GROWTH MARKETS

Growth Markets

Open an Account
Growth Markets are some of the world’s most dynamic and fast-growing economies.  Some of these markets are already transforming the global economy; others offer the potential for significant growth in the coming decades.  Here, we offer some insights into the power of the Growth Markets from three perspectives: business, macroeconomic, and economic empowerment.

EAGLEs is a grouping acronym created in late 2010 by BBVA Research to identify all emerging economies, whose expected contribution to world economic growth in the next ten years is expected to be larger than the average of the G6 economies (G7 excluding the U.S.). This is a dynamic concept where country members can change over time according to their forecasted performance relative to developed economies. The membership of the EAGLEs is subjected to a yearly revision and can change according to their forecasted economic performances relative to developed economies. The membership of the EAGLEs is subjected to a yearly revision and can change according to the forecasted economic performances.

As world economic growth rotates from developed to developing countries there has been increasing interest in identifying emerging markets that will become global leaders, as well as increasing the lobbying of some countries to be included in the BRIC definition. However, many economists have argued that the BRIC concept (Brazil, Russia, India and China) is outdated and have proposed alternative definitions. The EAGLEs concept is similar to other proposals in going beyond BRICs (such as the CIVETS, Next 11 or 7 percent club) but its methodology differs from others’ in several ways:

  • It gives less relevance to economic size and population, which may be misleading.
  • It focuses on the Incremental GDP (IGDP) economies will generate, instead of paying attention to the current or expected size of their GDP. This creates a situation where having big size or a high growth rate is not enough on its own to be a key global player. It is a combination of both that really matters.
  • The cut-off is explicit. In order to become an EAGLE member, each country’s expected Incremental GDP in the next 10 years needs to be greater than the one anticipated for the average of the G6 economies, G7 excluding the U.S.
  • It is not a closed group and the concept is not linked to an acronym formed by a given set of countries.
  • The results are based on a shorter horizon – 10 years – than the ones considered in other cases, ranging from 20 to 50 years.

Open an Account

  • No categories
Asset Allocation

Asset Allocation

Even if you are new to investing, you may already know some ...
Bond Duration

Bond Duration

Understanding Duration Duration is one of the most important measurements to consider ...
Creating the Proper Mix

Creating the Proper Mix

Equities Globalization has driven up correlations across style boxes and securities when ...
Dollar Cost Averaging

Dollar Cost Averaging

Dollar cost averaging is a strategy in which you invest a fixed ...
Growth vs Value Investments

Growth vs Value Investments

Growth vs Value Investments
International Markets

International Markets

Investment opportunities exist all around the globe. The most successful US companies ...
Investing and Taxes

Investing and Taxes

If there’s one certainty in investing, it’s taxes. Everyone pays them, and ...
Municipal Bonds

Municipal Bonds

What Is a Municipal Bond? Municipal bonds are debt obligations issued by ...