The Next Emerging Markets – CIVETS and N-11

Skye Leist
June 21, 2011

Now that the economic power of the BRIC countries (Brazil, Russia, India and China) is well established, analysts are looking to identify the next set of high growth countries. And, ofcourse, theyre also trying to come up with a catchy name for them.

HSBC, the large global bank formally known as Hong Kong and Shanghai Bank,has come up with CIVETS to describe a group of countries that will be the next economic powers. The CIVETS are: Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa.

Great quote from HSBC Strategist Phil Poole in Yahoo Finances article The Next Generation of Emerging Market Investingdescribes why they are recommending investing in the CIVETS:

“The underlying theme is demographics,” Poole says, as he points to the basket of nations that is home to 600 million people with an average age of 26. These people are hungry to “move up the consumption curve” be it in the form of better food, clothes, phones, a car or a house, Poole says.

The article has brief descriptions of why each country will likely prosper in the coming years. It also mentions my favorite stock exchange, the Ho Chi Minh Stock Exchange.

It is my favorite because (1) poor old Ho Chi Minh must be rolling over in his grave at the thought that a stock exchange is named for him; and, (2) it goes by the acronym “HOSE” – which is a wonderful name for a stock exchange.

Not to be outdone, the folks at Goldman Sachs (they coined the term BRIC) is pitching the N-11, which stands for the Next 11. These countries are: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam.

The growth of the developing world is one of the most important trends we follow, which is why its on our list of the 20 key trends in the Intuit 2020 Report.

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