Greece to be redefined an 'emerging market'

Julian Knight
Julian Knight is money and property editor for the Independent on Sunday
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."
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