This week we are taking a break from office space topics to talk about the global economy. Over the past several years, global investment focused on the BRICs: Brazil, Russia, India and China. Those countries have experienced rapid growth but now are slowing down. Taking their place is CIVETS – Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa – whose rising middle class, young populations and rapid growth rates make the BRICs look dull in comparison.
www.businesswithoutborders.com and University of Pennsylvania’s Wharton School of Business have great articles about this new trend. Professor Jerry Haar, director of the Pino Global Entrepreneurship Center at Florida International University in Miami was quoted as saying, “The BRICs are yesterday’s news,”
The articles say that the CIVETS are poised for rapid upward growth. The six countries in the group are posting growth rates higher than 5% — with the exception of Egypt and South Africa – and are trending upwards. Although these countries aren’t as large as the BRICs, these newcomers have a young population (average age is 27), increasing disposable income and more opportunities for businesses seeking expansion in other global markets. These markets are also attractive to companies because of low labor and production costs. The drawbacks on some of these countries include political instability and a lack of infrastructure.
With the expansion of the Port of Miami and other infrastructure projects, Miami could be poised as the gateway to several of these markets. But with great reward comes great risk. Take a look at the balance of the articles for more information. www.businesswithoutborders.com has a road map for these companies. Click here for the link. If you want to read the Wharton article, click here.
