Increase in trade and demand for commodities boost rapid-growth markets

An increase in intra-RGM trade, easing of monetary and fiscal policy, and higher demand for commodities will lead to an improvement in the economic outlook for the rapid-growth markets (RGMs) in 2013, according to Ernst & Young’s latest quarterly Rapid-Growth Markets Forecast (RGMF) .

Despite the forecast of 25 leading rapid-growth countries showing a slight dip last year due to slow global growth, RGMs have now started to regain momentum. The forecast expects growth in the 25 markets to collectively accelerate from 4.7% in 2012 to 5.4% in 2013 and then 6.4% in 2014. This is in comparison to the lackluster performance of the developed markets – particularly the Eurozone, which is expected to shrink by 0.3% this year.

However, fortunes will vary between geographies, with RGMs in emerging Asia and Latin America expecting growth to pick up from 7.0% in 2013 to 7.8% in 2014 and 3.8% in 2013 and 4.8% in 2014, respectively. The economic outlook for emerging Europe will remain subdued due to continued weakness in the Eurozone while lower oil prices will continue to hold back growth in the Middle East.

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