Comparing Emerging and Advanced Markets

CHAPTER 3

Advanced Versus Emerging Markets

Global Economic Prospects

Overview

Advanced economies and emerging markets find themselves in different economic and political cycles, which are causing the global recovery to ascend at two different speeds. In 2011, the IMF estimated the global economy was growing at 4.4 percent, while advanced economies were growing at 2.4 percent and emerging markets at 6.5 percent. However, according to most recent data (2014), the IMF predicts a slowdown in growth, expecting the global economy to grow at 3.6 percent (3.9 percent in 2015), while advanced economies will grow at 2.25 percent in 2014–2015, and emerging markets at 5 percent (5 ¼ percent for 2015).

The global economic growth trend is changing significantly. ...