The emerging force

When the curtain fell on 2006, a statement was made on the status of the global economy: emerging markets are the rising stars, and will dominate the world's future economic direction. According to a December report by the Economist, at the end of 2005 the gross domestic product of emerging markets (on a purchasing power parity basis) accounted for nearly 50% of the global total. Drawing on statistics both from the International Monetary Fund and Morgan Stanley Capital International, the Economist revealed that close to 70% of the total global foreign exchange reserves are being held in emerging markets' vaults (See Figure 1). As emerging markets assume an increasingly pronounced profile on the global economic stage, Asia is the leader, accounting for more than 52% of the MSCI Emerging Markets index. The largest emerging market block on the globe, Asia's rising economic prowess has added new dimensions to the region's...