A developed country, or advanced country, [3] [4] is a sovereign state that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for evaluating the degree of economic development are the gross domestic product (GDP), gross national product (GNP), the per capita income, level of industrialization, amount of widespread infrastructure and general standard of living. [5] Which criteria are to be used and which countries can be classified as being developed are subjects of debate. Different definitions of developed countries are provided by the International Monetary Fund and the World Bank; moreover, HDI ranking is used to reflect the composite index of life expectancy, education, and income per capita. Another commonly used measure of a developed country is the threshold of GDP (PPP) per capita of at least US$22,000. In 2023, 40 countries fit all four criteria, while an additional 15 countries fit three out of four.
Developed countries have generally more advanced post-industrial economies, meaning the service sector provides more wealth than the industrial sector. They are contrasted with developing countries, which are in the process of industrialisation or are pre-industrial and almost entirely agrarian, some of which might fall into the category of Least Developed Countries. As of 2023 [update] , advanced economies comprise 57.3% of global GDP based on nominal values and 41.1% of global GDP based on purchasing-power parity (PPP) according to the IMF. [6]
Economic criteria have tended to dominate discussions. One such criterion is the income per capita; countries with the high gross domestic product (GDP) per capita would thus be described as developed countries. Another economic criterion is industrialisation; countries in which the tertiary and quaternary sectors of industry dominate would thus be described as developed. More recently, another measure, the Human Development Index (HDI), which combines an economic measure, national income, with other measures, indices for life expectancy and education has become prominent. This criterion would define developed countries as those with a very high (HDI) rating. The index, however, does not take into account several factors, such as the net wealth per capita or the relative quality of goods in a country. This situation tends to lower the ranking of some of the most advanced countries, such as the G7 members and others. [7] [8]
According to the United Nations Statistics Division:
There is no established convention for the designation of "developed" and "developing" countries or areas in the United Nations system. [9]
And it notes that:
The designations "developed" and "developing" are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process. [10]
Nevertheless, the United Nations Conference on Trade and Development considers that this categorization can continue to be applied:
The developed economies broadly comprise Northern America and Europe, Israel, Japan and the Republic of Korea, as well as Australia and New Zealand. [11]
Terms linked to the concept developed country include "advanced country", "industrialized country", "more developed country" (MDC), "more economically developed country" (MEDC), "Global North country", "first world country", and "post-industrial country". The term industrialized country may be somewhat ambiguous, as industrialisation is an ongoing process that is hard to define. The first industrialized country was the United Kingdom, followed by Belgium. Later it spread further to Germany, United States, France and other Western European countries. According to some economists such as Jeffrey Sachs, however, the current divide between the developed and developing world is largely a phenomenon of the 20th century. [12]
Mathis Wackernagel calls the binary labeling of countries as "neither descriptive nor explanatory. It is merely a thoughtless and destructive endorsement of GDP fetish. In reality, there are not two types of countries, but over 200 countries, all faced with the same laws of nature, yet each with unique features." [13]
A 2021 analysis proposes the term emerged to describe markets, economies, or countries that have graduated from emerging market status, but have not yet reached the level equivalent to developed countries. [14] Multinational corporations from these emerging markets present unique patterns of overseas expansion and knowledge acquisition from foreign countries.
The UN HDI is a statistical measure that gauges an economy's level of human development. While there is a strong correlation between having a high HDI score and being a prosperous economy, the UN points out that the HDI accounts for more than income or productivity. Unlike GDP per capita or per capita income, the HDI takes into account how income is turned "into education and health opportunities and therefore into higher levels of human development."
Since 1990, Norway (2001–2006, 2009–2019), Japan (1990–1991 and 1993), Canada (1992 and 1994–2000) and Iceland (2007–2008) have had the highest HDI score.
