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A Data-driven Index to Highlighting Promising Business Destinations for 2018
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The past 2 decades have been characterized by a tectonic shift in the global economic and business environment, with emerging markets increasingly finding their way into the growth and expansion plans of businesses across the globe. Gross domestic product (GDP) rates of emerging markets have fast outpaced that of developed economies, with accelerated growth helping in poverty mitigation and middle class expansion, thereby creating a widened market for consumer goods and services. Most emerging markets are also characterized by the availability of a large, low-cost, and skilled labor force.Index Methodology:The indexing process deploys an eight-step research methodology, which starts with a choice of countries by a combination of 3 criteria based on nominal GDP, total population, and GDP per capita. The process also involves selection of the right set of indicators toward the 6 broad pillars, namely economy, demography, innovation ecosystem, human resources, business environment, and investment attractiveness. After the collection of data for all identified indicators, the index finally delivers the ranking of countries based on the data for those chosen indicators and their weightages carefully selected in the process of model building. Based on the country scores and ranks, the 3 country groupings—frontrunners, transformers, and fledglings—are identified. Eighteen countries have been identified as frontrunners as per Frost & Sullivan’s Top Emerging Markets List 2018.
Given the enabling business environment in emerging markets, Frost & Sullivan leverages an indexing methodology to annually track the competitiveness of global emerging markets. The 2018 index ranks 60 emerging markets across 30 parameters (across 6 major pillars). These 60 emerging markets have also been categorized into frontrunners, transforming markets, and fledgling markets, to help organizations identify the most promising business destinations. Frontrunner countries possess economic and demographic characteristics remarkably similar to those of the developed countries; these frontrunner countries are the ones that should ideally be assessed during business development and planning activities. Transforming countries, on the other hand, are developing robust business climate. They are at an early stage of economic development, with foreign direct investments (FDIs) pouring in, and have the scope for more investments in the long term. The fledgling markets, however, are still at the initial stages of governmental efforts in building a robust ecosystem, and would probably be out of an investor’s radar in 2018, owing to factors such as low economic prospects and political instability.
Regional coverage includes Africa, Americas, Asia-Pacific, Central Asia, Eastern Europe, and the Middle East.
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