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Economics vocabulary · Development and Inequality

Emerging market

Meaning in economics, with examples

nounCommon term

In economics, emerging market means: A middle-income economy that is growing and industrialising quickly and opening up to foreign trade and investment, such as Brazil, India or Türkiye.

In Turkish: gelişmekte olan piyasa, yükselen piyasa, gelişmekte olan ekonomi

How it is used

Popular with investors and the financial media, often shortened to EM. Emerging markets are seen as offering higher growth but also higher risk, so their currencies and bonds often move together when global conditions change.

Example sentences

  1. Emerging market currencies fell after US interest rates rose.

  2. Investors are moving money back into emerging markets as global risk appetite improves.

Common collocations

  • emerging market currencies
  • emerging market economies
  • emerging market bonds
  • invest in emerging markets
  • developing countryA country with a lower average income, less industrial output and weaker infrastructure than the rich industrialised countries.
  • foreign direct investmentInvestment by a company from one country that gives it a lasting interest and control in a business in another country, such as building a factory.
  • exchange rateThe price of one currency expressed in another, for example how many Turkish lira you need to buy one US dollar or one euro.
  • current account deficitA shortfall that arises when a country pays more to the rest of the world for goods, services, income and transfers than it receives.

More terms: Development and Inequality

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This page explains English vocabulary for learners. It is not financial advice.