The following countries in the year 2022 are considered to be of "very high human development": [15]
Rank | Δ | Country or territory | HDI | % annual growth (2010-2022) |
---|---|---|---|---|
1 | Switzerland | 0.967 | 0.24% | |
2 | (1) | Norway | 0.966 | 0.25% |
3 | Iceland | 0.959 | 0.28% | |
4 | (2) | Hong Kong | 0.956 | 0.38% |
5 | (1) | Denmark | 0.952 | 0.35% |
Sweden | 0.38% | |||
7 | (8) | Ireland | 0.950 | 0.38% |
(3) | Germany | 0.19% | ||
9 | (1) | Singapore | 0.949 | 0.25% |
10 | (1) | Netherlands | 0.946 | 0.26% |
(1) | Australia | 0.20% | ||
12 | (2) | Liechtenstein | 0.942 | 0.23% |
(3) | Belgium | 0.26% | ||
Finland | 0.27% | |||
15 | (3) | United Kingdom | 0.940 | 0.24% |
16 | (7) | New Zealand | 0.939 | 0.13% |
17 | (19) | United Arab Emirates | 0.937 | 1.04% |
18 | (5) | Canada | 0.935 | 0.22% |
19 | (3) | South Korea | 0.929 | 0.36% |
20 | (1) | Luxembourg | 0.927 | 0.14% |
(5) | United States | 0.10% | ||
22 | (1) | Slovenia | 0.926 | 0.33% |
(1) | Austria | 0.21% | ||
24 | (4) | Japan | 0.920 | 0.16% |
25 | (1) | Israel | 0.915 | 0.26% |
(3) | Malta | 0.50% | ||
27 | Spain | 0.911 | 0.40% | |
28 | (3) | France | 0.910 | 0.28% |
29 | (3) | Cyprus | 0.907 | 0.45% |
30 | Italy | 0.906 | 0.24% | |
31 | (2) | Estonia | 0.899 | 0.33% |
32 | (6) | Czech Republic | 0.895 | 0.22% |
33 | (3) | Greece | 0.893 | 0.18% |
34 | (3) | Bahrain | 0.888 | 0.80% |
35 | (3) | Andorra | 0.884 | 0.20% |
36 | (2) | Poland | 0.881 | 0.35% |
37 | (2) | Latvia | 0.879 | 0.51% |
(2) | Lithuania | 0.32% | ||
39 | (6) | Croatia | 0.878 | 0.53% |
40 | Qatar | 0.875 | 0.45% | |
(6) | Saudi Arabia | 0.70% | ||
42 | Portugal | 0.874 | 0.42% | |
43 | (10) | San Marino | 0.867 | 0.32% |
44 | Chile | 0.860 | 0.47% | |
45 | (9) | Turkey | 0.855 | 1.10% |
(5) | Slovakia | 0.14% | ||
47 | Hungary | 0.851 | 0.22% | |
48 | (6) | Argentina | 0.849 | 0.15% |
49 | Kuwait | 0.847 | 0.36% | |
50 | (1) | Montenegro | 0.844 | 0.38% |
51 | (2) | Saint Kitts and Nevis | 0.838 | 0.49% |
52 | (8) | Uruguay | 0.830 | 0.47% |
53 | (3) | Romania | 0.827 | 0.14% |
54 | (1) | Antigua and Barbuda | 0.826 | 0.18% |
55 | (7) | Brunei | 0.823 | 0.02% |
56 | (3) | Russia | 0.821 | 0.25% |
57 | (3) | Bahamas | 0.820 | 0.21% |
(5) | Panama | 0.47% | ||
59 | (7) | Oman | 0.819 | 0.22% |
60 | (3) | Trinidad and Tobago | 0.814 | 0.30% |
(4) | Georgia | 0.54% | ||
62 | (2) | Barbados | 0.809 | 0.18% |
63 | (6) | Malaysia | 0.807 | 0.41% |
64 | (5) | Costa Rica | 0.806 | 0.39% |
65 | (3) | Serbia | 0.805 | 0.39% |
66 | (6) | Thailand | 0.803 | 0.65% |
67 | (1) | Seychelles | 0.802 | 0.30% |
(4) | Kazakhstan | 0.38% | ||
69 | (11) | Belarus | 0.801 | 0.12% |
According to the United Nations Department of Economic and Social Affairs' World Economic Situation and Prospects report, the following 37 countries are classified as "developed economies" as of January 2024: [16]
31 countries in Europe:
two countries in Northern America:
four countries in Asia and the Pacific:
According to the World Bank, the following 34 members are classified as "OECD High-Income": [17] [18]
26 countries in Europe:
three countries in the Americas:
three countries in Asia:
two countries in Oceania:
There are 29 OECD member countries and the European Union—in the Development Assistance Committee (DAC), [19] a group of the world's major donor countries that discusses issues surrounding development aid and poverty reduction in developing countries. [20] The following OECD member countries are DAC members:
23 countries in Europe:
two countries in the Americas:
two countries in Asia:
two countries in Oceania:
According to the International Monetary Fund, 41 countries and territories are officially listed as "advanced economies", [1] [21] with the addition of 7 microstates and dependencies modified by the CIA which were omitted from the IMF version: [22]
29 countries and dependencies in Europe classified by the IMF, 6 others given by the CIA:
Plusd
seven countries and territories in Asia:
three countries and territories in the Americas classified by the IMF, one territory given by the CIA :
two countries in Oceania:
d The CIA has modified an older version of the IMF's list of 38 Advanced Economies, noting that the IMF's Advanced Economies list "would presumably also cover the following nine smaller countries of Andorra, Bermuda, Faroe Islands, Guernsey, Holy See, Jersey, Liechtenstein, Monaco, and San Marino[...]". San Marino (2012) and Andorra (2021) were later included in the IMF's list. [22]
There are 22 permanent members in the Paris Club (French : Club de Paris), a group of officials from major creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries.
