Emerging Markets & the convergence theory

Emerging market economies expected to slow after producing 3/4 of global growth in recent years.

The strong growth helped narrow the gap in income per head between emerging markets and the developed world.

This, say some emerging markets experts, is the actualization of the convergence theory. The theory is outlines the same societal patterns will emerging as nations transition from developing and emerging markets to being highly industrialized.

The below chart shows emerging markets GDP in relation to US GDP.

EmergingMarketBanking

The below chart shows the dirt relationship between per capita income and economic growth, with emerging markets growing at a faster clip than developed nations.

EmergingMarketBanking

Read more at the Financial Times.