Advanced Economies

What are 'Advanced Economies'

A term used by the International Monetary Fund to describe developed countries. While there is no established numerical convention to determine whether an economy is advanced or not, advanced economies have a high level of gross domestic product per capita, as well as a very significant degree of industrialization.

BREAKING DOWN 'Advanced Economies'

Another metric commonly used to identify advanced economies is the Human Development Index, which combines multiple factors to measure a country's status. As of 2010 the IMF classified 34 nations as advanced economies. These include the United States and Canada in North America, most nations in Europe, Japan and the Asian tigers, as well as Australia and New Zealand.