The Industry Specific Market Potential Index (MPI) aims to compare 89 countries, which globally have the highest Gross Domestic Product (GDP), with each other on several dimensions in order to rank them according to their market potential for different industries. The focus of the study is to identify new markets to export goods rather than identifying new countries to invest in.
The Index compares these countries on six dimensions; size, growth rate, capacity, openness of the market, existing logistics infrastructure and risk (political, economic and business) of the country. To measure each dimension a different set of indicators are identified for every industry. Secondary data is used for these indicators which have been gathered from different reputable sources, as noted. Ranking scores are calculated by adding up the dimensions, weighted by relative importance.
While the MPI is a very useful tool for companies in the industry who are in the process of researching new markets for export, it shouldn’t be used as the single source of decision. MPI is designed to support other detailed market research and for verification purposes. It can be utilized as the first step of a market research which will help identify the focus countries that a more detailed market research should be conducted on.
Since MPI is calculated with the most recent data available, it is also important to remember that it represents the current states of the countries and it is not aimed to forecast the future states of the countries.
Industry specific MPIs will be updated annually.