WILL GDP/CAPITA FURTHER ACCELERATE IN THE FRONTIER MARKETS?
Population dynamics is what lies at the core of any economy (well, most of the time anyway). This is nothing new.
Over the past 10 years, global GDP/Capita has grown by more than 40%. A major driver for this trend was the rise of a middle class in emerging markets.
The key question is: with an even higher population growth, will the frontier markets see an even stronger GDP/Capita growth during the next decade?
So the main idea is that if emerging markets recorded more than 60% growth in GDP/Capita with ‘only’ 10% population growth, what can the potential be for Africa and the Frontier Markets with twice the demographics?
What is for sure is that the potential for higher GDP/Capita growth isn’t reflected in today’s Frontier Market valuations…