The Changing Drivers of Emerging-Market Growth

This article aims to demonstrate how emerging-market economies have evolved over time. It is worth starting by looking at how the emerging-market investment backdrop has been transformed over the last two decades.

Emerging markets have come a long way since the early 2000s.


  • infrastructure is predominantly in place (including the widespread availability of high-speed broadband)
  • technology is advanced
  • consumers are wealthier.

The confluence of these factors has resulted in changing consumer behaviours, greater consumer resilience and new categories of consumption, which have driven the rapid development of consumer-facing services industries in emerging markets.

The same three elements also make emerging markets less dependent on global-demand dynamics than they may have been historically, and allow for emerging-market growth to be more internally driven, and consumer-led, in the future.

Against this backdrop, we see significant opportunities from the changing drivers of emerging-market growth.

Furthermore, we anticipate that the Covid-19 pandemic will accelerate the technology-driven shifts that we have been seeing in recent years, and highlight the relative resilience of certain emerging markets, especially China, in the current environment.