3G countries or Global Growth Generators countries are 11 countries economies which have been identified as sources of growth potential and of profitable investment opportunities.

Background

February 2011: Citigroup analysts Willem Buiter (Chief Economist) and Ebrahim Rahbari said that BRICS (BRIC plus South Africa) countries have "outlived their usefulness", further adding that the categories emerging markets, advanced economies, developing countries, BRICS, Next Eleven or the Growth Markets are all labels belonging to classification schemes that are either obsolete or unlikely to ever had any validity. So, long run continues growths are important, although the eleven countries identified are poor today and have decades of catch-up growth to look forward to.^[1]

The grouping based on a weighted average of 6 growth drivers:

• Domestic saving/investment
• Demographic prospects
• Health
• Education
• Quality of institutions and policies
• Trade openness

3G Index Score

Note: China and India highligted in Gold with Bold text as also BRIC countries. Bigger index means better conditions. GDP per capita measured at 2010 PPP USD. Average growth is average growth in forecast of real GDP per capita measured at 2010 PPP USD.

3G countries

The most promising growth prospects countries are: Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, Philippines, Sri Lanka and Vietnam. China and India as BRIC countries are 3G countries, but not for Brazil, and Russia. Developing Asia and Africa will be fastest growing regions until 2050, driven by population and income growth, so all of 3G countries came from the both continents (Asia by 9 countries and Africa by 2 countries) and no one from the other continents.^[4] Vietnam has the highest Global Growth Generators Index among the 11 major economies, China is second with 0.81, followed by India's 0.71. This holds Vietnam as world's highest potential source of high growth and profitable investment opportunities.^[5]

October 2011: Based on a report from the HSBC Trade Confidence Index (TCI) and HSBC Trade Forecast there are 4 countries with significant trade volume growth, i.e. Egypt, India, Vietnam and Indonesia with growth expected at least 7.3 percent per year until 2025.^[6]

Others countries

Iran and North Korea could catch the 3G countries if they achieve political transitions and open their economies. Some might add Argentina, Burma, and Venezuela. Whether Mexico, Brazil, Turkey and Thailand will catch 3G countries depends on increasing their domestic saving/investment rates substantially. Some developed countries, such as Ireland, Canada, Australia and the USA could also become 3G countries, as stated in the report.

The Top 10 Largest Economies in the World

Note: 3G countries are hightlighted in green colour and bold text.

Comparison with BRIC

BRICS comprise of five countries; Brazil, Russia, India, China and South Africa. The acronym has come into widespread use as a symbol of the shift in global economic power away from the developed G7 economies towards the developing world. It was estimated that BRICS economies will overtake G7 economies by 2027. However this concept was coined in 2001 based on the available information at the time. A decade later in 2011, 3G is formed as a better alternative predicated on new data. Unlike BRICS, 3G consist of 11 countries instead of five. The top four countries in 3G are Vietnam, China, India and Indonesia; these countries are equivalent to the "Big Four" with China and India the only countries from BRICS to make it into 3G and Vietnam and Indonesia replacing Brazil and Russia.

References

External links