HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Emerging markets: an intriguing niche


Emerging markets are the countries that possess some characteristics of a fully developed market but do not have enough to be considered developed. In this group are countries that were once thought to be developed but changes to the market have the economy riskier or less stable, and of course, some of these markets will one day likely reach fully developed market status. ‘Frontier market’ is a related term that denotes a market that is smaller or riskier than an emerging one.

Countries with Developing Economies


The two largest emerging markets today are China and India, which find themselves in a group called BRIC, an acronym for the four largest developing economies, Brazil, Russia, India and China. As a duo, China and India serve as a base to some 40 percent of the world’s population and labour force, and together their output at over $32.5 trillion is much greater than that of the United States or the European Union.

Other large groups of developing markets that include the four BRIC countifies are BRICET, which is BRIC with the addition of Eastern Europe and Turkey, BRICM, which is BRIC plus Mexico, BRICS, with the addition of South Africa.

Other emerging economies lumped together are MINT, which is Mexico, Indonesia, Nigeria and Turkey; CIVETS, which groups together Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa; and Next Eleven, which is these emerging markets lumped together: Bangladesh, the Philippines, Egypt, Indonesia, Nigeria, South Korea, Pakistan, Turkey, Mexico, Iran, and Vietnam.

Perhaps a more encompassing look at these markets would be the 10 Big Emerging Markets, known as BEM. In alphabetical order they are: Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey. Of course, everyone brokerage has their own breakdown and list of emerging markets.

One well-known US investment firm includes all these as emerging markets in their Emerging Market Index: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Qatar, Peru, Philippines, Poland, Russia, South Africa, South Korea, Taiwan, Thailand, Turkey, and United Arab Emirates.

These compare to the established advanced economies of the United States, Japan and western Europe.

Defining Emerging Markets


Over the years, there have been various definitions of an emerging economy, with scholars studying them. In the 1970s, there was the idea that ‘less developed countries’ could provide more profit potential than developed economies, with greater risk, of course. But soon that term led to emerging market, though economies do not necessarily ever ‘emerge’.

So, perhaps the best way to look at these markets is as a market economy that is developing. No one knows for sure which parameters t use in classifying developing markets, just like no one knows how developed a particular economy will reach or when, but for now, it is progressing towards advancement. And emerging economies are important to the global economy, driving growth.

There seem to be several characteristics that developing economies share. Low per-capita income, rapid growth, volatility, and finally, a high ROI. When looking at economic growth, we can see in 2017, the most developed countries, such as the United Kingdom, the United States, Germany and Japan, was less than 3 percent. At the same time, growth in the economies of Egypt, Poland, and Morocco was greater than 4 percent. For emerging markets China, Turkey and India, their economies grew in the neighbourhood of 7 percent.

Investing in emerging economies is not right or wrong. Some investors find these characteristics attractive and choose to invest in emerging markets. Of course, other investors choose more established economies to invest in, preferring economies that are already developed, with less chance for volatility.

#source


RELATED

Should you be shorting Bitcoin in 2022?

Bitcoin skeptics and opponents have criticized crypto since its inception, and its association with dark web dealings didn’t help either. There’s also the issue of extreme volatility...

The Nine Biggest Risks Of Trading Cryptocurrencies

While the cryptocurrency space has become an increasingly exciting one, and more and more mainstream, it is still a new space that comes with certain risks...

Trading Like A CFO - Planning

We already went over the similarities between trading and financial management. Now we are going to get a little deeper into each...

US Stock Indices: The Past and the Present

There is a saying in the world of finance: "America will sneeze, but the whole world will catch a cold." But what is the way to determine how serious...

The Importance of Having a Forex Trading Plan

When approaching a field like forex trading where personal decisions translate into profits or losses, having a well-outlined and easy-to-follow plan can make the difference between success and failure...

Maximizing Financial Gains with USDC: An In-Depth Guide to Earning Interest

In an era where traditional banking yields are diminishing, the allure of earning interest through cryptocurrencies, particularly stablecoins like USD Coin (USDC), has gained immense popularity...

Unlocking the World of Commodities: An In-Depth Exploration

Commodity markets have often been portrayed as a realm for high-risk individuals, and while there's some historical accuracy in that depiction, the reality is that nearly every type of investor engages in commodity markets...

What is an NFT?

It is fair to say that 2021 was the year of NFT, Ethereum’s enfant terrible. Non-fungible tokens invaded the world of digital currencies to become...

Margin Call: What It Is & How to Avoid It

You have probably heard about an unpleasant surprise to traders: a margin call. And we hope you do not know how bad it might be for your money. A margin call is a broker’s demand...

What is hedging? Protecting assets from market storms

Hedging in the financial markets is one of the risk management techniques. It’s a sort of insurance cover to protect against potential losses from an investment...

Market Hiccup or Potential Loss

This article will focus primarily on the price actions of retracement and reversal...

Best Cryptocurrency to Invest in During 2020

While Bitcoin is still very much the most well known, and most widely regarded cryptocurrency around, it is only one in a list of near thousands...

What US stocks can grow during coronavirus pandemic

Unprecedented sell-offs in global stock markets led the S & P500 to fall by more than 30%. The Dow Jones Index fell more than 35%. Given the increased volatility, at the moment of a mood...

Secrets of Successful Forex Gold Trading

Most beginners and intermediate traders when choosing financial instruments for trading limit themselves to currency pairs. Today, many Forex brokers...

Secrets of trading in the Asian session

Practically every trader knows that the particular dynamics of the pricing of financial instruments depends not only on the selected asset, but also...

Six Types of Index Funds And How To Choose One

New to trading products like indices that offer instant diversification? Open a demo account with Vantage Markets today and practise your trading strategies...

Trust Management vs PAMM

In the many countries, the banking sector was, and still remains, the most common investment segment. The share of bank deposits in an...

The Top 10 Forex Brokers With Tightest Spreads

One of the main rules of money management in Forex lies in taking the broadness of the spread into account when executing trades. Low spreads in Forex means...

Trading on the news: Pros and Cons

Most often, the most significant changes in the Forex market occur after the financial, economic and political news and the reaction of the market to them...

Bonds in 2023: Deep Dive into 7 Essential Bond Types for Investors

In the world of investment, bonds stand as one of the cornerstones, allowing entities, whether corporate or governmental, to secure funds over an agreed duration...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.