The N-11: more than an acronym

Late in 2005, Goldman Sachs introduced the concept of the Next Eleven (N-11). The purpose was to identify those countries that could potentially have a BRIC-like impact in rivalling the G7. Their main common ground - and the reason for their selection - was that they were the next set of large-population countries beyond the BRICs. The result was a very diverse grouping that includes Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam - some economies that are well-known to many investors (such as Korea and Mexico) but also many that are not (such as Nigeria, Vietnam, Pakistan and Bangladesh).

This chapter looked at the countries identified and highlighted the following points:

• since the notion of the N-11 in late 2005, there has been increased focus on these countries (Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam)
• recent economic performance has improved and equity markets have been strong
• while the N-11 may not have the scale to have a ‘BRIC-like’ impact, they could rival the G7
• as a source of new demand and sustained growth, they could surpass major markets
• several of the N-11 could perhaps join the largest economies in the world
• growth conditions vary widely across the N-11, and several face large challenges
• growth stories could be much more compelling in places if conditions improved
• as a group of potentially large, fast-growing markets, the N-11 could be an important source of growth and opportunity