Developed, Emerging and Developing Economies
Growth of the UK and the BRIC Economies Since 2000
Economic growth: an increase in real GDP, the value of an economy's output adjusted for inflation.
BRIC stands for Brazil, Russia, India and China: four large economies grouped together because they were expected to grow much faster than high-income economies. The table shows how fast each has actually grown.
| Economy | Average real GDP growth a year, 2000-2025 |
|---|---|
| UK | 1.5% |
| Brazil | 2.3% |
| Russia | 3.0% |
| India | 6.3% |
| China | 8.0% |
Source: World Bank, real GDP at constant prices (data updated October 2026).
Three patterns stand out:
- China and India grew fastest. By 2025, China's real GDP was almost seven times its 2000 level and India's more than four times. The UK's was about one and a half times.
- Brazil and Russia slowed sharply. Both grew quickly in the 2000s, helped by high prices for the commodities they export, such as oil and soya. Since 2010 their growth has been close to the UK's.
- The UK grew slowly but steadily, which is typical of a mature economy.
Poorer economies can grow faster because they are catching up. They can copy technology that richer countries already use, and move workers from low-output farming into factories, where each worker produces far more.
Indicators of Growth and Development
GDP growth shows how fast output is rising. The spec's four indicators show how well off people are, and whether growth is improving their lives.
GDP per capita: real GDP divided by the population, giving the average income per person. To compare countries, it is usually adjusted for differences in the cost of living.
Literacy rate: the percentage of adults, aged 15 and over, who can read and write.
Health is usually measured by life expectancy at birth (how long a newborn can expect to live) or the infant mortality rate (deaths of babies under one year old per 1,000 live births).
Human Development Index (HDI): a United Nations measure that combines health (life expectancy), education (years of schooling) and income (GNI per capita) into one score between 0 and 1.
The UN groups countries by their HDI score: very high (0.800 or above), high, medium and low (below 0.550).
| Indicator | Strength | Limitation |
|---|---|---|
| GDP per capita | Easy to calculate and available for almost every country | An average: it hides how unequally income is shared, and misses unpaid and unrecorded work |
| Literacy | Shows whether people have the basic skills to get better-paid work | Close to 100% in high-income countries, so it cannot tell them apart |
| Health | Measures something people value directly: living longer | Can be held back by things other than income, such as disease or conflict |
| HDI | Combines income, health and education, so it gives a broader picture than any one measure | Still an average, and ignores inequality and damage to the environment |
Characteristics of Developed, Emerging and Developing Economies
Developed economy: a high-income economy, also called a mature economy, where most people work in services and growth is slow but steady.
Emerging economy: an economy moving from developing to developed, with fast growth, expanding industry and rising incomes.
Developing economy: a low-income economy where many people work in farming and literacy and life expectancy are lower.
| Feature | Developed (mature) | Emerging | Developing |
|---|---|---|---|
| GDP per capita | High | Usually middle, and rising fast | Low |
| Growth rate | Slow but steady | Fast | Varies, often unstable |
| Main sector | Services (tertiary) | Manufacturing growing fast (secondary) | Farming and raw materials (primary) |
| Literacy and health | High literacy, long life expectancy | Improving quickly | Lower literacy, shorter life expectancy |
| Population | Slow growth, ageing, mostly in towns and cities | A growing middle class, moving to the cities | Fast growth, young, mostly rural |
| HDI | Very high | Medium to high | Low to medium |
| Examples | UK, Germany, Japan | Brazil, India, China | Malawi, Niger, Mozambique |
These are broad groups, not exact categories. An emerging economy can have modern, high-tech cities alongside poor rural areas that look more like a developing economy.
Mean and Median Incomes
Mean income: total income divided by the number of people, the ordinary average.
Median income: the income of the person in the middle when everyone is ranked from lowest to highest income.
Worked Example: Five Workers
Five people earn £18,000, £24,000, £30,000, £36,000 and £142,000 a year.
| Measure | Working | Answer |
|---|---|---|
| Mean | £250,000 ÷ 5 | £50,000 |
| Median | Middle of the five, ranked in order | £30,000 |
One high earner pulls the mean up to £50,000, more than four of the five people earn. The median of £30,000 is much closer to what a typical person in the group receives.
A few very high earners pull the mean above the median, so the median is the better guide to a typical income, and official UK figures on household income lead with it. A wide gap between the two is a sign of inequality.
A faster growth rate does not mean a richer country. China has grown far faster than the UK since 2000, but its GDP per capita is still much lower. Growth rates show how quickly output is changing; GDP per capita and the HDI show how well off people are. When a question gives growth data, say which one it measures.
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