Last Updated on: 7th February 2021, 07:36 am
Emerging markets, or EM, also known as emerging economies or developing countries, are nations that are investing in more productive capacity.
They are moving away from their traditional economies that have relied on agriculture and the export of raw materials. The economy of a developing country becomes more engaged with global markets as it grows.
An emerging market economy is transitioning from a low income, less developed, often pre-industrial economy towards a modern, industrial economy with a higher standard of living.
Emerging market economies can offer greater returns to investors due to rapid growth but also offer greater exposure to some inherent risks due to their status.
The economies of China and India are considered to be the largest emerging markets.
The 10 Big Emerging Markets (BEM) economies are (alphabetically ordered): Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea, and Turkey.
Egypt, Iran, Nigeria, Pakistan, Russia, Saudi Arabia, Taiwan, and Thailand are other major emerging economies.
Vincent Nyagaka is a Professional Trader, Analyst & Author. He has been actively engaged in market analysis for the past 7 years. He has a monthly readership of 100,000+ traders and has taught over 1,000 students since 2014. Vincent is also an experienced instructor and public speaker. Check out Vincent’s Professional Trading Course here.