Greece to be redefined an 'emerging market'
Sunday 17 June 2012
Greece is poised to fall out of the leading group of developed economies and be redefined as an emerging market, a leading fund manager has warned.
Dr Mark Mobius, the executive chairman of Templeton investments who has been investing in emerging markets for 40 years, says on leaving the euro, Greece – which has seen its economy contract 20 per cent in three years – would no longer be considered a developed economy.
"Greece on exiting the euro, by most parameters, would become an emerging market, particularly as the average annual per capita income could fall below $13,000 (£8,294), the usual cut-off point for emerging market status."
Dr Mobius added that the other members of the PIGS club of economies – Portugal, Ireland and Spain – could also be deemed emerging markets if they too were to exit the euro and see a heavy devaluation in their currencies.
"It has happened before that developed economies become emerging. The most recent example is Argentina which was wealthy but through a series of crises no longer is."
Have shock jocks gone too far?
Former Google exec says he has 100,000 emails showing how 'immoral' company avoids paying UK tax
Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
British man confesses to slitting two children's throats in Lyon flat
'Swivel-gate': David Cameron goes to war with the press over 'swivel-eyed loons' slur
- 1 Asteroid nine times the size of the QE2 liner to sail pass Earth
- 2 Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
- 3 British business: We need to stay in the EU - or risk losing up to £92bn a year
- 4 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 5 It’s official: thanks to Stephen Hawking's Israel boycott, anti-Semitism is no more
BMF is the UK’s biggest and best loved outdoor fitness classes
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Win anything from gadgets to five-star holidays on our competitions and offers page.
iJobs Money & Business
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...
£450 - £500 per day: Orgtel: Sourcing Manager - Banking - London - Up to £500p...
To be discussed at interview.: Queen Elizabeth's School: An experienced and ef...
£294.05 - £330.92 per day + 150 per day travel and accommodation: Orgtel: A le...