Emerging markets power global economy

While emerging markets are growing as the new source of global economic growth, outpacing growth rates of traditional developed markets, a number of factors – near sourcing, modal shift and cost pressures including high fuel prices – pose challenges for air freight going forward according to a recent report. By Donald Urquhart.


Emerging markets power global economy


While emerging markets are growing as the new source of global economic growth, outpacing growth rates of traditional developed markets, a number of factors – near sourcing, modal shift and cost pressures including high fuel prices – pose challenges for air freight going forward according to a recent report. By Donald Urquhart.

 

Now in its fourth edition, The Agility Emerging Markets Logistics Index 2013 compiled by Transport Intelligence (Ti) and funded by global logistics provider, Agility, assessed 45 major markets and identified the attributes that make them attractive for trade and logistics professionals.

The index highlights the fact that the emerging markets slowed along with the rest of the global economy in 2012 as a direct result of the impact of the European crisis, years of continuing stagnation in Japan, and fiscal uncertainty in the United States. The combination of these events weakened trade and financial flows, resulting in slower growth than was expected for many emerging economies, but that their economic performance was still generally stronger than that of developed markets.

The 45 countries in the Index grew at an average of 4.4 per cent according to the International Monetary Fund. On the other hand, the developed economies of the US and European Union saw a 2.2 per cent growth rate and a 0.2 per cent contraction, respectively. “Consequently,” the Index’s authors note, “the developing world continues to remain at the forefront for investors.”