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Once Again Euromonitor Tips Nigeria As An Economic Giant To Watch Out For

by Milicent Atieno
Once Again Euromonitor Tips Nigeria As An Economic Giant To Watch Out For

Euromonitor International has authored a new study, ‘New Emerging Markets: Nigeria, Indonesia, Mexico, the Philippines, and Turkey’.

Once again, the Western Africa country Nigeria has been classified under the new emerging markets that should provide exciting opportunities for growth for consumer goods manufacturers.

Nigeria, Indonesia, Mexico, the Philippines and Turkey (NIMPTS) have been said to have growing economies, young population, rising incomes and an increasing population. Euromonitor International says these five countries offer a wealth of opportunities especially to marketers already facing stagnant demand in their markets.

This classification becomes the third of such classification where Nigeria has been featured as a country with tremendous economic growth potential.

The first classification was by Jim O’Neil from Goldman Sachs, who coined the term ‘The N-11 Group of Fast Growing Economies’ that was made up of Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, Turkey, South Korea, and Vietnam.

The second classification was by Fidelity Investment, an asset management firm based in Boston, USA. They used the term MINT to describe Mexico, Indonesia, Nigeria and Turkey.

Related: The Africa 2016 Wealth Report: Mauritius is the Richest Country in Africa, Zimbabwe Poorest.

Euromonitor International described NIMPTS characteristics saying, “They are far from homogeneous, each with its own advantages and drawbacks… (they) have entered a rapid growth phase and therefore provide exciting growth opportunities for manufacturers of a wide range of consumer goods and services.”

The report further says that NIMPTS have some things that are in common. At the same time, they do have some stark differences. Take, for instance, the size of their economies are entirely different; Mexico’s GDP is about four times that of the Philippines as of the year 2013. Nonetheless, all the five economies performed very well over the period of review by Euromonitor International.

Nigeria and Indonesia showed the strongest real GDP growth over the period between 2008 and 2013. They both averaged at 6%, followed closely by the Philippines at 5%.

Perhaps the most negative factor about the NIMPTS countries is that they all have a varying degree of political instability. All these countries have experienced some form of political instability either in the form of ethnic tensions, anti-government protests, national insurgencies and drug-related violence.

These markets offer promising long-term potential for investors though each has a number of hurdles to overcome to make them more attractive in the short term. These include poor infrastructure, high levels of corruption and huge informal sectors.”

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