• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

Emerging Market Economy (EME)

March 20, 2021
in Economy
Reading Time: 3 mins read
0
Emerging Market Economy (EME)
254
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF

What Are Emerging Markets? 

  • Emerging markets or emerging market economies are economies of countries that are in the progress of becoming a developed country and typically are moving toward mixed or free markets. 
  • Emerging market economies often have lower per capita income than developed countries, and often have liquidity in equity markets, are instituting regulatory bodies and exchanges, and see rapid growth. 
  • The term “emerging market economy” was first used in 1981 by Antoine W. Van Agtmael of the International Finance Corporation of the World Bank.
  • Emerging markets have played a large role in stimulating global economic growth, especially after the 1997 currency crisis – which necessitated an overhaul of many emerging market economies to become more sophisticated. 
  • Around 80% of the world’s economy is composed of emerging markets – including some of the largest countries in the world like China, India and Russia. 
  • As of 2017, China and India made over $32.6 trillion worth of economic output – while also making up 40% of all labor force and population on the planet. And, according to World Bank data last year, China is expected to represent over 35% of global gross domestic product (GDP) growth from 2017-2019. 

Characteristics of an Emerging Market Economy

  •  Rapid growth: The economic growth of countries with an emerging market economy typically grow by 6% to 7% annually, whereas countries with an already well-established economy report a growth rates below 3%
  • High productivity levels: Labor is characterized by low costs, which can stimulate production and increase employment levels. As a result, emerging markets can increase their international presence and improve their exports to foreign countries.
  • Increase in the middle class: Economic improvement in a country can lift its people out of poverty, which shifts them into the middle class.
  • Transition from a closed economy to an open economy: Developing countries run a closed economy, as they mainly focus on the local agricultural market. As such countries work towards economic advancement, they will want to engage in international trade to stimulate economic activity.
  • Instability and volatility: Emerging markets are vulnerable to changes, as their economies are still developing. They are especially susceptible to financial changes in currency, interest rates, and inflation.  
  • Attraction of foreign and local investments: Investing in businesses in emerging markets is riskier than businesses in developed countries. However, higher risk means higher returns, which attracts investors. 

Significance of an Emerging Market Economy

  • Emerging market economies in developing countries are essential in driving global economic growth. 
  • Currently, emerging market countries generate more than 50% of the world’s economic growth. 
  • By 2050, it is predicted that the top three largest economies will be China, India, and the United States. Two of the three countries are emerging market economies.
  • There are also increasingly more investments that are made in emerging market economies, which shows the investors’ confidence in such countries. For example, specific hedge funds help such economies raise more capital. 
  • The increase in foreign investments also helps to add more trading volume in the local stock exchange and generates more funding for businesses to succeed in the long-term.

Countries with an Emerging Market Economy

 BRICS

  • The BRICS countries is an acronym that refers to Brazil, Russia, India, China, and South Africa. 
  • They make up 40% of the world’s population and contribute to more than 25% of the world’s GDP. 
  • The BRICS countries are predicted to generate the economic potential to match the G7 countries.

Next Eleven

  • The “Next Eleven” (or N-11) is a term that refers to countries that can potentially become like the BRICS countries and with positive growth prospects. 
  • The countries are Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, Turkey, South Korea, and Vietnam.
  • The criteria used to select the N-11 countries were based on the country’s macroeconomic stability, political maturity, openness of trade, investment regulations, and educational quality.

MINT

  • MINT is a new term to distinguish Mexico, Indonesia, Nigeria, and Turkey. 
  • MINT countries were selected due to their rapid growth rate and investment opportunities
image_pdfMake PDF
Source: The Hindu
Tags: News PaperPrelims

Related Posts

World Economic Situation & Prospects report-2023

World Economic Situation & Prospects report-2023

February 3, 2023
What is a Unity mall?

What is a Unity mall?

February 2, 2023
High Net worth Individuals (HNIs)

High Net worth Individuals (HNIs)

February 2, 2023
SUMMARY OF THE INDIAN ECONOMIC SURVEY 2022-23

SUMMARY OF THE INDIAN ECONOMIC SURVEY 2022-23

February 1, 2023
XR Startup Program

XR Startup Program

January 31, 2023
What is short selling?

What is short selling?

January 28, 2023
The trade-plus-one(T+1) settlement plan

The trade-plus-one(T+1) settlement plan

January 27, 2023
SEBI’s information database on municipal bonds

SEBI’s information database on municipal bonds

January 25, 2023
Caller Name Presentation (CNAP) proposal by TRAI

Caller Name Presentation (CNAP) proposal by TRAI

January 20, 2023
Oxfam Report -‘Survival of the Richest’

Oxfam Report -‘Survival of the Richest’

January 19, 2023
Please login to join discussion
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News News Paper Newspaper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In