even higher than India’s, at 6%. This is due in part to the political stability that President Uhuru Kenyatta has brought to the country. He and the rest of the Kenyan government have increased national security, and are planning to move forward with plans to enhance to country’s infrastructure.
Some of Kenya’s top exports are tea, coffee, apparel, iron, steel, and horticulture, including flowers. By producing these products in great quantities and with high quality, Kenya is able to be very competitive in these markets.
Kenya also has some of the best farmland in the entire African continent.
A whopping 75% of all the jobs in the country are in the agriculture industry. Tea alone contributes to 20% of the nation’s GDP.
Furthermore, Kenya is working in cooperation with some of its neighboring nations, including Rwanda, Uganda and Tanzania, to promote business and trade in the area. Businesses in Kenya continue to work on technological innovation as well, including payment systems for mobile phones, which will support the country’s rising consumer base.
The Chinese market has been growing for a number of years. With a projected GDP growth rate of 7% by the end of 2015, China is the fastest growing economy in the world. There are a number of reasons why it is growing so fast.
First, as many as thirteen million Chinese people are moving from rural areas to the cities every year in order to seek higher paying jobs. This results in a work force that is making more money and generating more exports. Both of these things increase GDP.
Second, the private sector is increasing in China.
In 1978, private business accounted for only 1.2% of the total Chinese GDP. However, in 2012, it was over 60%.
Third, after the global crash of 2008, the Chinese government created an economic stimulus package of over $US 580 billion and also altered regulations to help increase bank lending. These two things helped the economy recover from the financial crisis.
China also exported over $US 2.3 trillion worth of goods in 2014. Some of its top exports include electronic equipment, such as computers, as well as clothing, machines, furniture, plastics, cars, and medical equipment. The country continues to be a manufacturing powerhouse, attracting foreign business with its competitive labor wages.
All of these factors equate to China remaining a market on the rise. Its growth over the past few decades has been remarkable, and even if that growth slows slightly, it will still be one of the most rapidly growing economies in the world.
Do any of these markets seem like a fit for your market entry strategy? What other markets are on the rise that companies looking to export should consider?