Market Studies

Benin, an underdeveloped country in Sub-Saharan Africa, is dependent on subsistence agriculture and cotton. Cotton accounts for 40% of Benin’s GDP followed by production of textiles, palm products, and cocoa beans. Economic growth remains sturdy due to an increase in public investment from 21% of GDP in 2016 to 29.6% in 2019. On the supply side, robust growth is seen due to the performance of the agricultural sector led by cotton.

Vietnam emerges as an attractive low cost country source offering an alternative to China in an increasing number of supply markets.

Brazil is the largest economy in South America. It is also the eighth largest in the world. Conditions for buoyant economic growth in Brazil have rarely, if ever, been better, making 2020 a “make-or-break” year for Latin America’s largest and long underachieving economy. Unprecedented monetary stimulus, huge strides on the government’s reform agenda to bring public finances under control and open up the economy, and a record low exchange rate is anticipated to help fuel the boom.

Ethiopia’s strategic location in the horn of Africa gives it good access to the markets in Middle East and Europe. The country’s economy is one of the fastest growing in the World and has recently been in the global spotlight for a host of reforms.

South Africa’s economic freedom score is 58.3, making its economy the 102nd freest in the 2019 Index. However, the country was able to retain its investment-grade credit rating because of significant policy improvements after President Cyril Ramaphosa took office in February 2018. The new government has restored macroeconomic stability but still faces rising public debt, inefficient state-owned enterprises, and spending pressures that have reduced the country’s global competitiveness.

Malaysian economy decelerated to a three-year low in the third quarter as the U.S.-China trade rift and the global tech slump continued to weigh on demand for Malaysian electronic products, causing exports of goods and services to fall in Q3. Uncertainty over the trade outlook for the U.S.-China rift will likely continue to hamper the external sectors. However, a rebound in fixed investment would counter the slowdown. Experts forecast the economy growing 4.3% in 2020

Myanmar’s macroeconomic performance improved in 2018 as recovery in the agriculture sector, rising oil and gas prices, and substantial growth in several manufacturing segments helped the country regain positive momentum. The country’s growth is projected to further accelerate to 6.7 percent in by 2020/21. Growth will be supported by building reform momentum, planned large infrastructure projects and investment in sectors undergoing liberalization. Growth continues to be broad-based, supported by the industrial and service sectors. Industrial activities revived, supported by strong performance in the garments sector and construction activities. Services remain the key driver of growth with momentum building in the wholesale and retail sector supported by reforms.

Indonesia is Southeast Asia’s largest economy, rich in all types of natural resources as well as cultural diversity. A young and dynamic democracy, it is urbanizing and modernizing rapidly. In contrast with most OECD countries and many emerging economies, around half of the population is under 30 years old, and the working-age population ratio is set to rise during the next decade. In recent years, there has been a strong support from the central government to curb Indonesia’s traditional reliance on (raw) commodity exports, while raising the role of the manufacturing industry within the economy. Infrastructure development is also a key goal of the government.

Pakistan’s GDP growth is expected to dip a bit in 2020 and this is attributed to slowing domestic consumption, higher taxes and tight monetary conditions. However, the ongoing reforms are projected to support growth.

Although Saudi Arabia has an Oil based economy with about 16% of the World’s proven petroleum reserves, bolstering the non-oil economy is crucial to the success of Crown Prince Mohammed Bin Salman’s blueprint to wean the kingdom from its reliance on income from crude exports. As a result, Gross domestic product grew 1.2 percent in the first three months of 2018 compared with a year ago. The non-oil economy grew 1.6 percent from 1.3 percent in the first quarter of 2018.

With the rise in costs and currency valuation in China, Bangladesh has become the major sourcing destination for Textiles and Garments. Please click on following link to get a better perspective on sourcing opportunities in Bangladesh.

China is the world’s second largest economy by nominal GDP and one of world’s export powerhouses offering un-rivaled cost saving potential as a global sourcing and manufacturing centre due to its abundant low cost skilled labour force, low cost raw materials, excellent infrastructure system and a large and sophisticated manufacturing base.

Egypt, with its strategic position, unlocks vast sourcing potential. Home to over 114 million residents, Egypt’s economy, with a GDP of $476.72 billion in 2022, ranks 32nd worldwide. Egypt serves as a gateway to diverse markets, including Europe, Africa, and Asia. Industries like electronics, agriculture, and services saw significant growth, attracting innovators and investors. Products such as minerals, plastics, oil, electronics, fruits, glass, and paper have shown remarkable export growth rates, with an increase of 6.6% in 2022. Egypt’s advancements in technology and infrastructure create a prime opportunity for market engagement, especially in sectors like oil and minerals.

The economy is truly globalising and the BRIC countries are increasing their share of world trade. To measure the trends in intra-trade between the BRIC countries, Dragon Sourcing initiated a survey with Brazilian companies to evaluate sourcing trends between Brazilian companies and Asian suppliers with a special focus on China.