Every year globalEDGE publishes its Market Potential Index (MPI) in order to assess a market’s attractiveness for international business. The Market Potential Index provides a detailed ranking of 26 emerging countries. With the MPI, determining which international market to enter is no longer an overwhelming task. Emerging markets are ranked based on several dimensions, allowing appropriate marketing strategies to be developed for each particular country. This year the MPI highlights several significant trends among emerging markets. We will now take a closer look at some of these trends in order to obtain a better idea of the importance of emerging markets in international business.
Among all emerging markets, Turkey has been of the most consistent countries in the past decade, steadily improving its business climate every year. Based on the MPI rankings, Turkey was ranked 20th in 2001, 15th in 2005, 10th last year and this year Turkey has claimed the 8th position. Political reforms have enabled Turkey to become a key market for international business. Turkey is also a market attributed with a growing middle class, and thereby a growing consumer base. Perhaps the most overlooked aspect of Turkey is its important geographic location that allows Turkey to serve as a natural bridge from Europe to Asia. With Turkey’s GDP expanding at a 3% annual rate over the last 5 years, Turkey has essentially avoided the global financial crisis of 2008 that continues to plague European countries. Turkey will continue to be a leader in the emerging markets in the years to come and will especially increase in importance if negotiations on joining the European Union prove to be successful.
On the other side of the world, Peru continues to be South America’s fastest growing economy. Ranked as the 25th emerging market in 2007, Peru is currently ranked 14th according to this year’s Market Potential Index. Peru’s overall economy is growing at 6.2% and is seeing strong signs from its housing market, as the construction industry expanded by 18.4% this year. Currently, Peru’s government is promoting macroeconomic stability, confidence-building, tax predictability, and legal stability to generate even more business opportunities.
Peru and Turkey are just two of the many emerging markets that hold a particular importance for international businesses in 2013. As countries grow, business opportunities will undoubtedly follow in these emerging markets. To better gauge the business environment of each emerging market, be sure to check out the globalEDGE Market Potential Index.