15 countries in Europe:
three countries in the Americas:
three countries in Asia:
one country in Oceania:
Comparative table of countries with a "very high" human development (0.800 or higher), according to UNDP; "advanced" economies, according to the IMF; "high income" economies, according to the World Bank; and income per capita (purchasing power parity) higher than $25,000, according to the IMF.
Developed countries | ||||
---|---|---|---|---|
Countries | HDI [23] | IMF [24] | WB [25] | Per capita PPP 2024 [26] |
2023 | ||||
Croatia | Yes since 2007 | Yes since 2023 | Yes since 2017 | Yes since 2016 |
2021 | ||||
San Marino | Yes since 2021 | Yes since 2012 | Yes since 2000 | Yes before 2004 |
2020 | ||||
Andorra | Yes since 2003 | Yes since 2020 | Yes since 1990 | Yes before 2010 |
2016 | ||||
Latvia | Yes since 2005 | Yes since 2014 | Yes since 2012 | Yes since 2016 |
2015 | ||||
Lithuania | Yes since 2005 | Yes since 2015 | Yes since 2012 | Yes since 2013 |
2013 | ||||
Greece | Yes since 2001 | Yes since 1989 [27] | Yes since 1996 | Yes since 2013 |
2012 | ||||
Estonia | Yes since 2003 | Yes since 2011 | Yes since 2006 | Yes since 2012 |
2011 | ||||
Slovakia | Yes since 2006 | Yes since 2009 | Yes since 2007 | Yes since 2011 |
2009 | ||||
Czech Republic | Yes since 2001 | Yes since 2009 | Yes since 2006 | Yes since 2006 |
2008 | ||||
Malta | Yes since 2003 | Yes since 2008 | Yes since 2002 | Yes since 2007 |
Liechtenstein | Yes since 2000 | Yes since 2008 | Yes since 1990 | Yes since 1987 [28] |
Monaco | Yes before 1990 [29] | Yes since 2008 | Yes before 1990 | Yes since 1987 [30] |
2007 | ||||
Slovenia | Yes since 1998 | Yes since 2007 | Yes since 1997 | Yes since 2006 |
Portugal | Yes since 2005 | Yes since 1989 [27] | Yes since 1994 | Yes since 2007 |
2006 | ||||
Israel | Yes since 1991 | Yes since 1997 [31] | Yes since 1987 | Yes since 2006 |
South Korea | Yes since 1999 | Yes since 1997 [31] | Yes since 2001 | Yes since 2006 |
2003 | ||||
New Zealand | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 2003 |
2002 | ||||
Cyprus | Yes since 2001 | Yes since 2001 | Yes since 1988 | Yes since 2002 |
Taiwan | N/A [Note 1] | Yes since 1997 [31] | Yes since 1987 | Yes since 2002 |
2001 | ||||
Spain | Yes since 1995 | Yes since 1945 | Yes since 1987 | Yes since 2001 |
1999 | ||||
Singapore | Yes since 1999 | Yes since 1997 [31] | Yes since 1987 | Yes since 1991 |
Finland | Yes since 1994 | Yes since 1945 | Yes since 1987 | Yes since 1999 |
United Kingdom | Yes since 1992 | Yes since 1945 | Yes since 1987 | Yes since 1999 |
1998 | ||||
Ireland | Yes since 1996 | Yes since 1945 | Yes since 1987 | Yes since 1998 |
Iceland | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1998 |
Sweden | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1998 |
France | Yes since 1993 | Yes since 1945 | Yes since 1987 | Yes since 1998 |
1997 | ||||
Australia | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1997 |
Belgium | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1997 |
Canada | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1997 |
1996 | ||||
Italy | Yes since 1995 | Yes since 1945 | Yes since 1987 | Yes since 1996 |
Austria | Yes since 1992 | Yes since 1945 | Yes since 1987 | Yes since 1996 |
Germany | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1996 |
Japan | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1996 |
1995 | ||||
Netherlands | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1995 |
1994 | ||||
