Emerging markets are economies that are moving towards becoming what are known as ‘developed markets’. This usually takes place as they become more industrialized and embrace free market economics. An example of advanced markets would be the U.S.
Conversely, examples of emerging markets would be countries across the Asia-Pacific region and Latin America, such as Indonesia, Chile and Vietnam. Emerging markets usually have lower levels of liquidity, less well established markets and lower levels of per-capita income.
Why are they important?
These are the economies that will grow larger in the future and thus will have more and more of an impact on global trade and economics. For example, China was known as an emerging market many years ago before it started using a capitalist-style economy. Now it’s the third biggest economy in the world after the U.S. and E.U. (by measure of GDP). It’s also the biggest exporter in the world. The label of an ’emerging’ market applies less and less by the day as it’s influence grows.
Emerging markets will help the global economy to grow.
Invstr. (2017, October 27). What are emerging markets and why are they important? Retrieved from https://invstr.com/emerging-markets-important/.