Washington, D.C., September 9, 2014 - Emerging market GDP growth is on track to grow at a 3.9 percent pace in 2014Q3, slightly higher than the 3.5 percent seen in 2014H1 according to the August reading of the Institute of International Finance's new Emerging Market Coincident Indicator (EMCI).

"Growth in emerging markets is gradually recovering from a dismal first half performance," said Charles Collyns, chief economist at the IIF. "However, the pace of growth is still modest, in part reflecting drag from some mature economies, notably the Euro Area, but also home-grown difficulties including political uncertainty in a number of emerging markets."

The IIF introduced the EMCI in the July edition of its Global Economic Monitor. The EMCI is a monthly indicator that gauges quarterly emerging market GDP growth on a real time basis. The EMCI distills a common trend from 41 macroeconomic and financial variables that are highly correlated with emerging market GDP growth. It is published in the second week of each month and its growth rate is designed to match quarterly annualized GDP growth in the respective quarter.

Among the variables that feed into the EMCI, the hard data, notably merchandise trade, continued a modest uptrend. Financial variables were also broadly supportive of growth. Sentiment data, however, softened in August after having risen in prior months.

The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. Within its membership IIF counts commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks. For more information visit www.iif.com.