Topic / economics

Emerging Markets

Fast-changing economies where growth opportunities interact with financial, institutional and external risks.

Core exam brief

Know the idea before you use the evidence.

Definition

Emerging markets are economies undergoing rapid development and integration into global trade and financial markets, but with less mature institutions or markets than advanced economies.

Chain of analysis

Capital inflows and trade can accelerate investment and growth, while shifts in global rates, commodity prices or confidence can trigger currency and financing pressure.

Evaluation trigger

Avoid treating emerging economies as one group; compare institutions, reserves, debt, demographics, export structure and exposure to foreign capital.

Analysis and example bank

29 July 2026 · United Arab Emirates

15-marker25-marker

UAE keeps Base Rate at 3.65% under the dirham's US dollar peg

On 29 July 2026, the Central Bank of the UAE kept its Base Rate at 3.65% after the US Federal Reserve left its Interest on Reserve Balances rate unchanged. The decision is a direct exchange-rate case because the Base Rate is anchored to the Fed under the UAE's fixed dirham-dollar regime. CBUAE's operating framework also states that it intervenes in the foreign-exchange market around USD/AED 3.672-3.673 to maintain the peg.

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Dubai and its coastline photographed from the International Space Station

11 June 2026 · Developing economies / Global

15-marker25-marker

World Bank forecasts developing-economy growth slowing to 3.6% in 2026

The World Bank's June 2026 Global Economic Prospects forecast developing-economy growth slowing from 4.4% in 2025 to 3.6% in 2026. More importantly for A-Level evaluation, the Bank said developing economies excluding China and India are approaching a decade with almost no progress in narrowing the per-capita income gap with advanced economies. This makes the release a strong growth-versus-development case.

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The HM Revenue and Customs building seen from Parliament Square in London