10 Countries Where Consumer Spending Could Explode

Image: flickr

Savings as a percent of 2001 GDP: 25.4%

Over the last decade Iran, has used its oil revenues to pay for social spending programs. Such spending is actually now damaging the country's budget.

Iran's savings rate might decline if the country's government moved in line with international demands. Markets may then open up for goods to enter Iran.

Source: UN Economic and Social Survey of Asia and the Pacific

Savings as a percent of 2001 GDP: 47.4%

Healthcare spending accounted for 4.3% of Malaysia's GDP in 2009 and its health ministry has said that public and private spending on healthcare needs to rise to 7% of GDP by 2020. The government plans to launch a new national health insurance scheme.

An increase in government spending on healthcare may free up consumers to spend more on retail items.

Source: UN Economic and Social Survey of Asia and the Pacific

Image: d_proffer via flickr

Savings as a percent of 2001 GDP: 12.3%

The IMF recently reported that Turkmenistan should make its social spending apparatus more efficient to speed up economic development. If Turkmenistan was to engage in such a program, its consumers may have more of their own money to spend.

Source: UN Economic and Social Survey of Asia and the Pacific

Image: AP Images

Savings as a percent of 2001 GDP: 28.9%

Bhutan's public health expenditure rose to about 11.5% of GDP in 2007, after several years of weakness. Bhutan is trying to move towards becoming a social welfare society. Such a move, so long as consumers are not taxed to heavily, may free up more capital for retail spending.

Source: UN Economic and Social Survey of Asia and the Pacific

Image: Foster + Partners

Savings as a percent of 2001 GDP: 16%

Kazakhstan's President Nursultan Nazarbayev has ordered an increase in social spending. The portion of the budget earmarked for social spending has been increased eight times since 2001. If the consumer spending rate is to fall, and retail spending rise, consumers must be made more confident that the government's social spending programs will protect them.

Source: UN Economic and Social Survey of Asia and the Pacific