Asia’s Developing Economies: The World?s Hottest Markets For ’97 Business Expansion

Dreaming of areas where consumer buying power is on the rise? Where markets aren?t saturated? Where people are eager to buy your company?s products and services? Then turn your eyes to the developing economies of Asia: China, India, the Philippines and others. Those countries, plus South American stars like Brazil, Argentina and Chile are where the some of the world?s greatest business opportunities will be found in 1997 and the years ahead.

?East Asia, as the world?s fastest-growing region, is altering the global economic balance with dazzling speed,? says World Bank Vice President for East Asia and the Pacific Russell Cheetham. ?It?s being forecast that the GDP (e.g., gross domestic product) of Asian developing countries in general will rise by almost 50 percent between 1992 and 1997.?

According to the World Bank, foreign direct investment in China and other East Asian nations grew the fastest of any global region last year and accounted for about US$54 billion of the world total of $90 billion. China alone attracted some $38 billion in new plants and equipment.

Six of the world?s 10 fastest-growing economies are found in Asia. ?In addition, the development of a middle class is well under way, and a large stable consumer base is now being created,? says Stephane Garelli, professor at the Lausanne, Switzerland-based International Institute for Management Development and director of its World Competitiveness Project.

Near-term growth in South America isn?t expected to be as whippet-fast as in Asia, but it?s still impressive. Significant opportunities await, illustrated by the $18 billion in foreign direct investment that poured into Central and South America and the Caribbean in 1995.

Business prognosticators say North America?s ?97 economic expansion won?t be as robust as Asia?s, or even as strong as in South America?s boom nations. But the forecast calls for steady growth in Canada and the United States and continuing economic recovery in Mexico.

Most of Europe won?t experience the dizzying economic growth that?s in store for much of Asia in 1997. In fact, the outlook for Europe overall is for a continued slow recovery from a lingering sluggish economy.