Emerging markets slowdown fails to dim enthusiasm

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Global economic doldrums slowed emerging markets in 2012, but those countries remain bright spots for investors, manufacturers and logistics executives still wary of the uncertain outlook for the United States and Europe.

 

Emerging markets felt the effects of the continuing global slowdown in 2012 but generally weathered it better than developed countries that are their main markets. The 45 emerging markets featured in the 2013 Agility Emerging Markets Logistics Index grew at an average of 4.4%. In contrast, the U.S. economy grew at 2.2% while the EU contracted 0.2%.

Heading into 2013, enthusiasm for emerging markets is strong among trade and logistics professionals, even as they indicate they are re-thinking the importance of low-cost labor, facing tougher choices over how and where to source, and beginning to look beyond the so-called BRIC countries of China, Brazil, India and Russia.

Seventy-three percent of those surveyed feel prospects for emerging markets in 2013 are "good" or "very good." The figure is about the same percentage as a year ago – but the number who feel 'very good' is up sharply, to 22% from 14%. The global outlook is cloudier: 46% expect modest global growth while 47% say global GDP will be flat.

"Business confidence is at a premium in an uncertain global economy," said Essa Al-Saleh, President and CEO of Agility Global Integrated Logistics. "This year's Index – in terms of the hard data and industry sentiment – is encouraging when it comes to the promise of emerging markets. It shows that they remain resilient and will continue to offer some of the best opportunities for near-term and long-term business growth."

The Agility Emerging Markets Logistics Index, now in its fourth year, looks at the world's most dynamic economies and the forces powering them. It ranks 45 major emerging markets and identifies the attributes that make them attractive for investment by logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution property companies. Together, the Index rankings, analysis and survey of 375 industry professionals provide a basis to compare individual countries, weigh their strengths and weaknesses, and gauge their near-term prospects.

"This year's Index shows once again the importance of emerging markets to the development of the global logistics industry," said John Manners-Bell, Ti's Chief Executive. "Despite weakened demand for exports in Europe and the United States, confidence in the developing world is high, and investment continues apace. Not all markets display the same level of potential, though, and the Index clearly shows which countries are 'open for business,' and which must do much more if they are to realize the benefits that integration in the global trading community can bring."

About the Agility Emerging Markets Logistics Index

The Agility Emerging Markets Logistics Index, now in its fourth year, looks at the world's most dynamic economies and the forces powering them. It examines and ranks 45 major emerging markets and identifies the attributes that make a market an attractive investment for logistics companies, air cargo carriers, shipping lines, freight forwarders and distribution property companies. Together, the Index rankings, analysis and survey of 375 industry professionals provide a basis to compare individual countries, weigh their strengths and weaknesses, and gauge their near-term prospects. The Index also looks at the inter-relationships among emerging economies and at trade flows between the emerging and developed worlds. The Index is the result of a unique collaboration between Agility, one of the world's leading providers of integrated logistics and supply chain services, and Transport Intelligence, a leading global provider of expert research and analysis for the logistics industry.

Source : Matthew Campbell via xtmotion.com