Denmark | Yes since 1991 | Yes since 1945 | Yes since 1987 | Yes since 1994 |
1992 | ||||
Luxembourg | Yes since 1992 | Yes since 1945 | Yes since 1987 | Yes since 1986 |
United States | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1992 |
1988 | ||||
Norway | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1988 |
1987 | ||||
Switzerland | Yes before 1990 | Yes since 1945 | Yes since 1987 | Yes since 1986 |
In process | ||||
Countries | HDI [23] | IMF [24] | WB [25] | per capita PPP 2024 [26] |
Uruguay | Yes since 2014 | No | Yes since 2012 | Yes since 2022 |
Chile | Yes since 2007 | No | Yes since 2012 | Yes since 2021 |
Trinidad and Tobago | Yes since 2021 | No | Yes since 2006 | Yes since 2006 |
Romania | Yes since 2013 | No | Yes since 2021 | Yes since 2017 |
Panama | Yes since 2019 | No | Yes since 2021 | Yes since 2015 |
Bahamas | Yes since 2016 | No | Yes since 1987 | Yes since 1999 |
Hungary | Yes since 2005 | No | Yes since 2014 | Yes since 2014 |
Poland | Yes since 2003 | No | Yes since 2009 | Yes since 2014 |
Kuwait | Yes since 2014 | No | Yes since 1987 | Yes since 1992 |
Bahrain | Yes since 2012 | No | Yes since 2001 | Yes since 1983 |
Oman | Yes since 2012 | No | Yes since 2007 | Yes since 1990 |
Saudi Arabia | Yes since 2010 | No | Yes since 2004 | Yes before 1980 |
United Arab Emirates | Yes since 2004 | No | Yes since 1987 | Yes before 1980 |
Brunei | Yes since 1999 | No | Yes since 1990 | Yes before 1985 |
Qatar | Yes since 1996 | No | Yes since 1987 | Yes before 1980 |
Saint Kitts and Nevis | Yes since 2011 | No | Yes since 2012 | Yes since 2017 |
Seychelles | Yes since 2022 | No | Yes since 2014 | Yes since 2016 |
Antigua and Barbuda | Yes since 2007 | No | Yes since 2012 | Yes since 2023 |
Other recognitions | ||||
Countries | HDI [23] | IMF [24] | WB [25] | per capita PPP 2024 [26] |
Serbia | Yes since 2019 | No | No | Yes since 2023 |
Costa Rica | Yes since 2019 | No | No | Yes since 2022 |
Mauritius | Yes since 2019 | No | No | Yes since 2022 |
Argentina | Yes since 2006 | No | No | Yes since 2022 |
Montenegro | Yes since 2013 | No | No | Yes since 2022 |
Bulgaria | Yes since 2015 | No | No | Yes since 2021 |
Kazakhstan | Yes since 2015 | No | No | Yes since 2018 |
Malaysia | Yes since 2016 | No | No | Yes since 2017 |
Russia | Yes since 2013 | No | No | Yes since 2017 |
Turkey | Yes since 2015 | No | No | Yes since 2015 |
Georgia | Yes since 2019 | No | No | Yes since 2024 |
Belarus | Yes since 2012 | No | No | Yes since 2024 |
Barbados | Yes since 2016 | No | Yes since 2006 | No |
Dominican Republic | No | No | No | Yes since 2023 |
Guyana | No | No | Yes since 2022 | Yes since 2022 |
Thailand | Yes since 2021 | No | No | No |
Maldives | No | No | No | Yes since 2021 |
Nauru | No | No | Yes since 2019 | No |
Libya | No | No | No | Yes since 2024 |
Mexico | No | No | No | Yes since 2024 |
China | No | No | No | Yes since 2024 |
The economy of Burkina Faso is based primarily on subsistence farming and livestock raising. Burkina Faso has an average income purchasing-power-parity per capita of $1,900 and nominal per capita of $790 in 2014. More than 80% of the population relies on subsistence agriculture, with only a small fraction directly involved in industry and services. Highly variable rainfall, poor soils, lack of adequate communications and other infrastructure, a low literacy rate, and a stagnant economy are all longstanding problems of this landlocked country. The export economy also remained subject to fluctuations in world prices.
