Emerging markets projections for 2026

In 2026, emerging markets will be the focus of investors' attention, given their rapid economic growth and rich potential

With just a few days left in 2025, emerging markets remain the focus of investors’ attention, who see significant economic potential in these subregions.

Focus Economics analysts have studied the situation in each group of countries, identifying some of the trends that will characterize them, at least at the beginning of 2026.

  • Asia-Pacific: the region will remain one of the fastest growing economically, driven by sectors such as tourism, information technology and electronics, as well as business-friendly policies, high levels of education, and still robust population growth.
  • Latin America: It is likely to remain the slowest-growing emerging market next year, due in part to its relatively high GDP per capita. This “reduces the scope for rapid convergence growth.” Political instability, weak education systems, corruption, violence, and a limited presence in high-growth sectors will persist in the region.
  • Sub-Saharan Africa: This market is projected to surpass Asia-Pacific as the fastest-growing region globally, with sustained growth of 4.1 %. It will be marked by the world’s fastest population growth rate. As a result, annual growth is expected to reach 2.4 % by 2026, impacting regional output per capita.
  • Middle East and North Africa: The Middle East and North Africa (MENA) axis will experience rapid expansion in 2026, driven by increased OPEC oil production quotas.
  • Eastern Europe and Central Asia: According to analysts, this will be the second slowest-growing emerging market region in 2026, similar to Latin America, due in part to the fact that “many Eastern European economies — especially those belonging to the EU — are converging or have already converged toward GDP per capita levels of developed economies, leaving less room for convergence growth.” Furthermore, more moderate oil and gas prices compared to 2025 could become a drawback by limiting public spending in energy-exporting countries.

M.Pino

Source: focuseconomics

(Reference image source: Kyle Glenn on Unsplash)

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