SA’s global brand value jumped by 5% the past year
- South Africa's global brand value increased by 5% the past year, a new report showed.
- The increase was attributed to the marginal growth in GDP in the second qaurter of 2019.
- Overall, the average growth of brand value for developing economies was 13.9%.
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South Africa's global brand value increased by 5% to $218 billion despite political and economic instability, a new report by Brand Finance showed.
Brand Finance, the world’s leading independent brand valuation consultancy, said the marginal uplift in the country’s GDP in the second quarter of 2019 was largely responsible for the growth in brand value.
The country’s Brand Strength Index (BSI) score also improved, and is now at 64.9 out of 100 with a corresponding AA- brand strength rating, inching South Africa up one place in the Brand Finance Nation Brands 2019 ranking.
“We are currently facing turbulent times in South Africa with high levels of political uncertainty, against a backdrop of a flat economy, and business confidence as low as it was in the mid-1980s," Jeremy Sampson, Brand Finance managing director, said.
“There is a desperate need to kick start the economy and piece together our fractured ruling party if we want to see more than a modest growth in our nation’s brand value in the future."
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The report showed that developing economies have seen 30 times faster nation brand value growth over the past year than developed ones.
The average year-on-year nation brand value growth among developing economies stands at 13.9%, compared to as little as 0.4% for the developed economies.
This means that – on average – the nation brands of developing economies have been growing at a pace 31.3 times faster than the developed ones.
Nation brand values of most developed economies have contracted or stagnated year on year, Brand Finance said. Japan is a notable exception with 26% growth.
Consistently with previous years’ trends, 11 out of the 20 fastest-growing nation brands of 2019 come from the Middle East and Africa, with Ghana (up 67%), Uganda (up 56%), and Egypt (up 50%) in the top 5.
“With the Western world seeing a real crisis of leadership on both sides of the Atlantic, the developing world is catching up," Brand Finance's CEO David Haigh said.
"Bolder, more agile, increasingly innovative African, Middle Eastern, Asian, and Latin American nation brands are racing ahead at breakneck speed, poised for further growth in the years to come,
The United States, at $27.8 trillion, topped the ranking again this year.
China came in second, recording an impressive 40% increase in brand value to $19.5 trillion. The difference in value between the two nation brands has dropped from $12 trillion last year to just over $8 trillion in 2019.
The two largest economies in the world have been at loggerheads since July last year in a bitter trade war.
Japan has pushed the UK out of fourth position, amidst uncertainty around Brexit.
(Compiled by Estrelita Moses.)
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