Looking back, the decade between 2000 and 2009 marked the glory years for emerging markets.
Investors were making a mint in the stock markets. Emerging giants India and China even hit economic growth rates above 10% per year.
Emerging markets as a whole were growing an average of 4.5% faster than rich countries. That was enough to push their share of gross domestic product (GDP) from just over a third to nearly half.
Throw those numbers into a spreadsheet, and you’d find that the pace of growth was enough for the average income per person to converge to U.S. levels in a scant 30 years — a blink of an historical eye.
“Convergence” with the rich world was inevitable.
Read more about the rise and fall of emerging markets at Eagle Daily Investor.