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 Articles
  1. Economics

    How Demographics Drive The Economy

    Demographics can have a profound effect on the economy. An aging population coupled with a declining birthrate points to a decline in economic growth.
  2. Economics

    The Economic and Social Effects of Corruption

    Corruption results in inefficiencies in the operations of emerging economies, and prevents such economies from reaching the maximum level of development.
  3. Economics

    What's a Command Economy?

    A command economy is one where the government controls the economy, acting as the central planner, dictating production quotas and distribution levels, and setting prices. Such economies exist ...
  4. Economics

    Understanding the Multiplier Effect

    The multiplier effect is an economic term referring to how an increase in one economic activity can cause an increase throughout many other related economic activities.
  5. Economics

    The Economic Fundamentals Of The Sharing Economy

    The sharing economy is reshaping how businesses and consumers interact with each other by lowering costs and increasing operational efficiency.
  6. Investing

    What Is Hollywood Spending On Oscar Campaigns?

    Here's a look at how much Hollywood is spending this awards season to take home the gold at the 2015 Academy Awards.
  7. Economics

    Sanctions & Falling Oil Prices Hit Ruble Hard

    Russia, through its aggressive actions, has brought upon itself sanctions which, coupled with falling oil prices, have adversely impacted its economy.
  8. Economics

    Is the consumer price index (CPI) the best measure of inflation?

    Discover how the CPI is one of the most used indexes to measure inflation, but due to its limitations, the PPI and GDP deflator are also required.
  9. Fundamental Analysis

    What does the term 'invisible hand' refer to in the economy?

    Discover and understand the concept of the "invisible hand" as explained by Adam Smith, considered the founder of modern economic theory.
  10. Economics

    What is the difference between the consumer price index (CPI) and the producer price index (PPI)

    Learn how the PPI and CPI differ in the composition of their target sets of goods and services and the types of prices collected for them.

You May Also Like

COMPANIES IN THIS ARTICLE
Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center