Greece reclassified to 'emerging market' from developed

A major fund manager has reclassified Greece from a developed to an emerging market, in an unprecedented move reflecting the "unfortunate economic tailspin" of the Greek economy, which has threatened the future of the euro.

Russell Investments, which advises funds with $2.4 trillion (£1.6 trillion) in assets, said the Greek economy has been a "world concern" since it revealed unsustainable levels of public debt in 2009.

The American-based company said Greece, which Russell designated as a developed market in 2001, has been on a path towards reclassification as an emerging market since 2010, having failed Russell's operational and macro risk tests, including per-capita income, total market capitalisation and the level of trading volume, which determine the economic health and status of countries.

Read the rest here.