Lion economies

AAA

DEFINITION of 'Lion economies'

A nickname given to Africa's growing economies, which had a collective GDP of $1.6 trillion in 2008, close to Russia's or Brazil's. Key sectors contributing to Africa's collective GDP growth include natural resources, retail, agriculture, finance, transportation and telecommunications. Improvements in political stability and economic reforms have aided growth. (For more, see: Why You Should Pay Attention To Africa Right Now.)

INVESTOPEDIA EXPLAINS 'Lion economies'

The International Monetary Fund estimates that sub-Saharan Africa’s economies will grow by 5.4% in 2014 and by 5.8% percent in 2015. Nigeria’s economy, Africa’s largest, could grow at about 7.1% a year through 2030, according to McKinsey & Co.

As big as Africa's collective GDP is and as fast as it's growing, Africa-only mutual funds or ETFs are rare. The sole continent-wide ETF, the GDP-weighted Market Vectors Africa ETF (AFK), invests in South Africa (22%), Nigeria (18%), Egypt (17%), Morocco (9%) and Kenya (2%).

See also: Tiger Economy; Tiger Cub Economies; Celtic Tiger; Four Asian Tigers; and other 'tiger' variants.

RELATED TERMS
  1. Anatolian Tigers

    A colloquial term that refers to a number of cities in central ...
  2. Nordic Tiger

    A colloquial term for the Scandinavian nation of Iceland. Prior ...
  3. Tatra Tiger

    A nickname or colloquial term for the central European nation ...
  4. Gulf Tiger

    A colloquial term for the glittering city and emirate of Dubai ...
  5. Baltic Tiger

    A colloquial term that refers to any one of the three Baltic ...
  6. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the ...
RELATED FAQS
  1. What is the difference between a simple random sample and a stratified random sample?

    Simple random samples and stratified random samples differ in how the sample is drawn from the overall population of data. ... Read Full Answer >>
  2. What economic indicators are important to monitor when investing in the electronics ...

    The most important economic indicators to monitor when investing in the electronics sector are global gross domestic product ... Read Full Answer >>
  3. What causes politicians or governments to begin "pork barrel" spending?

    Pork barrel spending occurs when the government taxes the general population to hand out concentrated benefits to special ... Read Full Answer >>
  4. How do markets account for systematic risk?

    Systematic risks provide markets with an unpleasant quandary. Economists, policy makers, directors, fund managers and investors ... Read Full Answer >>
  5. How does the law of diminishing returns affect marginal revenue?

    The law of diminishing returns is better thought of as the law of increasing opportunity costs. The law states that -- if ... Read Full Answer >>
  6. What are some of the risks of holding liquid assets?

    Liquid assets, such as cash or highly marketable securities, tend to offer lower returns than illiquid assets. This leaves ... Read Full Answer >>
Related Articles
  1. Economics

    Will The US Economy Rebound In The 2nd Quarter?

    Most investors know that U.S. 1st quarter growth numbers aren’t pretty. Economic statistics have been missing expectations by the largest margin since 2009
  2. Economics

    What Part of the Money Supply is M2?

    M2 is the part of the money supply economists use to analyze and predict inflation.
  3. Economics

    The U.S. Economy May Be Stronger Than You Think

    While the economic performance in the U.S. broadly disappointed in the first quarter, temporary factors presented one-off events that depressed output.
  4. Economics

    Understanding Marginal Benefit

    Marginal benefit is an economic term that describes the maximum amount a consumer is willing to pay for an additional unit of a good or service.
  5. Fundamental Analysis

    Understanding the Simple Random Sample

    A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen.
  6. Economics

    What is Systematic Sampling?

    Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample.
  7. Economics

    How The GDP Of The US Is Calculated

    The US GDP may not be a perfect economic measure, but the ability to compare it to prior periods and other countries makes it the most applicable.
  8. Mutual Funds & ETFs

    Is the PowerShares (PFEM) ETF a Good Bet Now?

    What you need to know if you are considering trading PowerShares Fundamental Emerging Markets Local Debt ETF.
  9. Chart Advisor

    Invest in Japan with this ETF

    The Japanese stock market has been front and center in the minds of many international traders over the past few weeks — and for good reason.
  10. Chart Advisor

    ChartAdvisor for April 24 2015

    A weekly technical summary of the major U.S. indexes.

You May Also Like

COMPANIES IN THIS ARTICLE
Hot Definitions
  1. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  2. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  3. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
  4. Brand Equity

    The value premium that a company realizes from a product with a recognizable name as compared to its generic equivalent. ...
  5. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
Trading Center