What is an emerging market?

An emerging market is characterized by its transition from a developing economy toward a more developed one, often marked by rapid growth, industrialization, and increasing investment in productive capacity. These markets typically experience significant economic changes, including expanding middle classes, rising consumer demand, and improvements in infrastructure.

Countries classified as emerging markets often have fluctuating economic and political conditions, but they show potential for growth that can attract foreign investments and foster business opportunities. The focus on enhancing productive capacity speaks to the dynamism and aspirations of these nations as they strive to elevate their economic status.

In contrast, a stable economy and political system, advanced technological infrastructure, or a high per capita income are more indicative of developed markets rather than emerging markets. These characteristics tend to be associated with countries that have already completed the transition that defines emerging markets.