The global landscape is changing and so are global organizations. Economic forecasts show developed markets experiencing slower growth, with global GDP projected to expand at just 2.9% in 2025, down from 3.3% in 2024. Meanwhile, emerging markets are demonstrating resilience and accelerated digital adoption that positions them as attractive destinations for forward-thinking organizations.
Inflation in legacy markets like the United States remains above target at 2.4% as of May 2025, while new tariffs have added an estimated 1.5% to price increases. These economic pressures are prompting organizations to diversify their operations and seek markets with less overhead.
Digital transformation has emerged as the great equalizer for emerging markets. Global investment in digital transformation is projected to reach $4 trillion by 2027, with emerging regions experiencing rapid technological leapfrogging. Countries across Southeast Asia, Africa, and Latin America are building robust digital infrastructure that enables seamless remote work, e-commerce, and fintech solutions, creating new and exciting opportunities for global talent acquisition and market entry.
The convergence of these trends creates a compelling case for strategic global expansion into emerging markets. Each of these markets offers unique advantages for companies ready to capitalize on this shifting global economic landscape.
What defines a top emerging market in 2025?
The traditional definition of emerging markets has evolved far beyond simple GDP growth metrics. Modern organizations evaluate these economies through a multifaceted lens that encompasses technological readiness, talent accessibility, and operational feasibility.
- Digital infrastructure. Countries experiencing rapid digital transformation demonstrate the technological foundation necessary for global business operations. Southeast Asia’s internet economy, projected to reach $600 billion by 2030, exemplifies how robust digital ecosystems can leapfrog traditional development stages.
- Startup ecosystem maturity. Thriving entrepreneurial environments signal the capacity for innovation and the regulatory frameworks that support business formation and growth. This often correlates with educated workforces, the availability of venture capital, and government policies that encourage foreign investment.
- Workforce education and remote work readiness. Organizations prioritize markets where talent pools demonstrate both technical competencies and cultural adaptability for distributed work models. Countries with strong educational infrastructure, English proficiency, and established remote work practices offer compelling advantages for global teams.
- Ease of doing business. Modern emerging markets distinguish themselves through streamlined business registration processes, intellectual property protections, and stable governments. Regulatory transparency, bureaucratic efficiency, and legal protections reduce operational risks for international companies.
- Employer of record (EOR) compatibility. Markets with clear employment regulations, established payroll systems, and cooperative tax authorities enable companies to hire talent quickly and compliantly.
12 emerging markets to watch in 2025
Certain emerging markets cater to specific global expansion strategies, whether it’s scaling early-stage startup growth or advancing an established enterprise. Depending on the industry, talent, and target market, one or more of these emerging economies represent the most compelling opportunities for expansion for your business.
Vietnam
Fueled by increased domestic demand and continued export strength, Vietnam’s GDP growth is projected to be 6.0% in 2026. The country’s tech outsourcing sector has become a cornerstone of economic development, supported by government incentives that attract foreign direct investment (FDI) of approximately $25 billion annually. Backed by competitive labor costs and improving digital infrastructure, Vietnam’s strategic position in global supply chains makes it ideal for companies seeking to expand manufacturing and technology services.
Kenya
Kenya’s startup ecosystem raised $638 million in 2024, representing 29% of Africa’s total funding, while the government has committed KES 152 billion (approximately US$1.2 billion) to a national AI strategy through 2030. Kenya’s English-speaking workforce and youthful demographics create exceptional talent availability, particularly in fintech, agritech, and climate technology sectors. The country’s strong digital infrastructure, anchored by innovations like M-PESA, provides a solid foundation for remote work and digital business operations.
Colombia
A strategic geographic location and competitive operational costs have made Colombia a premier nearshoring destination, particularly for North American companies seeking to optimize supply chains. The country offers flexible employment laws and streamlined registration processes. Colombia’s skilled workforce, favorable time zone, and cultural compatibility, creates an ideal environment for customer service, software development, and back-office operations.
Poland
Poland’s IT workforce has grown from 400,000 professionals in 2015 to an estimated 600,000 as of 2025, making it one of Europe’s largest tech talent pools. As an EU member, Poland offers regulatory stability and market access while maintaining competitive labor costs. The country’s strong educational system and high English proficiency levels support diverse business functions, from software development to financial services.
Philippines
The business process outsourcing (BPO) sector generated $38 billion in 2024 and is projected to surpass $40 billion in 2025, employing 1.82 million workers across customer experience, IT, and back-office functions. Filipino professionals consistently demonstrate exceptional communication skills and cultural adaptability, particularly in the North American and Australian markets. The sector’s evolution toward higher-value services, including AI integration and advanced analytics, positions the Philippines as one of the best countries to hire remote workers.
Turkey
With a strategic position between Europe and Asia, Turkey offers access to European, Middle Eastern, North American, and Central Asian markets. With the world’s 17th-largest economy, the country’s 33.3 million-strong labor force remains resilient with unemployment at 8.4%. Strong government initiatives promote the renewable energy and technology sectors. Turkey’s streamlined business incorporation processes and favorable FDI policies create an attractive environment for manufacturing, technology, and service sector expansion.
