The Wall Street Journal had an interesting graphic in its monthly mutual funds review section on June 4. The image below demonstrates growth of emerging market countries among global stock markets and more impressively, the amount of the global economy attributed to emerging market countries.
Collectively, the emerging market countries now contribute a larger percentage of global gross domestic product (GDP) than does the United States. The emerging market portion of the global stock market has grown 160% over the past 10 years. These figures make it clear why so many companies are racing to expand their brand in emerging nations, where population is rising quickly and middle class consumerism is also growing.
WHAT IS CONSIDERED AN EMERGING MARKET?
The MSCI Emerging Markets Index covers over 2,700 stocks in 21 countries. The universe of publicly traded emerging market companies spans large, mid and small cap securities.
Some of the markets classified as emerging are actually very mature. Here’s the country breakdown:
Americas — Brazil, Chile, Colombia, Mexico, Peru
Europe, Middle East & Africa — Czech Republic, Egypt, Hungary, Morocco, Poland, Russia, South Africa, Turkey
Asia — China, India, Indonesia, Korea, Malaysia, Phillipines, Taiwan, Thailand
~ Brooks, Hughes & Jones, Partners in Wealth Management, Tacoma, WA