Question

Identify what is an emerging economy

Answer 1

There are different types of economies i..e Developed, Developing and underdeveloped.

Now US comes under the definition of Developed economy. This is because the systems and industries and the standard of living in US is already developed. There is no major shift that is required in terms of streamlining the economy.

Underdeveloped economies are where they are still adhered to primitive ways of living. Here the industrialization is very less or minimal. They don't have access to the advanced world and need to struggle for basic necessities. This is the underdeveloped economy.

A developing economy can be considered as an emerging economy depending on the pace of the development. If micro-economically and macro-economically the country seems to be growing really fast as compared the pace in the rest of the world, then the economy can be said to be an emerging economy. Thus not every developing country is an emerging economy but an emerging economy is definitely and most probably a developing country. This cannot be said with 100% precision but broadly this can be defined.

In an emerging economy all spheres of life and country i.e. industries, defence, infrastructure, business, financial structure and stock markets, health etc. in all spheres there is a growth that is visible. Thus this is what is meant by an emerging economy.