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.