The economy of the Central African Republic is $2.321 billion by gross domestic product as of 2019, even lower than much smaller countries such as Barbados with an estimated annual per capita income of just $805 as measured by purchasing power parity in 2019.
Gross Domestic Product (GDP) is a monetary measure of the market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic health of a country or region. Definitions of GDP are maintained by several national and international economic organizations, such as the OECD and the International Monetary Fund.
The economy of Latvia is an open economy in Europe and is part of the European Single Market. Latvia is a member of the World Trade Organization (WTO) since 1999, a member of the European Union since 2004, a member of the Eurozone since 2014 and a member of the OECD since 2016. Latvia is ranked the 14th in the world by the Ease of Doing Business Index prepared by the World Bank Group. According to the Human Development Report 2011, Latvia belongs to the group of very high human development countries. Due to its geographical location, transit services are highly developed, along with timber and wood processing, agriculture and food products, and manufacturing of machinery and electronic devices.
In ancient times, Maldives were renowned for cowries, coir rope, dried tuna fish, ambergris (maavaharu) and coco de mer (tavakkaashi). Local and foreign trading ships used to load these products in the Maldives and bring them abroad.
The gross domestic product (GDP) of Niger was $16.617 billion US dollars in 2023, according to official data from the World Bank. This data is based largely on internal markets, subsistence agriculture, and the export of raw commodities: foodstuffs to neighbors and raw minerals to world markets. Niger, a landlocked West African nation that straddles the Sahel, has consistently been ranked on the bottom of the Human Development Index, at 0.394 as of 2019. It has a very low per capita income, and ranks among the least developed and most heavily indebted countries in the world, despite having large raw commodities and a relatively stable government and society not currently affected by civil war or terrorism. Economic activity centers on subsistence agriculture, animal husbandry, re-export trade, and export of uranium.
The economy of Senegal is driven by mining, construction, tourism, fishing and agriculture, which are the main sources of employment in rural areas, despite abundant natural resources in iron, zircon, gas, gold, phosphates, and numerous oil discoveries recently. Senegal's economy gains most of its foreign exchange from fish, phosphates, groundnuts, tourism, and services. As one of the dominant parts of the economy, the agricultural sector of Senegal is highly vulnerable to environmental conditions, such as variations in rainfall and climate change, and changes in world commodity prices.
The economy of Tanzania is a lower-middle income economy that is overwhelmingly dependent on agriculture. Tanzania's economy has been transitioning from a planned economy to a market economy since 1985. Although total GDP has increased since these reforms began, GDP per capita dropped sharply at first, and only exceeded the pre-transition figure in around 2007.
The category of newly industrialized country (NIC), newly industrialized economy (NIE) or middle income country is a socioeconomic classification applied to several countries around the world by political scientists and economists. They represent a subset of developing countries whose economic growth is much higher than that of other developing countries; and where the social consequences of industrialization, such as urbanization, are reorganizing society.
The world economy or global economy is the economy of all humans in the world, referring to the global economic system, which includes all economic activities conducted both within and between nations, including production, consumption, economic management, work in general, financial transactions and trade of goods and services. In some contexts, the two terms are distinct: the "international" or "global economy" is measured separately and distinguished from national economies, while the "world economy" is simply an aggregate of the separate countries' measurements. Beyond the minimum standard concerning value in production, use and exchange, the definitions, representations, models and valuations of the world economy vary widely. It is inseparable from the geography and ecology of planet Earth.
This page compares the sovereign states of Europe on economic, financial and social indicators.
The economy of North America comprises more than 596 million people in its 24 sovereign states and 15 dependent territories. It is marked by a sharp division between the predominantly English speaking countries of Canada and the United States, which are among the wealthiest and most developed nations in the world, and countries of Central America and the Caribbean in the former Latin America that are less developed. Mexico and Caribbean nations of the Commonwealth of Nations are between the economic extremes of the development of North America.
The following are links to some international rankings of the United States.
The economy of the Middle East is very diverse, with national economies ranging from hydrocarbon-exporting rentiers to centralized socialist economies and free-market economies. The region is best known for oil production and export, which significantly impacts the entire region through the wealth it generates and through labor utilization. In recent years, many of the countries in the region have undertaken efforts to diversify their economies.
Here is a list of international rankings of Denmark, in terms of Economic, Environmental, Military, Political, and Social aspects.
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