Developed Economy


DEFINITION of 'Developed Economy'

While there is no one, set definition of a developed economy it typically refers to a country with a relatively high level of economic growth and security. Some of the most common criteria for evaluating a country's degree of development are per capita income or gross domestic product (GDP), level of industrialization, general standard of living and the amount of widespread infrastructure. Increasingly other non-economic factors are included in evaluating an economy or country's degree of development, such as the Human Development Index (HDI) which reflects relative degrees of education, literacy and health.

BREAKING DOWN 'Developed Economy'

The most well-known current examples of developed countries include the United States, Canada and most of western Europe, including England and France.

Terms such as "emerging countries," "third world countries" and "developing countries," are commonly used to refer to countries that do not enjoy the same level of economic security, industrialization and growth as developed countries. The United Nations Conference on Trade and Development (UNCTAD) points out that the least developed of the developing countries are "deemed highly disadvantaged in their development process – many of them for geographical reasons – and (face) more than other countries the risk of failing to come out of poverty."

  1. Economy

    Economy is the large set of inter-related economic production ...
  2. Third World

    A phrase commonly used to describe a developing nation, but actually ...
  3. Service Sector

    The portion of the economy that produces intangible goods. According ...
  4. Development Economics

    A branch of economics that focuses on improving the economies ...
  5. Closed Economy

    An economy in which no activity is conducted with outside economies. ...
  6. Poverty

    A state or condition in which a person or community lacks the ...
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  1. Is Canada a developed country?

    Canada is a developed country. Countries that are considered to have developed economies exhibit strength in typical economic ... Read Full Answer >>
  2. Is Germany a developed country?

    Germany is a developed country. A country with a developed economy typically exhibits strong gross domestic product (GDP), ... Read Full Answer >>
  3. Are there critics of the human development index (HDI)?

    The human development index (HDI) assigns numerical values to different countries as a measure of human prosperity. These ... Read Full Answer >>
  4. What telecommunication companies have the largest exposure to emerging markets?

    The telecom companies with the most exposure to emerging markets are usually the ones that are politically favored. More ... Read Full Answer >>
  5. What are the primary risks to understand when investing in the automotive sector?

    Investors in the automotive sector should be aware of strong competition among U.S. and foreign automakers. The U.S. market ... Read Full Answer >>
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