Emerging markets, or EM, also known as emerging economies or developing countries, are nations that are investing in more productive capacity.
They are moving away from their traditional economies that have relied on agriculture and the export of raw materials. The economy of a developing country becomes more engaged with global markets as it grows.
An emerging market economy is transitioning from a low-income, less developed, often pre-industrial economy towards a modern, industrial economy with a higher standard of living.
Emerging market economies can offer greater returns to investors due to rapid growth but also offer greater exposure to some inherent risks due to their status.
The economies of China and India are considered to be the largest emerging markets.
The 10 Big Emerging Markets (BEM) economies are (alphabetically ordered): Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea, and Turkey.
Egypt, Iran, Nigeria, Pakistan, Russia, Saudi Arabia, Taiwan, and Thailand are other major emerging economies.