What is 'EAGLES Investing'

EAGLES is an acronym introduced by Spanish bank BBVA in 2010 to describe the emerging and growth-leading economies of Korea, Indonesia, Mexico, Turkey, Egypt and Taiwan along with the BRIC countries Brazil, Russia, India, and China. BBVA expected these countries to generate 50% of the global economic growth through 2020, whereas it expected the G-7 countries of France, Germany, the United States, Canada, Italy, Japan, and the United Kingdom to generate just 14%.

BREAKING DOWN 'EAGLES Investing'

In contrast to the BRIC acronym, which represents specific countries, the EAGLE acronym represents a type of economy, and thus allows for the adding and dropping of countries as economic conditions evolve. BBVA anticipated that Nigeria, Poland, South Africa, Thailand, Colombia, Vietnam, Bangladesh, Malaysia, Argentina, Peru, and the Philippines could join the EAGLEs as their economies develop further.

The Idea Behind EAGLES

According to the bank's methodology, "The BBVA EAGLEs are defined as those emerging economies contributing to world growth more than the average of the G-6 countries in the next ten years. The BBVA Nest is formed of those emerging economies contributing to world growth more than the average of the non-G7 developed economies which have a GDP of over $100 billion PPP-adjusted but below the EAGLEs threshold."

As of May 2018, the EAGLE countries included: Korea, Spain, Australia, Taiwan, the Netherlands, Belgium, Sweden, Hong Kong, Switzerland, Austria, Singapore, Czech Republic, Greece, Norway, Israel, Portugal, Denmark, Finland, Ireland, New Zealand, and Slovakia.

Other factors come into play when deciding if a country should make the list, the bank stated. "We reference our sample of emerging countries to the IMF grouping of emerging and developing economies included in the World Economic Outlook. We choose this classification as it is provided by an international organization, leaving aside considerations by private institutions such as investment banks (or ourselves). In addition, the choice of the IMF is consistent with the use of their projections for those countries that we do not cover in depth at BBVA Research."

An emerging market economy is a nation's economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets, and the existence of some form of market exchange and regulatory body. Emerging markets are not as advanced as developed countries, but maintain economies and infrastructures that are more advanced than frontier market countries.

Emerging markets generally do not have the level of market efficiency and strict standards in accounting and securities regulation to be on par with advanced economies (such as the United States, Europe, and Japan), but emerging markets do typically have a physical financial infrastructure, including banks, a stock exchange, and a unified currency.

RELATED TERMS
  1. Turkey, Indonesia, Mexico, Philippines ...

    TIMP stands for Turkey, Indonesia, Mexico and Philippines. It ...
  2. MSCI BRIC Index

    The MSCI BRIC Index is an index measuring the equity market performance ...
  3. MINTs (Mexico, Indonesia, Nigeria, ...

    Mint is an acronym coined by major investment firm Fidelity in ...
  4. Brazil, Russia, India, China And ...

    Brazil, Russia, India, China and South Africa (BRICS) is an acronym ...
  5. Brazil, Russia, India and China ...

    BRIC (Brazil, Russia, India and China) refers to the idea that ...
  6. Emerging Market ETF

    An emerging market ETF tracks the performance of a group of stocks ...
Related Articles
  1. Financial Advisor

    These Will Be the World's Top Economies in 2020

    Discover the current economic forces that are anticipated to significantly shift the landscape of the world's most powerful economies over the next decade.
  2. Investing

    Time to Add Emerging Markets to Your Portfolio?

    Now that emerging markets are out of favor, is it time to add them to your portfolio?
  3. Insights

    Four Emerging Markets Economies Poised for Growth

    Which emerging market economies will soon make the leap to a developed economy? Here are four to watch.
  4. Investing

    Performance Review: Emerging Markets Equities in 2015

    Find out why emerging markets struggled in 2015 and why a half-decade long trend of poor returns is proving optimistic growth investors wrong.
  5. Financial Advisor

    Keep an Eye on These Emerging Economies

    Emerging markets have been hammered lately, but these three countries (and their large and young populations) are worth monitoring.
  6. Investing

    Top 3 Emerging Markets ETFs (VWO, EEM)

    Discover some of the most popular and best performing exchange traded funds that investors utilize to obtain easy exposure to emerging markets.
  7. Investing

    Should You Invest In Emerging Markets?

    Emerging markets are risky, but the rewards they can create make them a worthy addition to any portfolio.
  8. Insights

    Top 25 Developed and Developing Countries

    The difference between developed and developing countries, along with a list of the status of 25 nations around the world.
  9. Managing Wealth

    Evaluating country risk for international investing

    Find out how investing overseas begins with determining the risk of the country's investment climate.
  10. Investing

    SGENX: First Eagle Global Fund Top Holdings Analysis

    Learn about the First Eagle Global Class A mutual fund, including details about the fund's asset allocation and an analysis of its top five portfolio holdings.
RELATED FAQS
  1. Is Mexico an emerging market economy?

    Learn the difference between a developed economy and an emerging market economy, and understand why Mexico is an emerging ... Read Answer >>
  2. What is a BRIC nation?

    BRIC is an acronym for the combined economies of Brazil, Russia, India and China. Read Answer >>
  3. The Difference Between the International Monetary Fund and the World Bank

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ... Read Answer >>
  4. Which countries are most productive in terms of GDP?

    Countries around the world constantly compete with one another to be the most innovative and productive. Read to see which ... Read Answer >>
  5. What indicators are used in exchange rate forecasting?

    Learn what economic indicators are most widely used to forecast a country’s exchange rate and how various foreign exchange ... Read Answer >>
  6. What are some examples of free market economies?

    In a free market economy, the law of supply and demand, rather than a central government, regulates production and labor. ... Read Answer >>
Trading Center