Consumer Spending in Asia, GDP, and Emerging Markets
Consumer spending in Asia (on GDP and Emerging Markets).
Asia is the world’s largest and most populous continent. Interestingly the countries which fall under Asia vary in size, environment, historical ties and governance systems. Thus the wealth of these countries differs quite drastically.
For example in terms of Gross Domestic Product, GDP ("the market value of all the goods and services produced by labour and property located in a country” (About.com 2009)), Japan has the largest economy on the continent. In fact measured in terms of GDP Japan has the second largest economy in the world (Wikipedia 2009). Yet this is a far cry from other Asian countries such as Pakistan and Bangladesh, where the annual turnover of some large Multinationals exceeds the national GDP.
Unfortunately despite the fact that Asia accounts for roughly 60% of the worlds population (wikipedia 2009), it has been overshadowed (in economic terms) by the shear might and power of the western economies, namely America.
However in a bizarre twist of fate, sparked by the now infamous credit crunch, which has had a devastating effect on the once robust economies of the West, many are now asking the question, can Asians replace Americans as a driver of global growth? (Economist June 2009).
These Asian countries or economies are often referred to as the ‘Emerging Markets’. This definition is often widely used and loosely defined. The term ‘Emerging Markets’ was first coined by by Antoine W. Van Agtmael of the IFC (International Finance Corporation) of the World Bank in 1981 (Heakal 2009). It is used to describe fast growing economies, which have embarked on economic development and reform programs (Heakal 2009). Thus they are considered to be transitional economies, as they are moving from a closed economy to an open economy, whilst importantly building accountability within the system (Heakal 2009). China and India are examples of two prominent ‘Emerging Market’ Countries. Gone are the
Asia is the world’s largest and most populous continent. Interestingly the countries which fall under Asia vary in size, environment, historical ties and governance systems. Thus the wealth of these countries differs quite drastically.
For example in terms of Gross Domestic Product, GDP ("the market value of all the goods and services produced by labour and property located in a country” (About.com 2009)), Japan has the largest economy on the continent. In fact measured in terms of GDP Japan has the second largest economy in the world (Wikipedia 2009). Yet this is a far cry from other Asian countries such as Pakistan and Bangladesh, where the annual turnover of some large Multinationals exceeds the national GDP.
Unfortunately despite the fact that Asia accounts for roughly 60% of the worlds population (wikipedia 2009), it has been overshadowed (in economic terms) by the shear might and power of the western economies, namely America.
However in a bizarre twist of fate, sparked by the now infamous credit crunch, which has had a devastating effect on the once robust economies of the West, many are now asking the question, can Asians replace Americans as a driver of global growth? (Economist June 2009).
These Asian countries or economies are often referred to as the ‘Emerging Markets’. This definition is often widely used and loosely defined. The term ‘Emerging Markets’ was first coined by by Antoine W. Van Agtmael of the IFC (International Finance Corporation) of the World Bank in 1981 (Heakal 2009). It is used to describe fast growing economies, which have embarked on economic development and reform programs (Heakal 2009). Thus they are considered to be transitional economies, as they are moving from a closed economy to an open economy, whilst importantly building accountability within the system (Heakal 2009). China and India are examples of two prominent ‘Emerging Market’ Countries. Gone are the
References: Ashburton Ltd (2006). Chindia is the Future. Emerging Markets Monitor, Dec 2006, Vol. 12 Issue 35, p.1-8. Asia (2009).Retrieved on 15th August. From: http://en.wikipedia.org/wiki/Asia BBC News (2006), Corus accepts £4.3bn Tata offer [online] Retrieved on 10th March 2007 from: http://news.bbc.co.uk/2/hi/business/6068244.stm Fenwick, L. (2001). Emerging Markets: Defining Global Opportunities.Franchising World, May/Jun2001, Vol. 33 Issue 4, p54-55. Global credit crunch – towards a crisis of globalisation? (2007). Retrieved on 15th August. From: http://www.fifthinternational.org/content/global-credit-crunch-%E2%80%93-towards-crisis-globalisation Heakal (2009). What Is An Emerging Market Economy? Retrieved on 15th August. From: http://investopedia.com/printable.asp?a=/articles/03/073003.asp Patnaik, U. (2003). Global Capitalism, Deflation and Agrarian Crisis in Developing Countries. Journal of Agrarian Change, Vol.3 Nos. 1 and 2, January and April 2003, pp.33-66. Shopaholics wanted (2009). Retrieved on 15th August. From: http://economics.about.com/cs/economicsglossary/g/gdp.htm Weeks, J. (2001). The Expansion of Capital and Uneven Development on a World Scale. Capital & Class, Summer2001 Issue 74, p9-30.