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Vietnam- the best destination for investors
After BRICs, the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) will become an economic bloc with sustainable high growth and a best destination for investors, said the Economist Intelligence Unit.
The BRICs concept, which was invented by Goldman Sachs in 2001, now includes strong economies such as Brazil, Russia, India and China. The BRICs’ GDP has been forecast to surpass G7 by 2020.
Recently, economists have mentioned the newly-emerging economies known as CIVETS which can deliver sustained high growth in the long-term.
“They all have crowded, young populations with relatively developed financial systems,” they said.
Currently, none of the CIVETS are suffering runaway inflation except Egypt. High public debt (80 percent of GDP) contributed to making Egypt it the weakest link in the group.
Apart from robust economic growth rate, the CIVETS have proved resilient during the recent global economic crisis, attesting to well-directed policymaking in recent years.
CIVETS are forecast to reach an annual GDP growth of around 4.5 percent in the next 20 years, slightly lower than BRIC’s 4.9 percent.
The EIU also predicts that the six economies under CIVETS are likely to look the best after BRICs.
The total GDP of CIVETS, even at purchasing-power parity, will remain only one-fifth of the G7’s. However, the group will play an important role in the global growth, said the EIU. The emerging economies will help strengthen their respective regions, accelerating the shift of the global economy.
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