Developed Market, Developing Market and Emerging Market Differences
December 6th, 2012 by Marc Prosser
A developed market is a country with a highly industrialized economy, typically with a large service sector. A developed country will tend to have a high GDP per capita income, and built out infrastructure (transportation, communications) compared to a developing country. Another name for a developed market is “advanced” market or advanced economy.
Examples: United States, Japan, Germany, Australia, Canada, France
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A developing market is the opposite of a developed market. Surprisingly, China is a developing market because, while it has the second highest GDP in the world, its also has the largest population. The average citizen in China does not have close to the same level of economic prosperity as one would find in the United States.
Examples: Argentina, Nigeria, Jordan, Vietnam, Hungary, North Korea, India
An emerging market is a developing market that is quickly moving towards becoming a developed market, typically with annual GDP growth in the high single digit or even double digits.
Examples: Brazil, China, Turkey, Mexico, Indonesia
There is no hard and fast rules as to the definition of an emerging market, developed market and developing market. There are three global organizations that “decide” what category a country falls under. They are the International Monetary Funds (IMF), The Organization for Economic Cooperation and Development (OECD) and the World Bank. Each has its own formula which provides slight differences in which countries fall under which categories.
Here is the list of the International Monetary Fund’s List of Countries with Advanced / Developed Economies:
