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Financial Services in Emerging Economies 2011

Financial Services in Emerging Economies 2011

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Growth in the largest emerging economies – led by Brazil, China and India – is being supported by rapid expansion of domestic and international financial markets. This report reviews a dozen such markets.

Nominal GDP in emerging economies almost doubled, rising 97% between 2005 and 2010. The rate of growth in most financial markets in emerging economies exceeded growth in GDP during this period (Chart 1). Those markets to have roughly doubled in size include domestic bonds, insurance premiums and external borrowing from international banks. Other markets to have risen about threefold were bank assets, marine insurance premiums, mutual funds and equity market capitalisation; while contracts traded on derivatives exchanges have increased fivefold. Amongst the main markets, only pension assets and international bonds have grown more slowly than GDP: pension assets up by a third and international bonds up by over three quarters.