South Africa
The fintech sector is experiencing rapid growth, driven by progressive regulations and strong digital infrastructure that positions the country as a gateway to sub-Saharan Africa. Government support for fintech development, combined with established banking systems and mobile technology adoption, creates opportunities for financial services expansion. The developed business environment and regulatory stability of South Africa provide confidence for long-term strategic investments.
Mexico
Manufacturing strength, particularly in the automotive and electronics sectors, attracts foreign investment, with approximately 495 new companies entering the market between 2024 and 2025. The country’s proximity to the United States provides significant nearshoring advantages, though recent tariffs have created some uncertainty. Mexico’s established industrial base and skilled workforce make it an attractive destination for companies seeking to serve North American markets.
Indonesia
Young demographics and a rapid digital transformation create compelling opportunities in the world’s fourth-most populous country. The government’s focus on digital infrastructure development and e-commerce growth supports business expansion across multiple sectors. Indonesia’s strategic location in Southeast Asia and growing middle class provide access to both domestic and regional markets.
Brazil
Despite regulatory complexity, Brazil remains Latin America’s largest market with significant opportunities for patient investors willing to navigate compliance requirements. Brazil boasts an established industrial base and a large consumer market, offering scale advantages for companies seeking regional expansion. The country’s skilled workforce and technological capabilities support diverse business functions, though regulatory compliance requires careful attention and local expertise.
India
India’s massive talent pool and established IT services sector continue to attract global investment, while government initiatives promote digital transformation and startup ecosystem development. The country’s English-speaking workforce and competitive costs provide advantages for technology services, customer support, and back-office operations. India’s improving digital infrastructure and expanding middle class create opportunities across multiple sectors, though regulatory environments vary significantly by state.
Thailand
Thailand’s stable political environment and business-friendly policies have established it as a regional hub for Southeast Asian operations. The country boasts a robust digital infrastructure, a skilled workforce, and a strategic geographic location that facilitates access to ASEAN markets. Thailand has an established manufacturing base and a growing service sector that offers diverse opportunities for international expansion, supported by government incentives for foreign investment.
How to strategically enter emerging markets
Successful market entry requires a methodical approach that balances speed with compliance, local adaptation with operational efficiency.
- Partner with an employer of record (EOR) to minimize compliance risks. EORs provide extensive knowledge of local employment laws and assume legal responsibility for compliance, reducing the risk of fines and legal disputes that can derail market entry.
- Conduct comprehensive market research with established local partners. Local research partners overcome language and cultural barriers while providing valuable insights into consumer behavior, regulatory requirements, and market dynamics that external firms often overlook.
- Adapt hiring and compensation strategies to local market conditions. Compensation strategies must account for local salary benchmarks, cost of living variations, and cultural preferences for benefits packages to attract and retain top talent.
- Localize onboarding, payroll, and benefits delivery to regional standards. Effective localization involves providing onboarding materials in multiple languages, ensuring compliance with regional labor laws, and offering benefits packages that meet local expectations and standards.
- Establish local management presence for operational effectiveness. Hiring local managers provides “boots on the ground” leadership that can navigate cultural differences, overcome language barriers, and manage relationships with customers and vendors more effectively than remote management.
- Leverage local networks and established business relationships. Strategic partnerships with local entities provide access to established networks, regulatory knowledge, and market credibility that can accelerate market penetration.
What are the barriers to expanding into emerging markets?
Emerging economies offer tremendous growth opportunities, but require navigating some pitfalls.
Infrastructure gaps
Physical and digital infrastructure deficiencies represent one of the most persistent barriers to scaling operations in emerging markets. “Numerous developing economies encounter infrastructural issues, like inadequate roads, inconsistent electrical supply, and restricted internet access,” says Junaid Mahesar, CEO and co-founder of 3xA and Forbes Councils member. “This can hinder firms’ operational efficiency, escalating expenses and generating logistical challenges.”
Political instability and governance hurdles
Regulatory frameworks often change rapidly with shifts in government leadership, making compliance a challenge. Geopolitical risks, including policy instability and economic inequality, can trigger sudden disruptions that make it difficult for companies to maintain stable operations.
Workforce skills deficiency
Many emerging markets struggle with educational foundations, as workers often lack essential technical skills and the digital literacy needed for modern business operations. The skills gap extends beyond basic education to include deficits in specialized training and advanced professional capabilities required for complex business functions.
Foreign exchange concerns
“Numerous emerging markets exhibit currency volatility, and certain jurisdictions impose stringent regulations on repatriating profits to one’s home nation,” cautions Mahesar. “Both of these can adversely affect your profitability if not adequately managed,” he adds. Companies must develop sophisticated hedging strategies and financial management approaches to navigate these currency risks while maintaining operational stability across multiple markets.
Pebl makes it easy to expand into emerging markets
So, you’ve narrowed down your target market… what’s the next step? With Pebl’s Employer of Record service, we operate as the legal entity in the emerging market of your choice (we already have experts in 185+ countries worldwide). We handle onboarding, payroll, compliance, and keep an eye on all those pitfalls mentioned above. You get to enter your new market quickly and seamlessly and get to the fun part—expanding. Let’s talk about how entering a top emerging market doesn’t need to be a barrier to expanding your business.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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Topic:
Global Growth
