The coming decade will be dominated by dynamic markets like Turkey, Indonesia, Vietnam and possibly some African countries, according to Dr Lyal White, director of the Centre for Dynamic Markets (CDM) at South Africa’s Gordon Institute of Business (GIBS).
Speaking at a recent forum organised by GIBS, White explained that dynamic markets are the “relatively loose collection” of emerging and developing countries that are not mature markets.
He sees 2011 as the start of the dynamic market decade. “Dynamic markets are growing at an impressive rate and showing areas of growth that are new and very exciting. We are going to see mature markets grow in 2011 by maybe 1.7% at best, and dynamic markets will grow at an average of about 6.5%.”
“In short . . . growth has really shifted from the north and the west, to the south and the east,” he added.
White said that while the previous decade was dominated by the BRIC countries (Brazil, Russia, India and China), the coming ten years will see the “next tier of dynamic markets” attracting the most attention.
He, however, sees the African continent as a whole, rather than individual countries, making an impact over the next decade.
“I see the collection of patchwork economies in Africa as a whole forming part of the dynamic market fold. They already contribute enormously to the economic growth in the emerging economic powers of China, India and Brazil in the form of economic resources and very lucrative investment destinations,” White explained.
He is also enthusiastic about the African consumer. “Africa’s real potential lies in its market, a billion people, half of which are under the age of 35. And that could come to the fore in 2011 and really [project] Africa into the next decade.”