The emerging markets have been steadily outpacing the developed world in economic growth, and consumer spending may soon begin to kick into high gear, bolstering developing economies and related exchange traded funds (ETFs).
According to a report conducted by The Nielsen Co., the Asia Pacific consumer confidence index surged ten points to 107 in the last quarter, a record high, and the Middle East/Africa region saw a seventeen point jump to 106, also a new high. Consumer confidence has a baseline of 100.
“The good news is that income is rising faster than inflation, particularly in rural areas, and living standards continue to improve,” states Karthik Rao, Managing Director, Nielsen China. Rao also adds that “strong growth in marketplace demand, even in discretionary categories” could come as a result.
So far, the rate of recovery and growth seem to have been making a difference for emerging market consumers, with 37% of polled Asia Pacific consumers stating they are still in recession, as compared to 82% of North Americans and 68% of Europeans. Dr. Venkatesh Bala, Chief Economist at The Cambridge Group, adds that seven of the top ten most optimistic countries are from the Asia Pacific, whereas Europe makes up nine of the top ten most pessimistic countries.
“The recession is over for 63 percent of Asia Pacific online consumers,” remarks Cheong-Tai Leung, President Nielsen Asia Pacific, Middle East & Africa, “and they are gearing up for a spending spree.”
For more information on emerging market countries, visit our emerging markets category.
Max Chen contributed to this article.