DEFINITION of 'Mature Economy'

A mature economy is the situation where the country's population has stabilized or is in decline, and where the pace of economic growth has also slowed. A population has stabilized or is in decline when the birth rate is equal to or less than the mortality rate. A mature economy is characterized by a decrease in spending on infrastructure, and a relative increase in consumer spending.

BREAKING DOWN 'Mature Economy'

One result of a mature economy is a reduced pressure to create new jobs since the workforce is not increasing. Many of Western Europe's economies are considerably more mature than that of the United States, and are in marked contrast to the faster growing economies of the Far East.

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