Advanced economy

How it is used

The IMF divides the world into advanced economies and emerging market and developing economies. Advanced economies include the US, Japan, Germany and South Korea. Developed country is a common synonym; the old term First World is now rarely used.

Example sentences

1. Growth in advanced economies is expected to stay below 2% next year.

2. Ageing populations are a challenge for most advanced economies.

Common collocations

• advanced economies
• advanced and emerging economies
• major advanced economies
• developed country

Related terms

• developing countryA country with a lower average income, less industrial output and weaker infrastructure than the rich industrialised countries.
• emerging marketA middle-income economy that is growing and industrialising quickly and opening up to foreign trade and investment, such as Brazil, India or Türkiye.
• per capitaFor each person in a population; a total divided by the number of people, as in GDP per capita or income per capita.
• standard of livingHow comfortably people live, judged by their income, housing, health care, education and access to goods and services.

More terms: Development and Inequality

• inequality
• poverty line
• Gini coefficient
• human capital
• informal economy
• sustainable development
• infrastructure
• income distribution
• redistribution
• brain drain
• extreme poverty
• Human Development Index