‘An emerging market economy (EME) is defined as an economy with low-to-middle per capita income. Such countries constitute approximately 80% of the global population, representing about 20% of the world's economies.’

The practice of investing in developing economies has been happening for hundreds of years and a country seeks to develop its economy in order to increase foreign based investment, international trading and improve standards of living. Advanced economies also benefit from the development of human and natural resources, potential for greater political and economic stability, as well as more profitable international trading.

Emerging markets are diverse in terms of size, history and growth and tend to share some or all of the following characteristics:

• All emerging markets share a desire for growth and development and have set economic and political goals accordingly.
  
• Emerging markets usually have something considered as valuable in international trade, for example: natural resources, technology, labour (both skilled and unskilled), culture or location.
  
• Emerging markets can benefit from various international financial support programs designed to boost their economies. Financial assistance generally comes from organisations such as the International Monetary Fund and the World Bank, or in the form of aid donated by wealthy nations.
  
• Emerging Markets often receive special trading status which reduces tariffs for exporting to more advanced economies.
  
• Emerging market stocks and bonds offer the potential for high return in a relatively short period of time. However, the relatively unstable nature of EME’s is reflected in the risk levels which are usually much higher than those carried by more mature markets.
  
• Emerging markets can form trading groups among themselves.

Examples of Emerging Markets:

Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia,
South Africa, Taiwan, Thailand, Turkey, Venezuela.

There are many traditional ways of investing in emerging markets such as buying stocks and shares or investing in bonds. The growth of the economy also has other knock on effects and real estate will often rise in value as the market, and the economy in turn is strengthened.

For more information there are many sources and some useful links are listed below. As with all investments we always advise taking advice. There are many opportunities, but also many threats where political and economic conditions can change over night.

For further help, advice and opportunities please visit the
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