In the 21st century, the rise of emerging economies has become a defining feature of the global landscape. These nations, often referred to as emerging market countries, have been outpacing global benchmarks, transforming economic dynamics, and reshaping political influences worldwide.
According to a 2018 study by McCarthy & Company, 18 out of 71 emerging economies have seen their per capita GDP grow at an average rate exceeding 3.5 percent annually over the past five decades. This impressive growth reflects not only economic advancement but also the potential to revolutionize the global economy.
The BRICS cooperative mechanism—which includes major emerging economies such as Brazil, Russia, India, the Chinese mainland, and South Africa—is a prime example of this shift. The grouping’s growing influence is attracting more nations to join, garnering widespread international attention. The expansion of BRICS symbolizes how emerging economies are disrupting the status quo and fostering a new balance in the world economic landscape.
Emerging economies have significantly contributed to global economic growth. Data from the World Bank indicates that over the past 40 years, the average GDP growth rates of the Chinese mainland and India—the two largest emerging economies—have reached 9.1 percent and 5.9 percent respectively, far surpassing the global average. Their rapid and sustained growth has increased the share of emerging economies in the global economy as a whole.
Compared to developed nations, the economic influence of emerging market countries is rising markedly. From 1990 to 2022, the share of BRICS countries in the world’s GDP increased from 10.43 percent to 25.64 percent. In contrast, the GDP share of major developed economies—the United States, the European Union, and Japan—declined from 53.83 percent in 2008 to 45.32 percent in 2022. This shift underscores the pivotal role of emerging economies in driving global growth.
The potential impact of emerging markets on global growth has tripled since 2000, especially through trade spillovers. A slowdown in productivity in some G20 emerging markets could significantly affect global output. Conversely, accelerated growth in these countries could have positive spillover effects, potentially boosting the world economic growth rate by 0.5 percentage points.
Faster economic growth in emerging markets has also spurred structural transformations, particularly in densely populated developing countries like the Chinese mainland, India, and Brazil. These changes, characterized by rapid industrialization and urbanization, are narrowing gaps between urban and rural development and bridging divides among populations.
Reference(s):
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