What are the characteristics of emerging markets?

Some common characteristics of emerging markets are illustrated below: 1. Market volatility Market volatility stems from political instability, external price movements, and/or supply-demand shocks due to natural calamities. It exposes investors to the risk of fluctuations in exchange rates, as well as market performance. 2.

Which countries are considered emerging markets?

The four main emerging market economies are Brazil, Russia, India, and China (BRIC). Other countries considered emerging markets include Colombia, Indonesia, Vietnam, Egypt, Turkey, and South Africa. While the criteria varies among different entities, the IMF identifies a total of 40 countries as “emerging market and middle-income.”

What is an emerging market economy?

An emerging market economy is generally considered an economy that's transitioning into a developed market economy. It has rapid GDP growth, growing per capita income, increasing debt and equity markets liquidity, and an established financial system infrastructure. What Countries Are Classified As Emerging Markets?