Emerging Economies

Definition

Emerging economies refer to countries that are transitioning from being underdeveloped or developing nations towards becoming more industrialized with higher levels of economic output. These countries typically experience rapid economic growth but may still face socio-economic challenges.

Related terms

BRICS Countries: BRICS stands for Brazil, Russia, India, China, and South Africa - a group of five major emerging economies. These countries have significant influence on regional and global affairs due to their large populations, economic potential, and geopolitical importance.

Informal Economy: The informal economy refers to economic activities that are not regulated or protected by the government. This sector often includes street vendors, small-scale businesses, and unregistered workers. Emerging economies may have a significant portion of their workforce engaged in the informal economy.

Foreign Direct Investment (FDI): Foreign direct investment is when a company from one country invests in another country's economy by establishing operations or acquiring assets there. FDI plays a crucial role in boosting economic growth and development in emerging economies by providing capital, technology transfer, and job opportunities.