After BRICs, look to CIVETS for growth - HSBC CEO

LONDON, April 27 Tue Apr 27, 2010 9:09pm IST

Related Topics

Stocks

   

LONDON, April 27 (Reuters) - After the dynamic growth of the BRIC countries in the last decade, a batch of six more countries -- the CIVETS -- will be the ones to watch in the next 10 years, HSBC's (HSBA.L) (0005.HK) chief executive predicted.

Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa will take over as the new BRICs, as Brazil, Russia, India and China were dubbed a decade ago.

"Each has a very bright future," HSBC CEO Michael Geoghegan said of the CIVETS, named after the cat-like animals found in some of the countries. "Each has large, young, growing population. Each has a diverse and dynamic economy. And each, in relative terms, is politically stable."

Geoghegan, whose bank is the biggest in Europe but is targeting emerging markets for growth, said the growing importance of countries also including Mexico, Indonesia and Turkey will continue the power shift away from traditional economic strongholds of Europe and the United States.

Emerging markets will grow three times faster than developed countries this year and are driving global recovery, he said.

"Within three years, for the first time, the economic firepower of emerging markets will overtake the developed world, measured by purchasing power parity. It's a defining moment."

The size of the emerging market middle class will swell to 1.2 billion people by 2030, from 250 million in 2000, he said.

That bodes well for financial services, as households tend to open bank accounts and ask for other products when income reaches about $10,000, Geoghegan said.

"Many Chinese households are about to hit this level. They number about 33 million now. But they will quadruple to 155 million by 2014. In India, the change will also be dramatic," he said. (Reporting by Steve Slater; Editing by David Holmes)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Vodafone Tax Dispute

Vodafone Tax Dispute

India advised against challenging Vodafone tax ruling - source  Full Article 

Banking Sector

Banking Sector

India's laggard state lenders face tough sell on capital raising plan  Full Article 

Trade Deal

Trade Deal

WTO postpones trade deal by a day after last-minute objection.  Full Article 

Falling Oil Prices

Falling Oil Prices

Saudis signal no push for oil cut as market to "stabilise itself"  Full Article 

Raising Stake

Raising Stake

Nippon Life to raise stake in Reliance Capital fund unit  Full Article 

Sterilisation Camps

Sterilisation Camps

Sterilisation targets remain in all but name, critics say  Full Article 

Share Buyback

Share Buyback

Samsung Electronics to buy back $2 billion in shares  Full Article 

Microsoft in China

Microsoft in China

Microsoft to pay China $140 million for 'tax evasion'   Full Article 

Flashback: 26/11

Flashback: 26/11

The three-day attack in November 2008 left 166 dead.  Slideshow 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage