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{{Short description|Country's economy that was traditionally small, but is currently expanding rapidly}}
{{More citations needed|date=September 2024}}

An '''emerging market''' (or an '''emerging country''' or an '''emerging economy''') is a market that has some characteristics of a [[developed market]], but does not fully meet its standards.<ref>{{cite web|title=MSCI Market Classification Framework|url=https://www.msci.com/resources/products/indexes/global_equity_indexes/gimi/stdindex/MSCI_Market_Classification_Framework.pdf}}</ref> This includes markets that may become developed markets in the future or were in the past.<ref>{{cite news|url=https://www.bloomberg.com/news/2013-06-11/greece-first-developed-market-cut-to-emerging-as-uae-upgraded.html|title=Greece First Developed Market Cut to Emerging at MSCI – Bloomberg|newspaper=Bloomberg.com|date=12 June 2013}}</ref> The term "[[frontier market]]" is used for [[Developing country|developing countries]] with smaller, riskier, or more illiquid capital markets than "emerging".<ref>[http://www.marketwatch.com/story/msci-downgrade-argentina-frontier-market-new-york MSCI will downgrade Argentina to frontier market – MarketWatch] MarketWatch</ref> As of 2025, the economies of [[Economy of China|China]] and [[Economy of India|India]] are considered to be the largest emerging markets.<ref>"Emerging Economies and the Transformation of International Business" By Subhash Chandra Jain. Edward Elgar Publishing, 2006 p. 384.</ref> According to ''[[The Economist]]'', many people find the term outdated, but no new term has gained traction.<ref>{{Cite news|url=https://www.economist.com/specialreports/displaystory.cfm?story_id=12080703|title=Acronyms BRIC out all over|date=September 18, 2008|newspaper=[[The Economist]]|access-date=April 14, 2011}}</ref> Emerging market hedge fund capital reached a record new level in the first quarter of 2011 of $121 billion.<ref>{{cite news|url=http://www.business-standard.com/india/news/brics-is-passe-time-now-for-%5C3g%5C-citi/126725/on|title=BRICS is passe, time now for '3G': Citi|newspaper=Business Standard India|date=23 February 2011|access-date=24 August 2018|via=Business Standard|agency=Press Trust of India}}</ref> Emerging market economies' share of global [[Purchasing power parity|PPP]]-adjusted GDP has risen from 27 percent in 1960 to around 53 percent by 2013.<ref name="imf.org">{{Cite web |title=Emerging Market Heterogeneity: Insights from Cluster and Taxonomy Analysis |url=https://www.imf.org/en/Publications/WP/Issues/2016/12/31/Emerging-Market-Heterogeneity-Insights-from-Cluster-and-Taxonomy-Analysis-43085 |access-date=2023-01-08 |website=IMF |language=en}}</ref> The ten largest emerging economies by [[List of countries by GDP (nominal)|nominal GDP]] are 4 of the 9 [[BRICS]] countries ([[Brazil]], [[Russia]], [[India]], and [[China]]) along with [[Mexico]], [[South Korea]], [[Indonesia]], [[Turkey]], [[Saudi Arabia]], and [[Poland]]. The inclusion of South Korea, Poland, and sometimes Taiwan are questionable given they are no longer considered emerging markets by the IMF and World Bank (for Korea and Taiwan). If we ignore those three, the top ten would include [[Argentina]] and [[Thailand]].

When countries "graduate" from their emerging status, they are referred to as '''emerged markets''', '''emerged economies''' or '''emerged countries''', where countries have developed from emerging economy status, but have yet to reach the technological and economic development of developed countries.<ref name="Lee 101925">{{Cite journal|last1=Lee|first1=Eun Su|last2=Liu|first2=Wei|last3=Yang|first3=Jing Yu|date=2021-09-23|title=Neither developed nor emerging: Dual paths for outward FDI and home country innovation in emerged market MNCs|url=https://www.sciencedirect.com/science/article/pii/S0969593121001438|journal=International Business Review|volume=32 |issue=2 |language=en|article-number=101925|doi=10.1016/j.ibusrev.2021.101925|s2cid=244268711|issn=0969-5931|url-access=subscription}}</ref>

==Terminology==

In the 1970s, "less developed countries" (LDCs) was the common term for markets that were less "developed" (by objective or subjective measures) than the developed countries such as the United States, Japan, and those in [[Western Europe]]. These markets were supposed to provide greater potential for profit but also more risk from various factors like [[patent infringement]]. This term was replaced by ''emerging market''. The term is misleading in that there is no guarantee that a country will move from "less developed" to "more developed"; although that is the general trend in the world, countries can also move from "more developed" to "less developed".

Originally coined in 1981 by then [[World Bank]] economist Antoine Van Agtmael,<ref>{{cite news |last=Authers |first=John |date=20 October 2006 |title=The Long View: How adventurous are emerging markets? |website=Financial Times |url=https://www.ft.com/content/be77e600-605f-11db-a716-0000779e2340 |access-date=24 August 2018}}</ref><ref name="veconomist" >{{cite news|author=Simon Cox|title=Defining emerging markets|url=https://www.economist.com/news/special-report/21729866-self-fulfilling-prophecy-defining-emerging-markets|newspaper=[[The Economist]]|date=5 October 2017}}</ref>  the term is sometimes loosely used as a replacement for ''emerging economies'', but really signifies a business phenomenon that is not fully described or constrained by such; these countries are considered to be in a transitional phase between [[developing country|developing]] and [[developed country|developed]] status. Examples of emerging markets include many countries in Africa, most countries in Eastern Europe, some countries of Latin America, some countries in the Middle East, Russia and some countries in Southeast Asia. Emphasizing the fluid nature of the category, political scientist [[Ian Bremmer]] defines an emerging market as "a country where politics matters at least as much as economics to the markets".<ref>http://custom.hbsp.com/b01/en/implicit/product.jhtml?login=BREM060105&password=BREM060105&pid=1126 {{dead link|date=November 2016|bot=InternetArchiveBot|fix-attempted=yes}}</ref>

The research on emerging markets is diffused within [[management]] literature. While researchers such as [[George Haley]], [[Vladimir Kvint]], [[Hernando de Soto (economist)|Hernando de Soto]], [[Usha Haley]], and several professors from [[Harvard Business School]] and [[Yale School of Management]] have described activity in countries such as India and China, how a market emerges is now well understood and can easily be modeled.

In 2009, Dr. Kvint published this definition: "an emerging market country is a society transitioning from a dictatorship to a free-market-oriented-economy, with increasing economic freedom, gradual integration with the Global Marketplace and with other members of the GEM (Global Emerging Market), an expanding middle class, improving standards of living, social stability and tolerance, as well as an increase in cooperation with multilateral institutions"<ref>{{cite book|last=Kvint|first=Vladimir|title=The Global Emerging Market: Strategic Management and Economics|year=2009|publisher=Routledge |location=New York, London}}</ref>
In 2008 Emerging Economy Report,<ref>{{cite web| url=http://www.emergingeconomyreport.com| title=Emerging Economy Report| archive-url=https://web.archive.org/web/20111004091606/http://www.emergingeconomyreport.com/| archive-date=4 October 2011| access-date=24 August 2018}}</ref> the Center for Knowledge Societies defines ''emerging economies'' as those "regions of the world that are experiencing rapid informationalization under conditions of limited or partial [[Industrialisation|industrialization]]". It appears that emerging markets lie at the intersection of non-traditional user behavior, the rise of new user groups and community adoption of products and services, and innovations in product technologies and platforms.

More critical scholars have also studied key emerging markets like Mexico and Turkey. Thomas Marois (2012, 2) argues that financial imperatives have become much more significant and has developed the idea of 'emerging finance capitalism' – an era wherein the collective interests of financial capital principally shape the logical options and choices of government and state elites over and above those of labor and popular classes.<ref>{{cite book|last=Marois|first=Thomas|title=States, Banks and Crisis: Emerging Finance Capitalism in Mexico and Turkey|year=2012|publisher=Edward Elgar|location=Cheltenham, Gloucestershire, UK}}</ref>

Julien Vercueil recently proposed an pragmatic definition of the "emerging economies", as distinguished from "emerging markets" coined by an approach heavily influenced by financial criteria. According to his definition, an emerging economy displays the following characteristics:<ref name="Vercueil">Vercueil, Julien: "Les pays émergents. Brésil – Russie – Inde – Chine... Mutations économiques et nouveaux défis " (Emerging Countries. Brazil – Russia – India – China.. Economic change and new challenges", in French). Paris: Bréal, 3rd Edition, 2012, 232 p.</ref>

# Intermediate income: its PPP per capita income is comprised between 10% and 75% of the average EU per capita income.
# Catching-up growth: during at least the last decade, it has experienced a brisk economic growth that has narrowed the income gap with advanced economies.
# Institutional transformations and economic opening: during the same period, it has undertaken profound institutional transformations which contributed to integrate it more deeply into the world economy. Hence, emerging economies appears to be a by-product of the current globalization.

At the beginning of the 2010s, more than 50 countries, representing 60% of the world's population and 45% of its GDP, matched these criteria.<ref name="Vercueil"/>{{rp|10}} Among them, the BRICs.

[[File:Newly industrialized countries 2013.svg|thumb|[[Newly industrialized country|Newly industrialized countries]] as of 2013. This is an intermediate category between fully developed and developing.]]
The term "rapidly developing economies" is being used to denote emerging markets such as The United Arab Emirates, Chile and Malaysia that are undergoing rapid growth.

In recent years, new terms have emerged to describe the largest developing countries such as [[BRIC (economics term)|BRIC]] (Brazil, Russia, India, and China),<ref>{{cite web | last=Farah | first=Paolo Davide | title=Five Years of China WTO Membership: EU and US Perspectives About China's Compliance With Transparency Commitments and the Transitional Review Mechanism | date=2006-08-04 | url=https://papers.ssrn.com/sol3/papers.cfm?abstract_id=916768 | access-date=2024-01-27|ssrn = 916768}}</ref> along with ''BRICET'' (BRIC + Eastern Europe and Turkey), ''BRICS'' (BRIC + South Africa), ''BRICM'' (BRIC + Mexico), [[MINT (economics)|MINT]] (Mexico, Indonesia, Nigeria and Turkey), [[Next Eleven]] (Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, the Philippines, South Korea, Turkey, and Vietnam) and [[CIVETS]] (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa).<ref>{{cite news|url=https://www.reuters.com/article/idUSLDE63Q26Q20100427|title=After BRICs, look to CIVETS for growth – HSBC CEO|newspaper=Reuters|date=27 April 2010|access-date=24 August 2018}}</ref> These countries do not share any common agenda, but some experts believe that they are enjoying an increasing role in the world economy and on political platforms.

Lists of emerging (or developed) markets vary; guides may be found in such investment information sources as ''EMIS'' (a Euromoney Institutional Investor Company), ''[[The Economist]]'', or market index makers (such as [[MSCI]]).

In an Opalesque.TV video, [[hedge fund]] manager Jonathan Binder discusses the current and future relevance of the term "emerging markets" in the financial world. Binder says that in the future investors will not necessarily think of the traditional classifications of "[[Group of Ten (IMF)|G10]]" (or [[G7]]) versus "emerging markets". Instead, people should look at the world as countries that are fiscally responsible and countries that are not. Whether that country is in Europe or in South America should make no difference, making the traditional "[[Economic Bloc|blocs]]" of categorization irrelevant. Guégan ''et al.'' (2014) also discuss the relevance of the terminology "emerging country" comparing the credit worthiness of so-called emerging countries to so-called developed countries. According to their analysis, depending on the criteria used, the term may not always be appropriate.<ref>{{cite book |last1 = Guégan |first1 = D. |last2 = Hassani |first2 = B.K. |last3 = Zhao |first3 = X. |editor1-last = El Hedi Arouri | editor1-first = M. |editor2-last = Boubaker | editor2-first = S. |editor3-last = Khuong Nguyen | editor3-first = D. |title = Emerging Markets and the Global Economy: A Handbook |chapter = Emerging Countries Sovereign Rating Adjustment using Market Information: Impact on Financial Institutions Investment Decisions |year = 2014 |pages = 17–49 |publisher = Academic Press |location=Oxford, UK}}</ref>

The 10 ''Big Emerging Markets'' (BEM) economies are (alphabetically ordered): Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey.<ref>{{cite web|url= https://www.nytimes.com/books/first/g/garten-ten.html|title= The Big Ten|website= [[The New York Times]]|access-date=13 February 2015}}</ref> Egypt, Iran, Nigeria, Pakistan, Russia, Saudi Arabia,<ref>{{Cite web|url=https://ameinfo.com/money/banking-finance/saudi-msci/|title=Stock market buyers to come to Saudi as Tadawul gets MSCI nod|website=ameinfo.com|date=21 June 2018|language=en|access-date=2018-06-21|archive-date=2019-04-03|archive-url=https://web.archive.org/web/20190403070344/https://ameinfo.com/money/banking-finance/saudi-msci/|url-status=dead}}</ref> Taiwan, and Thailand are [[List of countries by GDP (PPP)|other major emerging markets]].

[[Newly industrialized country|Newly industrialized countries]] are emerging markets whose economies have not yet reached developed status but have, in a macroeconomic sense, outpaced their developing counterparts.

Individual investors can invest in emerging markets by buying into emerging markets or global funds. If they want to pick single stocks or make their own bets they can do it either through ADRs (American depositor Receipts – stocks of foreign companies that trade on US stock exchanges) or through exchange traded funds (exchange traded funds or ETFs hold basket of stocks). The exchange traded funds can be focused on a particular country (e.g., China, India) or region (e.g., Asia-Pacific, Latin America).

== Emerged market ==
Also referred to as "emerged economy" or "emerged country".

Emerging markets share the economic characteristics such as low income, high growth economies that use market liberalization as their main means of growth. Of course, emerging economies can develop out of such emerging status, entering the post-emerging stage. When emerging markets are promoted from their economic status, they are referred to as emerged markets.<ref name="Lee 101925"/> Countries like [[Israel]], [[Poland]], [[South Korea]], [[Taiwan]], the [[Czech Republic]], and city-states such as [[Singapore]] have transitioned from emerging to "emerged".<ref name="Lee 101925"/> These emerged markets tend to be characterized by higher incomes and relatively stable political schemes, compared to those categorized as emerging markets.<ref name="Lee 101925"/>

== Commonly listed countries ==
Various sources list countries as "emerging economies" as indicated by the table below.

A few countries appear in every list (BRICS, Mexico, Turkey, South Africa). Indonesia and Turkey are categorized with Mexico and Nigeria as part of the [[MINT (economics)|MINT]] economies. While there are no commonly agreed upon parameters on which the countries can be classified as "Emerging Economies", several firms have developed detailed methodologies to identify the top performing emerging economies every year.<ref>{{cite web|title=Boston Analytics – Pathways to identifying top performing Emerging Markets|date=22 June 2016|url=http://www.slideshare.net/KimberleeLuce/emerging-markets-pathways-to-selection}}</ref> While often treated as one group, emerging market economies are diverse in their factor endowments as well as real, financial, and external linkages.<ref name="imf.org"/> Beyond their levels of financial integration and overall economic development, the size of each market also matters because smaller (but otherwise just as developed) markets may be considered less favorable investment targets.

{| class="wikitable sortable" style="font-size:90%; text-align:center"
|+ Emerging markets by each group of analysts
! Country
! [[International Monetary Fund|IMF]]<ref>As of October, 2015. http://www.imf.org/external/pubs/ft/weo/2015/02/pdf/text.pdf</ref>
! [[BRICS]]
![[Jim O'Neill, Baron O'Neill of Gatley#Next Eleven|Next Eleven]]
! [[FTSE Group|FTSE]]<ref>Advanced and Secondary Emerging Markets listed at: {{cite web|url=http://www.ftse.com/products/downloads/FTSE-Country-Classification-Update_latest.pdf|title=FTSE Annual Country Classification Review|access-date=2015-02-04|date=September 2014|website=[[FTSE Group]]}}</ref>
! MSCI<ref>{{Cite web|url=https://www.msci.com/products/indexes/country_and_regional/em/|access-date=2015-02-02|title=MSCI Emerging Markets Indexes}}</ref>
! [[Standard & Poor's|S&P]]<ref name="spindices.com">{{cite web|url=https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/725551_spdji2018countryclassificationconsultation6.13.18.pdf|title=S&P Dow Jones Indices' 2018 Country Classification Consultation|date=13 June 2018|website=S&P Dow Jones Indices|publisher=spice-indices.com|archive-url=https://web.archive.org/web/20190309181835/https://www.spice-indices.com/idpfiles/spice-assets/resources/public/documents/725551_spdji2018countryclassificationconsultation6.13.18.pdf|archive-date=9 March 2019|access-date=9 March 2019}}</ref>
! JPM EM bond index<ref name=":0">{{Cite web|url=https://markets.jpmorgan.com/#research.emerging_markets.index|title=Emerging Markets Bond Index Monitor March 2016|last=J.P. Morgan|date=April 1, 2016|publisher=J.P. Morgan|access-date=April 1, 2016}}</ref>
! [[Dow Jones & Company|Dow Jones]]<ref name="spindices.com"/>
! [[Russell Investments|Russell]]<ref>{{cite web|url=http://www.russell.com/documents/indexes/construction-methodology-global-indexes.pdf|title=Russell construction methodology|access-date=2015-02-02|date=October 2014}}</ref>
! Columbia University EMGP<ref>{{cite web|url=http://ccsi.columbia.edu/publications/emgp/|access-date=2015-02-02|title=Emerging Market Global Players (EMGP)|archive-date=2015-02-02|archive-url=https://web.archive.org/web/20150202215119/http://ccsi.columbia.edu/publications/emgp/}}</ref>
! Cornell University EMI E20+1 (2023)<ref>{{cite report | last1=Casanova | first1=Lourdes | last2=Miroux | first2=Anne | title=Emerging Market Multinationals Report 2023: Risks and Realignments | date=2023 | publisher=Cornell University Library | doi=10.7298/9j27-ng36.2 | url=https://www.johnson.cornell.edu/emerging-markets-institute/emerging-markets-report/}}</ref>
|-
| align="left"| {{flag|Argentina}} || {{y}} || 
| || || || || {{y}} || || || {{y}} || {{y}}
|-
| align="left"| {{flag|Bangladesh}} || {{y}} ||
|{{y}}|| || ||  ||{{y}} || || || || {{y}} 
|-
| align="left"| {{flag|Brazil}} || {{y}} || {{y}} 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} 
|-
| align="left"| {{flag|Bulgaria}} || {{y}} || 
| || || || || || || || ||
|-
| align="left"| {{flag|Chile}} || {{y}} || 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} 
|-
| align="left"| {{flag|China}} || {{y}} || {{y}} 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} 
|-
| align="left"| {{flag|Colombia}} || {{y}} || 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} 
|-
| align="left"| {{flag|Czech Republic}} || || 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || ||
|-
| align="left"| {{flag|Egypt}} || || {{y}} 
|{{y}}|| {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || || {{y}} || {{y}} 
|-
| align="left"| {{flag|Greece}} || || 
| || {{Y}} || {{y}} || {{y}} || || {{y}} || {{y}} || ||
|-
| align="left"| {{flag|Hungary}} || {{y}} || 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || 
|-
| align="left"| {{flag|India}} || {{y}} || {{y}} 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}}
|-
| align="left"| {{flag|Indonesia}} || {{y}} || {{y}} 
|{{y}}|| {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || || {{y}}
|-
| align="left"| {{flag|Iran}} || || {{y}} 
|{{y}}|| || || || || || || || {{y}}
|-
| align="left"| {{flag|Israel}} || || 
| || || || || {{y}} || || || {{y}} || 
|-
| align="left"| {{flag|South Korea}} || ||
|{{y}}|| || {{y}} || || || || || {{y}} || 
|-
| align="left"| {{flag|Kuwait}} || || 
| || {{y}} ||{{y}} ||{{y}} || || || || ||
|-
| align="left"| {{flag|Malaysia}} || {{y}} || 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || || {{y}} 
|-
| align="left"| {{flag|Mauritius}} || || 
| || || || || || || || {{y}} ||
|-
| align="left"| {{flag|Mexico}} || {{y}} ||
|{{y}}|| {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}}
|-
| align="left"| {{flag|Morocco}} || {{y}} || 
| || {{y}} || || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} || 
|-
| align="left"| {{flag|Nigeria}} || ||
|{{y}}|| || || || {{y}} || || || || {{y}} 
|-
| align="left"| {{flag|Oman}} || || 
| || || || || {{y}} || || || ||
|-
| align="left"| {{flag|Pakistan}} || {{y}} ||
|{{y}}|| {{y}} || ||{{y}} ||{{y}} || || || || {{y}} 
|-
| align="left"| {{flag|Peru}} || {{y}} || 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || ||
|-
| align="left"| {{flag|Philippines}} || {{y}} ||
|{{y}}|| {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || || {{y}}
|-
| align="left"| {{flag|Poland}} || {{y}} || 
| || ||{{y}} || {{y}}  || {{y}} || {{y}} ||  ||{{y}} ||
|-
| align="left"| {{flag|Qatar}} || || 
| || {{y}} || {{y}} ||{{y}} || {{y}} || {{y}} || || ||
|-
| align="left"| {{flag|Romania}} || {{y}} || 
| || {{y}} || || || {{y}} || || || || {{y}} 
|-
| align="left"| {{flag|Russia}} || {{y}} || {{y}} 
| || {{y}} || || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}}
|-
| align="left"| {{Flag|Saudi Arabia}}|| || 
| ||{{y}} ||{{y}} || || || || || ||
|-
| align="left"| {{flag|South Africa}} || {{y}} || {{y}} 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} 
|-
| align="left"| {{flag|Taiwan}} || || 
| || {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || 
|-
| align="left"| {{flag|Thailand}} || {{y}} || 
| || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} || {{y}} || {{y}}
|-
| align="left"| {{flag|Turkey}} || {{y}} ||
|{{y}}|| {{y}} || {{y}} || {{y}}  || {{y}} || {{y}} || {{y}} || {{y}} || {{y}}
|-
| align="left"| {{flag|Ukraine}} || {{y}} || 
| || || || || {{y}} || || || ||
|-
| align="left"| {{nowrap|{{flag|United Arab Emirates}}}} || || 
| || {{y}} || {{y}} ||{{y}} ||{{y}} || {{y}} || {{y}} || {{y}} ||
|-
| align="left"| {{flag|Venezuela}} || {{y}} || 
| || || || || {{y}} || || || ||
|-
| align="left"| {{flag|Vietnam}} || ||
|{{y}}|| || || || || || || || {{y}}
|}

==BBVA Research==
In November 2010, [[BBVA]] Research introduced a new economic concept, to identify key (i.e. large and fast growing) emerging markets.<ref>{{cite web | url=https://www.bbvaresearch.com/KETD/fbin/mult/2014_EAGLEs_Economic_Outllok-Annual_tcm348-437158.pdf?ts=3132014 | title=EAGLEs Economic Outlook }}</ref>
This classification divided economies into two groups based on the overall size of each market and its absolute (not per capita) growth potential.

As of 2014, the groupings were as follows:

'''EAGLEs''' (emerging and growth-leading economies): Expected Incremental GDP in the next 10 years to be larger than the average of the G7 economies, excluding the US.

{{div col|colwidth=15em}}
* {{flag|Brazil}}
* {{flag|China}}
* {{flag|South Korea}}
* {{flag|India}}
* {{flag|Indonesia}}
* {{flag|Mexico}}
* {{flag|Russia}}
* {{flag|Turkey}}
{{div col end}}

'''NEST''': Expected Incremental GDP in the next decade to be lower than the average of the G6 economies (G7 excluding the US) but higher than Italy's.

{{div col|colwidth=15em}}
* {{flag|Argentina}}
* {{flag|Bangladesh}}
* {{flag|Chile}}
* {{flag|Colombia}}
* {{flag|Egypt}}
* {{flag|Iran}}
* {{flag|Iraq}}
* {{flag|Kazakhstan}}
* {{flag|Malaysia}}
* {{flag|Nigeria}}
* {{flag|Pakistan}}
* {{flag|Peru}}
* {{flag|Philippines}}
* {{flag|Poland}}
* {{flag|Qatar}}
* {{flag|Saudi Arabia}}
* {{flag|South Africa}}
* {{flag|Thailand}}
* {{flag|Vietnam}}
{{div col end}}

'''Other emerging markets'''<ref>https://www.bbvaresearch.com/en/publicaciones/eagles-economic-outlook-annual-report-2016/ EAGLEs Economic Outlook. Annual Report 2016 (October 2022), page 53</ref>

{{div col|colwidth=15em}}
* {{flag|Bahrain}}
* {{flag|Bulgaria}}
* {{flag|Hungary}}
* {{flag|Jordan}}
* {{flag|Kuwait}}
* {{flag|Latvia}}
* {{flag|Lithuania}}
* {{flag|Mauritius}}
* {{flag|Morocco}}
* {{flag|Oman}}
* {{flag|Romania}}
* {{flag|Sri Lanka}}
* {{flag|Sudan}}
* {{flag|Tunisia}}
* {{flag|United Arab Emirates}}
* {{flag|Ukraine}}
* {{flag|Venezuela}}
{{div col end}}

==Emerging Market Bond Index Global==
The [[JPMorgan EMBI|Emerging Market Bond Index Global]] (EMBI Global) by [[J.P. Morgan & Co.|J.P. Morgan]] was the first comprehensive EM sovereign index in the market, after the EMBI+. It provides full coverage of the EM asset class with representative countries, investable [[Financial instrument|instruments]] (sovereign and quasi-sovereign), and transparent rules.
The EMBI Global includes only USD-denominated emerging markets sovereign bonds and uses a traditional, [[market capitalization]] weighted method for country allocation.<ref name=":1">{{Cite book|title=EMBI Global and EMBI Global Diversified Rules and Methodology|last=J.P. Morgan|publisher=J.P. Morgan|year=2015|pages=10 pp}}</ref> As of March end 2016, the EMBI Global's market capitalization was $692.3bn.<ref name=":0" />

For country inclusion, a country's [[Gross national income|GNI]] per capita must be below the Index Income Ceiling (IIC) for three consecutive years to be eligible for inclusion to the EMBI Global. J.P. Morgan defines the Index Income Ceiling (IIC) as the GNI per capita level that is adjusted every year by the growth rate of the World GNI per capita, [[Atlas method]] (current US$), provided by the World Bank annually. An existing country may be considered for removal from the index if its GNI per capita is above the Index Income Ceiling (IIC) for three consecutive years as well as the country's long term foreign currency sovereign credit rating (the available ratings from all three agencies: S&P, Moody's & Fitch) is A-/A3/A- (inclusive) or above for three consecutive years.<ref name=":1" />

J.P. Morgan has introduced what is called an "Index Income Ceiling" (IIC), defined as the income level that is adjusted every year by the growth rate of the World GNI per capita, provided by the World Bank as "GNI per capita, Atlas method (current US$) annually". Once a country has GNI per capita below or above the IIC level for three consecutive years, the country eligibility will be determined.<ref name=":1" />
* J.P. Morgan has established the base IIC level in 1987 to match the World Bank High Income threshold at US$6,000 GNI per capita.
* Every year, growth in the World GNI per capita figure is applied to the IIC, establishing a new IIC that is dynamic over time.
* This approach ensures that J.P. Morgan's cutoff for index removal is adjusted by the World income growth rate, and not by the inflation rate of a smaller sample of Developed economies.
* This metric essentially incorporates real global growth, global inflation, and currency exchange rate (current USD-denominated) changes.
* Essentially, the introduction of the IIC establishes a higher, more appropriate threshold for country eligibility in the EMBI Global/Diversified.

==Emerging Markets Index==
The '''Emerging Markets Index''' by [[MasterCard]] is a list of the top 65 cities in emerging markets. The following countries had cities featured on the list:<ref>{{cite web|title=MSCI Emerging Markets Index|url=https://www.investopedia.com/terms/e/emergingmarketsindex.asp| website=[[Investopedia]]|access-date=May 17, 2022}}</ref><ref>{{cite web|title= MSCI Emerging Markets Index (USD)|url=https://www.msci.com/documents/10199/c0db0a48-01f2-4ba9-ad01-226fd5678111| website=[[MSCI]]}}</ref>

{| class="wikitable" 
! style="background:#ddf"|Continent
! style="background:#ddf"|Region
! style="background:#ddf"|Country
|-
| rowspan="13" valign="top" | [[Asia]]
| rowspan="3" valign="top" | [[East Asia]]
| {{flag|China}}
|-
| {{flag|South Korea}}
|-
| {{flag|Taiwan}}
|-
| rowspan="2" valign="top" | [[South Asia]]
| {{flag|India}}
|-
| {{flag|Pakistan}}
|-
| rowspan="4" valign="top" | [[South East Asia]]
| {{flag|Indonesia}}
|-
| {{flag|Malaysia}}
|-
| {{flag|Philippines}}
|-
| {{flag|Thailand}}
|-
| rowspan="4" valign="top" | [[Middle East]]
| {{flag|Kuwait}}
|-
| {{flag|Qatar}}
|-
| {{flag|Saudi Arabia}}
|-
| {{flag|United Arab Emirates}}
|-
| rowspan="5" colspan="2" valign="top" | [[Americas]]
| {{flag|Mexico}}
|-
| {{flag|Brazil}}
|-
| {{flag|Chile}}
|-
| {{flag|Colombia}}
|-
| {{flag|Peru}}
|-
| rowspan="2" colspan="2" valign="top" | [[Africa]]
| {{flag|Egypt}}
|-
| {{flag|South Africa}}
|-
| rowspan="5" colspan="2" valign="top" | [[Europe]]
| {{flag|Czech Republic}}
|-
| {{flag|Hungary}}
|-
| {{flag|Poland}}
|-
| {{flag|Russia}}
|-
| {{flag|Turkey}}
|-
|}

==Emerging Market Multinationals Report==
Launched in 2016 by [[Lourdes Casanova]], Anne Miroux, at Emerging Markets Institute,<ref>{{cite web|title=Emerging Markets Institute|date=12 March 2024|url=https://www.johnson.cornell.edu/emerging-markets-institute/}}</ref> at the [[Samuel Curtis Johnson Graduate School of Management]], [[Cornell University]], the Emerging Market Multinationals Report<ref>{{cite web|title=Emerging Market Multinationals Report|date=12 March 2024|url=https://www.johnson.cornell.edu/emerging-markets-institute/emerging-markets-report/}}</ref> analyzes the economic performance of the emerging economies and emerging market multinationals (EMNCs), exploring among others the foreign investment, revenues, valuation and other business data of these firms with the help of the EMI research team. The second part of the report includes chapters by EmNet at the [[OECD Development Centre]], [[International Finance Corporation]] at the [[World Bank Group]], the business school at the [[University of the Andes (Colombia)]], and other universities of the Emerging Multinationals Research Network<ref>{{cite web|title=Emerging Multinationals Research Network|date=12 March 2024|url=https://www.emnrn.net/}}</ref> and beyond.

The report launched the emerging economies "E20+1" grouping, that includes the top 20 emerging economies plus China. These economies are selected based on nominal gross domestic product (GDP) per capita, share in global trade and poverty levels.<ref>{{cite report|url=https://doi.org/10.7298/9j27-ng36.2|access-date=2023-02-16|title=Emerging Markets Report 2022: Reinventing Global Value Chains|year=2022|doi=10.7298/9j27-ng36|last1=Casanova|first1=Lourdes|last2=Miroux|first2=Anne|publisher=Cornell University Library|hdl=1813/112770}}</ref>

In the 2020 report, EMI published the different milestones of the E20 countries.<ref>{{cite report|title=Emerging Market Multinationals Report 2020: 10 Years that Changed Emerging Markets|year=2020|doi=10.7298/cvhn-dc87|last1=Casanova|first1=Lourdes|last2=Miroux|first2=Anne|publisher=Cornell University Library|hdl=1813/102811}}</ref> In 2021, launched the EMI Ranking of the 500 largest companies by revenue (EMNC 500R), the 500 largest by market capitalization (500MC), and the 200 best ESG performer companies (200ESG).<ref>{{cite report|title=Emerging Market Multinationals Report 2021: Building the Future on ESG Excellence|year=2021|doi=10.7298/y6j0-wd64|last1=Casanova|first1=Lourdes|last2=Miroux|first2=Anne|publisher=Cornell University Library|hdl=1813/110935}}</ref><ref>{{cite web|url=https://datastudio.google.com/s/knLxGVwHCZA|access-date=2022-04-18|title=EMI EMNC Rankings}}</ref> In 2022, the report released D-ESG ranking of the E20+1. The D-ESG ranking assesses countries based on their economic growth (D) and ESG performances.<ref>{{cite report|url=https://doi.org/10.7298/9j27-ng36.2|access-date=2023-02-16|title=Emerging Markets Report 2022: Reinventing Global Value Chains|year=2022|doi=10.7298/9j27-ng36|last1=Casanova|first1=Lourdes|last2=Miroux|first2=Anne|publisher=Cornell University Library|hdl=1813/112770}}</ref>

==Global Growth Generators==
"Global Growth Generators", or [[3G (countries)]], is an alternative classification determined by [[Citigroup]] analysts as being countries with the most promising growth prospects for 2010–2050. These consist of Indonesia, Egypt, seven other emerging countries, and two countries not previously listed before, specifically [[Iraq]] and [[Mongolia]]. There has been disagreement about the reclassification of these countries, among others, for the purpose of acronym creation as was seen with the BRICS.

== Estimating Demand in Emerging Markets ==
Estimating the demand for products or services in emerging markets and developing economies can be complex and challenging for managers. These countries have unique commercial environments and may be limited in terms of reliable data, market research firms, and trained interviewers. Consumers in some of these countries may consider surveys an invasion of privacy.<ref>{{Cite book|title = International business: strategy, management, and the new realities|last = Cavusgil, Tamer|publisher = Pearson Prentice Hall|year = 2008|isbn = 978-0-13-173860-7}}</ref> Survey respondents may try to please researchers by telling them what they want to hear rather than providing honest answers to their questions. However some companies have dedicated their entire business units for understanding the dynamics of emerging markets owing to their peculiarity.<ref>{{cite web|title=Boston Analytics – Doing Business in Emerging Markets Framework|date=22 June 2016|url=http://www.slideshare.net/KimberleeLuce/emerging-markets-pathways-to-selection}}</ref>

==Economy==
The following table lists the GDP (PPP) projections of the 30 largest emerging economies for the year of 2025 (unless otherwise stated).<ref name="IMF Data">{{Cite web|title=World Economic Outlook Database October 2025|url=https://data.imf.org/en/Data-Explorer?datasetUrn=IMF.RES:WEO(9.0.0)|access-date=2025-11-08|website=www.imf.org}}</ref> Members of the [[BRICS]], the [[BRICS|BRICS Partners]] and/or the [[New Development Bank]] are in bold.

{{See also|List of countries by past and projected GDP (nominal)|List of countries by past and projected GDP (PPP)}}

{| class="wikitable"  style="text-align: right; float:left; border:1px solid #aaa; margin:10px"
|- style="background:#dbdbdb;"
! Rank
! Country
! Continent
! [[List of countries by past and projected GDP (PPP)|GDP (PPP)]] {{small|''(millions of [[International dollar|USD]])''}}
|-
| 1 ||align=left|'''{{flag|China}}'''||align=left|[[Economy of Asia|Asia]]||41,015,824
|-
| 2 ||align=left|'''{{flag|India}}'''||align=left|Asia||17,714,186
|-
|—||align=left|''{{flag|African Union}}''||align=left|[[Economy of Africa|Africa]] and Asia||11,579,393
|-
| 3 ||align=left|'''{{flag|Russia}}'''||align=left|[[Economy of Europe|Europe]] and Asia||7,143,093
|-
| 4 ||align=left|'''{{flag|Indonesia}}'''||align=left|{{nowrap|Asia and [[Economy of Oceania|Oceania]]}}||5,015,762
|-
| 5 ||align=left|'''{{flag|Brazil}}'''||align=left|{{nowrap|[[Economy of South America|South America]]}}||4,973,385
|-
| 6 ||align=left|{{flag|Turkey}} (2023)<ref name="WBGDPPPP">{{Cite web |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD|title=Peak GDP (PPP) by the World Bank for Turkey|access-date=2025-07-05}}</ref>||align=left|Asia and Europe||3,767,230
|-
| 7 ||align=left|{{flag|Mexico}}||align=left|[[Economy of North America|North America]]||3,436,930
|-
| 8 ||align=left|{{flag|South Korea}}||align=left|Asia||3,363,419
|-
| 9 ||align=left|'''{{flag|Saudi Arabia}}'''||align=left|Asia||2,688,520
|-
| 10 ||align=left|'''{{flag|Egypt}}'''||align=left|Africa and Asia||2,381,507
|-
| 11 ||align=left|'''{{flag|Nigeria}}'''||align=left|Africa||2,254,167
|-
| 12 ||align=left|{{flag|Poland}}||align=left|Europe||2,019,780
|-
| 13 ||align=left|{{flag|Taiwan}}||align=left|Asia||1,990,268
|-
| 14 ||align=left|'''{{flag|Iran}}'''||align=left|Asia||1,878,892
|-
| 15 ||align=left|'''{{flag|Thailand}}'''||align=left|Asia||1,853,771
|-
| 16 ||align=left|'''{{flag|Vietnam}}'''||align=left|Asia||1,807,050
|-
| 17 ||align=left|'''{{flag|Bangladesh}}'''||align=left|Asia||1,782,105
|-
| 18 ||align=left|{{flag|Pakistan}}||align=left|Asia||1,671,381
|-
| 19 ||align=left|{{flag|Argentina}}||align=left|South America||1,490,164
|-
| 20 ||align=left|'''{{flag|Malaysia}}'''||align=left|Asia||1,478,139
|-
| 21 ||align=left|{{flag|Philippines}}||align=left|Asia||1,477,711
|-
| 22 ||align=left|'''{{flag|Colombia}}'''||align=left|South America||1,189,465
|-
| 23 ||align=left|'''{{flag|South Africa}}'''||align=left|Africa||1,026,500
|-
| 24 ||align=left|{{flag|Singapore}}||align=left|Asia||953,943
|-
| 25 ||align=left|'''{{nowrap|{{flag|United Arab Emirates}}}}'''||align=left|Asia||935,449
|-
| 26 ||align=left|{{flag|Romania}} (2024)<ref>[https://data.worldbank.org/indicator/NY.GDP.MKTP.PP.CD World Bank's GDP (PPP) Data for Romania]</ref>||align=left|Europe||928,913
|-
| 27 ||align=left|'''{{flag|Kazakhstan}}'''||align=left|Asia and Europe||919,881
|-
| 28 ||align=left|'''{{flag|Algeria}}'''||align=left|Africa||874,599
|-
| 29 ||align=left|{{flag|Ukraine}} (2021)||align=left|Europe||746,471
|-
| 30 ||align=left|{{flag|Chile}}||align=left|South America||713,032
|}

{{Clear}}

==See also==
* [[Developed market]]
* [[Frontier market]]
* [[Global North and Global South]]
* [[Tehran Stock Exchange]]
* [[Free trade area]]

==References==
{{Reflist|30em}}

==External links==
{{wiktionary|emerging market}}

{{South-South}}
{{International power}}
{{Authority control}}

[[Category:Business terms]]
[[Category:Economic country classifications]]
[[Category:International development]]
[[Category:Economic geography]]
[[Category:Investment]]
[[Category:Lists of countries by economic indicator]]