An emerging market is a country that has some characteristics of a developed market, but does not satisfy standards to be termed a developed market. This includes countries that may become developed markets in the future or were in the past.

The term “frontier market” is used for developing countries with smaller, riskier, or more illiquid capital markets than “emerging”. The economies of China and India are considered to be the largest emerging markets.

Emerging markets, 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. Leaders of developing countries want to create a better quality of life for their people. They are rapidly industrialising and adopting a free market or mixed economy.

Emerging markets are important because they drive growth in the global economy.