Emerging markets experience resurgence
Date
8/28/2024 5:02:37 AM
(MENAFN) Emerging markets are experiencing a powerful resurgence, growing at rates not observed in the past 15 years and outpacing advanced economies, including the United States. This trend marks a significant turnaround from the previous decade, which was characterized by economic struggles for many developing nations. In the early 2000s, emerging markets saw a broad-based boom that drew billions of dollars in investment, an era described by Fareed Zakaria as the "rise of the rest." Today, a similar wave of growth is unfolding, although it has not yet received widespread recognition from investors and analysts.
Recent data shows that the share of emerging economies with per capita GDP growth higher than that of the United States is projected to rise from 48% over the past five years to 88% in the next five. This rapid growth rate mirrors the peak performance of emerging markets in the first decade of this century, suggesting a robust recovery and a potentially transformative period ahead. Unlike the early 2000s, when the rise of China, a surge in commodity prices, and supportive monetary policies from Western central banks fueled growth, today's emerging market boom is unfolding under different conditions. The dynamics driving this resurgence are more diversified, with countries leveraging technological advancements, domestic reforms, and new trade partnerships to spur economic growth.
This renewed expansion in emerging markets has caught many by surprise, especially after a decade marked by predictions of their decline. Observers had previously believed that the rapid rise of China would ensure continued prosperity across the developing world. However, these expectations were dashed in the years that followed, as emerging economies faced significant challenges while the United States thrived. The current recovery, therefore, represents not just a return to growth but a reconfiguration of global economic power, with emerging markets poised to play a more prominent role in shaping the future economic landscape.
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