Emerging Markets vs Developed Economies

Emerging markets continue to demonstrate stronger growth trajectories, typically expanding at rates above 4% annually, while developed economies grow at a more modest 2-2.5%, though emerging markets carry elevated volatility, inflation pressures, and regulatory risks. Developed economies provide investors with stability, established infrastructure, and lower volatility, but face structural headwinds from aging populations and slower expansion. The choice between them depends on risk tolerance and growth objectives.