Growth Markets are some of the world’s most dynamic and fast-growing economies.Â Some of these markets are already transforming the global economy; others offer the potential for significant growth in the coming decades.Â Here, we offer some insights into the power of the Growth Markets from three perspectives: business, macroeconomic, and economic empowerment.
EAGLEs is a grouping acronym created in late 2010 by BBVA Research to identify all emerging economies, whose expected contribution to world economic growth in the next ten years is expected to be larger than the average of the G6 economies (G7 excluding the U.S.). This is a dynamic concept where country members can change over time according to their forecasted performance relative to developed economies. The membership of the EAGLEs is subjected to a yearly revision and can change according to their forecasted economic performances relative to developed economies. The membership of the EAGLEs is subjected to a yearly revision and can change according to the forecasted economic performances.
As world economic growth rotates from developed to developing countries there has been increasing interest in identifying emerging markets that will become global leaders, as well as increasing the lobbying of some countries to be included in the BRIC definition. However, many economists have argued that the BRIC concept (Brazil, Russia, India and China) is outdated and have proposed alternative definitions. The EAGLEs concept is similar to other proposals in going beyond BRICs (such as the CIVETS, Next 11 or 7 percent club) but its methodology differs from othersâ€™ in several ways:
- It gives less relevance to economic size and population, which may be misleading.
- It focuses on the Incremental GDP (IGDP) economies will generate, instead of paying attention to the current or expected size of their GDP. This creates a situation where having big size or a high growth rate is not enough on its own to be a key global player. It is a combination of both that really matters.
- The cut-off is explicit. In order to become an EAGLE member, each countryâ€™s expected Incremental GDP in the next 10 years needs to be greater than the one anticipated for the average of the G6 economies, G7 excluding the U.S.
- It is not a closed group and the concept is not linked to an acronym formed by a given set of countries.
- The results are based on a shorter horizon â€“ 10 years â€“ than the ones considered in other cases, ranging from 20 to 50 years.