MIST: the next big thing or just hot air?

MIST is an acronym that refers to the large and growing economies of Mexico, Indonesia, South Korea, and Turkey. The BRIC countries have captured a lot of attention since being coined back in 2001. The focus on BRIC made the authors of this report stop to consider what the “next big thing” would be. They note that there are several groupings being talked about including MIST, CIVETS, and N11. This report investigates MIST, one of the new groupings of growth economies that has been drawing attention as the next investment destination.

Why mist? MIST economies share the following similarities which attract investors’ attention:

• large economies, each contributing more than 1% of nominal global GDP
• rapid and comparatively stable economic growth
• large domestic markets powered by a growing population and purchasing power
• relatively well-controlled inflation
• members of G20
• the combined nations are expected to exhibit high growth over the next 20-30 years

The report concludes that it’s undetermined yet whether MIST will be “the new BRIC” or whether this grouping will see the same growth and success as BRIC has over the last decade.

Despite the similarities highlighted in this report, nothing concrete really ties these countries together. There are many significant differences between the nations and with so much volatility in the world, it is difficult to predict if they will maintain similar paths.
 

The authors argue that out of the four countries, they would highlight Indonesia. It is a powerhouse, witnessing an economic growth faster than any other major emerging market except for China. The economic growth combined with the rising middle class and the recent explosion of mobile and internet usage makes it poised for success.

However, it can’t be ignored that the combined MIST grouping does showgreat potential as the four nations’ long-term economic growth rates will surpass most current large economies and follow closely behind BRIC countries. It is an area to watch and businesses should be proactive in coming up with their market strategies now, planning for market entry and expansion in the long-term.