Mature Economy

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.

RELATED TERMS
  1. Current Maturity

    The interval between the present date and the maturity date of ...
  2. Term To Maturity

    The remaining life of a financial instrument. In bonds, it is ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security ...
  4. Accretion of Discount

    The increase in the value of a discounted instrument as time ...
  5. Held To Maturity Security

    Accounting standards necessitate that companies classify any ...
  6. Yield To Average Life

    The yield on a fixed-income security when the average maturity ...
Related Articles
  1. Markets

    How Do I Calculate Yield To Maturity Of A Zero Coupon Bond?

    Yield to maturity is a basic investing concept used by investors to compare bonds of different coupons and times until maturity.
  2. Markets

    4 Global Economic Issues of an Aging Population

    Discover why dramatic increases in life expectancy is creating significant socioeconomic challenges for many advanced industrialized nations.
  3. Markets

    These Will Be the World's Top Economies in 2020

    Discover the current economic forces that are anticipated to significantly shift the landscape of the world's most powerful economies over the next decade.
  4. Managing Wealth

    What’s the Difference Between Duration & Maturity?

    We look at the meaning of two terms that often get confused, duration and maturity, to set the record straight.
  5. Markets

    Why Commodities Aren't to Blame for Market Malaise

    Commodities are taking the brunt of the blame for poor investment performance. Are they the real villain?
  6. Managing Wealth

    How To Evaluate Bond Performance

    Learn about how investors should evaluate bond performance. See how the maturity of a bond can impact its exposure to interest rate risk.
  7. Markets

    How Automatic Stabilizers Work

    Many economists claim that automatic stabilizers only work in the short term and question their effect on government spending. In truth, automatic stabilizers do not always have enough impact ...
  8. Markets

    Which Countries Will Drive Global Growth in 2016?

    Given the volatility that has already shaken the global economy, the world's largest economies will be leaned on to stimulate growth in 2016
  9. Markets

    3 Reasons to Invest in Asia's Emerging Markets

    Emerging markets in Asia aren't on the rise at the moment, but they're best days are likely to be in the future. Here's why.
  10. Markets

    5 Reasons Why Easy Growth Is Behind Us

    Explore the five reasons why easy global growth is behind us, as stated by Mary Meeker, and discover where the biggest opportunities exist in the changing economy.
RELATED FAQS
  1. What recommendation should be advised to investors when interest rates rise?

    Given a default-free term structure in U.S Government Bond 10-year, what should an investor do when the interest rates rises ... Read Answer >>
  2. How does the current interest rate risk affect bondholders in the US?

  3. What are the maturity terms for Treasury bonds?

    Learn how treasury bonds pay interest, when they reach maturity and the differences between terms for treasury bonds and ... Read Answer >>
  4. Is Japan an emerging market economy?

    Discover whether Japan is an emerging market economy. Emerging markets have high levels of risk and reward due to their growth ... Read Answer >>
  5. What is the difference between yield to maturity and the yield to call?

    Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing ... Read Answer >>
  6. What can demographics tell us about present and future consumption trends and economic ...

    Learn what demographics reveals about present and future consumption trends and economic cycles. Demographics is the study ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center