Growth prospects for emerging markets appear brighter than they have for years, according to the latest Emerging Market Logistics Index by Agility.
In Agility's annual survey, which gathers information from more than 500 supply chain industry professionals, nearly two-thirds agree with the International Monetary Fund's (IMF) 2018 emerging markets forecast of 4.8 - 4.9 percent GDP growth. This figure represents the fastest expansion for emerging markets since 2013 and a second consecutive year of higher growth for developing economies.
China (1) and India (2) top the 2018 ranking, putting more distance between themselves and third placed UAE in the Index. Russia climbed three spots to seventh - indicating that its economy is stabilising after years of low energy prices, capital flight and economic sanctions. Brazil continues its struggle to emerge from political turmoil and its worst recession in a century, slipping two places to ninth. Egypt surged six spots up the index to 14th - the largest jump by any country.
Logistics executives are unconcerned, for now, that emerging markets would be harmed by Brexit; 45 percent said markets would be unaffected, with 25.4 percent believing that they could benefit through expanded market access.
55 percent of executives surveyed stated that small and medium-sized (SMEs) businesses would benefit most from emerging markets growth, with 26 percent stating that large companies would be the biggest beneficiaries.
"It's refreshing that the industry sees small and medium-sized businesses as the ones getting the most out of emerging markets growth," said Essa Al-Saleh, ceo of Agility Global Integrated Logistics. "In large part, that's because SMEs are finally getting access to new technology and tools to improve their competitiveness and find new markets - a belated but very welcome development."
The 2018 Agility Emerging Markets Logistics Index can be viewed in full here.