The economy of each country has its typical features and characteristics, with own strengths and weakness. Nevertheless, many international financial and economic institutions provide a classification based on some specific parameters, in order to group countries that share similar economic, financial features and market outlooks. For example many institutions classify countries as developed, emerging and frontier markets on the basis of their economic size, the wealth of the population, the quality and depth of the market, the openness to the foreign investors, the easiness of doing business etc.. Generally, an emerging economy refers to a country that is considered to be in a transitional phase, from the status of developing economy to the status of developed economy. An emerging economy can be defined as an economy displaying the following characteristics:
the purchasing-power-parity (PPP) per capita income is comprised between 10% and 75% of the average developed countries’ per capita income;
a significant economic growth in the recent years, that has narrowed the gap with the developed countries;
institutional transformation and opening to the foreign investors.
The definition of emerging economies is quite wide and includes in the same group countries with different characteristics and at a different stage in the development process. Countries as China, Chile, Mexico and Turkey in fact are generally considered emerging economies but they are more similar to the developed countries than to the other emerging countries standing at an earlier stage.
Some of the most interesting emerging Asian markets include Vietnam, Indonesia and Philippines with positive performance during recent period.
Regarding Vietnam, its key factors are growing exports, rising 20% year on year. Though most significant economic changes seen in Vietnam throughout the year were Manufacturing, Exports and the Disbursed Foreign Direct Investment.
In Indonesia, the major asset which led it into the GDP growth is strengthening both: Investment and Exports. In addition, the the retail sales picked, simultaneously with the growth of export, consumer confidence and manufacturing PMI.
Philippines had as main drivers: Manufacturing, Trade, Real Estate, Renting and Business Activities. Whereas the major contributor to GDP from the expenditure side were also: Household final consumption expenditure, Durable equipment and Government final consumption expenditure.
Emerging markets in Asia are considered the most promising economies of the global development.