Analyst Insight by Kasparas Adomaitis - Senior City Analyst
The passenger car is seen as a necessity rather than a luxury item in developed countries. In fact, in 2014, 80% of households in the developed world owned at least one car. Despite omnipresent passenger cars, there are areas where car dependency is surprisingly low in developed countries – namely, some of the most affluent and largest urban centres actually record notably more modest vehicle ownership rates. For example, only 67% of households own a vehicle in the New York metropolitan area, compared to an average of 89% in the US.
Table 1. 15 Major Cities by Largest Difference in Vehicle Ownership Rate, Developed Countries, % of Households with Passenger Car, 2014
|New York (US)
Source: Euromonitor International
Continue reading "Top Developed World Cities with Low Reliance on Car-Based Mobility" »
Analyst Insight by Ugne Saltenyte - City Analyst
Over the next 15 years, the world’s urban population growth will be fed by the two principal regions – Middle East and Africa (MEA) and Asia Pacific – which together will account for 84% (or 986 million people) of the global urban population increase. While the process of urbanisation is good news for many consumer goods and services companies, as it is traditionally related to the spread of modern lifestyles in emerging countries, over the next 15 years living standards in most emerging metropolises will remain well below the current averages of the developed world.
Source: Euromonitor International
Continue reading "Deception of Expanding Urban Populations" »
Analyst Insight by Pavel Marceux - Technology, Communications and Media Specialist
The unique challenges, both technical and cultural, of emerging markets translate into specific digital trends that are becoming clear across some of the world’s largest economies. There is growing demand for FinTech products among large underbanked populations, digital healthcare is a more pressing concern for the emerging world, music streaming looks to be making gradual inroads, lightweight apps designed specifically for emerging markets are being rolled out, and the sharing economy is expanding its reach beyond the developed markets. How quickly these segments develop in specific regions largely depends on growth in Internet usage and smartphone uptake.
Internet Users in Emerging Markets: 2009-2030
Source: Euromonitor International from International Telecommunications Union/OECD/national statistics
Note: Figures for 2015-2030 are forecast
Continue reading "Emerging Markets Tech: 5 Digital Trends to Watch" »
Analyst Insight by Daniel Solomon - Economist
China’s stock market has plunged by more than 15% in the 2nd half of August, after the earlier 30% decline in June and July. The government responded on August 25th with another interest rate cut of 0.25 percentage points and a cut in the required reserves ratio of large banks of a further 0.5 percentage points. The situation is volatile and it is too early to tell if these measures will stabilise China’s stock market, or if the government will be pushed into more drastic measures such as restricting stock sales or even suspending trading. This note focuses on the potential spill-overs from the drop in the Chinese stock market.
Shanghai Composite Stock Market Index
Source: Yahoo Finance
Note: Closing price adjusted for dividends and stock splits. Last price is for August 25th.
Continue reading "Spill-over Effects from China's Stock Market" »
Analyst Insight by Carrie Lennard - Business Environment Manager
The Transatlantic Trade and Investment Partnership (TTIP) is a trade deal currently under negotiation between the EU and the USA, which could create the world’s biggest free trade zone, boosting trade between the two. It would do so by removing trade barriers between them and harmonising regulations. Exports from the USA to the EU-28 countries declined from 21.0% of total US exports in 2009 to 17.1% by 2014.
- What existing free trade agreements do the EU and the USA have in place?
- Why do the USA and the EU want to form the Transatlantic Trade and Investment Partnership (TTIP)?
- What issues would the Transatlantic Trade and Investment Partnership (TTIP) need to address?
- What positive impact could the deal have on economies in the EU-28 and the USA?
- What are the likely drawbacks of the TTIP for the US and EU business environments?
Continue reading "Q&A: The Impact of the Transatlantic Trade and Investment Partnership Deal on USA and EU Business Environments" »
Latin American GDP is expected to slump to 0.7% in 2015, following on from a dismal 2014. Some of the region’s largest economies are struggling the most – with Brazil, Argentina and Venezuela mired in slowdowns and recession. Overall, 23 of the 40 Latin American countries for which we have data, will see a decline in growth in 2015 over 2014. Yet beneath these topline figures business opportunities remain – with those with a thorough understanding of the region’s economies and nuances of their business environments at an advantage.
Real GDP Growth in Selected Latin American Economies: 2009-2015
Source: Euromonitor International from national statistics/OECD/UN/IMF
Note: Data for 2015 are forecast
Continue reading "Seeking Opportunity in Latin America" »