Development
Emerging Market
Definition
A country transitioning from low-income to middle-income status, with developing institutions, growing financial markets, and rapid economic change.
Explanation
The term was coined by IFC economist Antoine van Agtmael in 1981. Major emerging markets include China, India, Brazil, Mexico, Indonesia, and Turkey. They offer higher growth potential but greater risk than developed markets — currency volatility, political instability, and weaker institutions. MSCI maintains the most widely used EM index.