Corporate Turnover - Western Companies vs. Emerging Companies
2015-08-03 18:04:00
What is the best way to get benefit of emerging market growth? Should it be done by investing in western global companies or directly in companies originated from emerging countries?

To answer the question we have run statistic on more than 5,000 companies from 18 leading developped (9) and emerging (9) markets over last 10 years.
The primary indicator we are looking at is the average real turnover growth (= average turnover growth - inflation) in order to make comparison relevant.
The result are presented in below table and graphs.

The very significant result is that the growth of companies is strongly linked with the GDP growth of their domestic market. As a result, companies orignated from emerging markets, are the one registrering the fastest growth level.
Chinese and Indian based groups lead the race with an average real turnover growth of 13.7% for Chinese groups and 12.3% for Indian groups.
Companies from Russia (7.9%), Morocco (7.5%), Philippines (7.4%), Taiwan (7.2%) and South Korea (7.1%) come after in the 7%-8% range.
On the other side companies from developped countries enjoyed a much lower real growth with the United-States at 3.1% real growth, Japan at 4%, France, United-Kingdom and Germany at about 2%.
Remarkably, Switzerland, a small European market home to a number of global companies, saw its major companies real turnover declining at a pace of -1.4% per year, compared to a global real GDP growth of 3.8% per annum.