Mature Economy

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. No results found.
Related Articles
  1. No results found.
comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center