Manufacturing outlook in BRICS and MINT countries.
The 2008 financial crisis underlined the extent to which BRICS (Brazil, Russia, India, China, South Africa) and MINT (Mexico, Indonesia, Nigeria, Turkey) economies have transitioned from low cost offshoring locations to important producers and consumers of manufactured goods in their own right. As wages rise, governments need to implement reforms to retain competitiveness and capture more value-adding activities to avoid the middle-income trap of being locked into an initial development stage. Despite a convergence in industrial policy priorities around skills, infrastructure and research and development (R&D) spending, disparities remain between BRICS and MINT countries in their ability to attract foreign investment.
Increases in wage and other overheads in China will create opportunities for economies with lower wages and higher relative productivity.
High value-adding manufacturing activities are increasingly associated with specialised regional or city hubs of expertise and supply.
A strong dollar will boost exports to the United States, strengthening manufacturing growth in Mexico, China and India.
