Addressing the Economist Intelligence Unit’s Emerging Markets, the UK Secretary or State, Lord Mandelson revealed the findings of a new report which examines global business attitudes to emerging markets in light of the global downturn.
“Businesses should be strategic about their exports and plan for the long-term. Many emerging markets are outperforming developed economies, and are expected to grow strongly for years to come,” Lord Mandelson said.
Commissioned by UK Trade & Investment, the ‘Survive and Prosper: emerging markets in the global recession’ report, gives fresh insights into the opportunities and longer-term strategic importance offered by emerging economies.
It is based on a survey of more than 540 high-level business executives from across 19 business sectors; over 40 per cent of those interviewed worked for companies headquartered in emerging markets.
Key findings include:
• 77 per cent of companies expect the prospects for the global economy to improve in 2010-11.
• Despite the economic downturn, emerging markets support global profitability.
• Emerging market economies, on the back of the continued high growth and market size of China and India, have outperformed those of developed countries in 2009.
• Sixty percent of companies surveyed expected to derive more than 20 per cent of their total revenues from emerging markets in five years’ time - almost double the current figure of 31 per cent.
• Political risk (including the risk of nationalisation and expropriation) was cited by 50 per cent of survey respondents as the greatest government-related obstacle to doing business in emerging markets.
Commenting on the research Lord Mandelson said:
“The global recession was a wake-up call for companies to diversify their export base and seek out new opportunities in the emerging world. We are encouraging UK business to look abroad and find new business in these exciting new markets.”
The report is part of a wider push by UK Trade & Investment to raise awareness about the potential trade and investment opportunities for British companies in high growth markets.
Media Contact:
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Notes to Editors:
• 45 per cent of respondents cited China as their favoured future investment destination, 43 per cent cited India and 35 per cent cited other Asian destinations. The Middle East and North Africa (MENA) was in 4th place (32 per cent), ahead of Central and Eastern Europe (30 per cent), Russia (28 per cent), Brazil (28 per cent) and other Latin America (25 per cent).
• Beyond the BRIC’s – the next wave of priority markets
Which of the following emerging market countries are you considering entering over the next five years? Compares 2008 and 2009 rankings. Half of the top 10 are in Asia.
2009 rank (2008) Country
1 (1) Vietnam
2 (3) United Arab Emirates
3 (2) Mexico
4 (8) South Africa
5 (13) Malaysia
6 (5) Indonesia
7 (6) Singapore
8 (12) Turkey
9 (23) Philippines
10 (10) Saudi Arabia
15 (4) Ukraine
15 (7) Poland
UK Trade & Investment (UKTI) is the government organisation that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s economy – acknowledged as Europe’s best place from which to succeed in global business. UKTI offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage.
The fiscal stimulus initiative is part of UKTI’s response to the global economic downturn. It aims to help UK companies take advantage of new opportunities stemming from overseas fiscal spending plans. The size and scale of initiatives means there are plenty of opportunities for UK business to provide expertise and capability. UKTI has a team of dedicated business specialists who can help British companies to identify and seize these new opportunities.
For more information visit: www.uktradeinvest.gov.uk | www.youtube.com/UKTIWeb | http://blog.ukti.gov.uk | www.flickr.com/ukti | http://twitter.com/ukti
Survive and prosper: emerging markets in the global recession is a UK Trade & Investment (UKTI) report written in collaboration with the Economist Intelligence Unit. The report seeks to examine opportunities within emerging markets in the context of the current economic climate. It follows a previous report by UKTI, Tomorrow’s Markets, also written in conjunction with the Economist Intelligence Unit, published in September 2008.
In July-August the Economist Intelligence Unit conducted a global survey of over 540 companies from across 19 business sectors. Over 40 per cent of the executives interviewed worked for companies headquartered in emerging markets; the remainder were from companies based in developed countries. Almost half (48 per cent) were small and medium-sized companies with annual global revenues of US$500 million or below; 18 per cent had global revenues of US$10 billion or above. Just under half (48 per cent) of the interviewed executives were C-suite or board members across a wide range of business functions.
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