Emerging Markets Economic Data | Data| World Economics (2024)

FAQs

How much of the world economy is emerging markets? ›

This group accounted for 50.1% of Global GDP in 2023, and 66% of global GDP growth in the past 10 years (2013-2023). The Emerging Markets are home to over 4.3 billion people with an average life expectancy of 75 years and a current median age of 34 years old.

Today, the 27 countries in the MSCI Emerging Markets Index account for 39% of global GDP (see Display 2). Source: MSIM, Bloomberg, FactSet, Haver, Global Financial Data. Data as of December 31, 2020.

The global economy is increasingly influenced by the Group of Twenty's large emerging markets. Over the past two decades, these economies have become much more integrated with global markets and are generating larger economic “spillovers” to the rest of the world.

According to their analysis, depending on the criteria used, the term may not always be appropriate. The 10 Big Emerging Markets (BEM) economies are (alphabetically ordered): Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey.

The Five Major Emerging Markets. Brazil, Russia, India, China, and South Africa are the biggest emerging markets in the world.

This approach identifies the following countries in the emerging market group, in alphabetical order: Argentina, Brazil, Chile, China, Colombia, Egypt, Hungary, India, Indonesia, Iran, Malaysia, Mexico, the Philippines, Poland, Russia, Saudi Arabia, South Africa, Thailand, Turkey, and the United Arab Emirates.

Among the four major emerging market economies, India continued to be ranked first as the fastest growing nation even as the rate of output expansion - owing to the slowdown in services activity - eased in February.

Emerging markets are riskier than developed markets because they can experience political instability, illiquidity and currency volatility, and a high level of state-owned or state-run enterprise and are not suitable for all investors. As with all investing, your capital is at risk.

Since the early 1990s, developing countries have been the fastest-growing market in the world for most products and services. Companies can lower costs by setting up manufacturing facilities and service centers in those areas, where skilled labor and trained managers are relatively inexpensive.

Do emerging markets do well in recession? ›

If a US recession is on the way would only make more of a case for greater diversification in global portfolios – a positive for emerging markets. A recession would entail lower inflation and, as a result, lower US interest rates.

Emerging markets often offer unique investment opportunities that are not available in developed markets. These can include sectors or industries that are rapidly growing due to the country's specific stage of economic development.

The Next Eleven (or N-11) are eleven countries—Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam—that Goldman Sachs investment bank says will probably become some of the world's largest economies in the 21st century, together with the BRICS.

The Group of Five (G5) once described the country grouping that includes the emerging economies of Brazil, China, India, Mexico, and South Africa. Four of the countries are also considered BRICS nations.

Investors with positions in overseas stocks may look for opportunities to put money to work in China, the world's second-largest economy (behind the U.S.). China is still classified as an emerging market, but its equity values represent, by far, the largest among all emerging market countries.

In a well-functioning market, firms can thrive, and consumers can readily access the desired goods and services. Conversely, when markets fail to function well due to frictions or distortions, they may disincentivise production and/or consumption, leading to economic stagnation or decline.

When basic caution is exercised, the rewards of investing in an emerging market can outweigh the risks. Despite their volatility, the most growth and the highest-returning stocks are going to be found in the fastest-growing economies.

Markets are an important part of the economy. They allow a space where governments, businesses, and individuals can buy and sell their goods and services. But that's not all. They help determine the pricing of goods and services and inject much-needed liquidity into the economy.

International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.