The category ofnewly industrialized country (NIC),newly industrialized economy (NIE)[1] ormiddle-income country[2] is asocioeconomicclassification applied to several countries around the world bypolitical scientists andeconomists. They represent a subset ofdeveloping countries whose economic growth is much higher than that of other developing countries; and where the social consequences ofindustrialization, such asurbanization, are reorganizing society.
NICs are countries whose economies have not yet reached adeveloped country's status but have, in a macroeconomic sense, outpaced their developing counterparts. Such countries are still considered developing nations and only differ from other developing nations in the rate at which an NIC's growth is much higher over a shorter allotted time period compared to other developing nations.[3] Another characterization of NICs is that of countries undergoing rapideconomic growth (usuallyexport-oriented).[4] Incipient or ongoingindustrialization is an important indicator of an NIC.
Newly industrialized countries can bring about an increase of stabilization in a country's social and economic status, allowing the people living in these nations to begin to experience better living conditions and better lifestyles. Another characteristic that appears in newly industrialized countries is the further development in government structures, such as democracy, the rule of law, and less corruption. Other such examples of a better lifestyle people living in such countries can experience are better transportation, electricity, and better access to water, compared to other developing countries and low infant mortality rate.
The term came into use around 1970, when theFour Asian Tigers[5] ofTaiwan,Singapore,Hong Kong andSouth Korea rose to become globally competitive in science, technological innovation and economic prosperity as well as NICs in the 1970s and 1980s, with exceptionally fast industrial growth since the 1960s; all four countries having since graduated into high-techindustrializeddeveloped countries withwealthy high-income economies. There is a clear distinction between these countries and the countries now considered NICs. In particular, the combination of an open political process, highGNI per capita, and a thriving, export-oriented economic policy has shown that theseEast Asian economic tiger countries have roughly come to a match withdeveloped countries as those ofWestern Europe as well asCanada,Japan,Israel,[6]Australia,New Zealand and theUnited States.
All four countries are classified ashigh-income economies by theWorld Bank anddeveloped countries by theInternational Monetary Fund (IMF) and U.S.Central Intelligence Agency (CIA). All of theFour Asian Tigers, likeWestern European countries, have aHuman Development Index considered "very high" by theUnited Nations.
The table below presents the list of countries ranked by NICs by different authors and experts.[7][8][9][10]Turkey andSouth Africa were classified among the world's 34 developed countries (DCs) by theCIA World Factbook in 2008.[1] Turkey became a founding member of theOECD in 1961 andMexico joined in 1994. TheG8+5 group is composed of the originalG8 members in addition toChina,India,Mexico,South Africa andBrazil. The members of theG20 include Brazil, China, India,Indonesia, Mexico, South Africa and Turkey.
Note: Green-colored cells indicate highest value or best performance in index, while yellow-colored cells indicate the opposite.
| Country | GDP (nominal) (millions of USD, 2025IMF)[11] | GDP per capita (nominal) (USD, 2025IMF)[11] | GDP (PPP) (millions of current Int$, 2025IMF)[11] | GDP per capita (PPP) (current Int$, 2025IMF)[11] | Income inequality (GINI) (2011–25)[12][13] | Human Development Index (HDI, 2023)[14] | Real GDP growth rate (2025)[15] |
|---|---|---|---|---|---|---|---|
 South Africa | 410,341 | 6,667 | 1,026,500 | 15,989 | 63(2014) | 0.741 (high) | 1.1 |
 Brazil | 2,256,910 | 10,578 | 4,973,385 | 23,239 | 51.6(2023) | 0.786 (high) | 2.4 |
 Mexico | 1,862,740 | 13,967 | 3,436,930 | 25,463 | 43.5(2022) | 0.789 (high) | 1.0 |
 China | 19,398,577 | 13,806 | 41,015,824 | 29,191 | 36.0(2022) | 0.797 (high) | 4.8 |
 India | 4,125,213 | 2,818 | 17,714,180 | 12,132 | 25.5(2022) | 0.685 (medium) | 6.6 |
 Philippines | 497,495 | 4,321 | 1,477,711 | 12,935 | 39.3(2023) | 0.720 (high) | 5.4 |
 Malaysia | 444,984 | 13,901 | 1,478,139 | 43,665 | 40.7(2021) | 0.819 (very high) | 4.5 |
 Indonesia | 1,443,256 | 5,074 | 5,015,762 | 17,612 | 34.9(2024) | 0.728 (high) | 4.9 |
 Thailand | 546,213 | 7,942 | 1,853,771 | 26,359 | 33.5(2023) | 0.798 (high) | 2.0 |
 Turkey | 1,565,472 | 18,199 | 3,767,766 | 43,787 | 44.5(2022) | 0.853 (very high) | 3.5 |
For China and India, the immense population of these two countries (each with over1.4 billion people as of May 2024) means thatper capita income will remain low even if either economy surpasses that of the United States in overall GDP. When GDP per capita is calculated according topurchasing power parity (PPP), this takes into account the lowercosts of living in each newly industrialized country. Nominal GDP per capita typically is an indicator for living standards in a given country as well.[16]
Brazil, China, India, Mexico and South Africa meet annually with the G8 countries to discuss financial topics and climate change, due to their economic importance in today's global market and environmental impact, in a group known asG8+5.
Authors set lists of countries accordingly to different methods of economic analysis. Sometimes a work ascribes NIC status to a country that other authors do not consider a NIC. This is the case of countries such asBrunei,Mongolia[17] andVietnam.[7]
| Country | GDP (nominal) (millions of USD, 2024IMF)[11] | GDP per capita (nominal) (USD, 2024IMF)[11] | GDP (PPP) (millions of current Int$, 2024IMF)[11] | GDP per capita (PPP) (current Int$, 2024IMF)[11] | Income inequality (GINI) (2019–22)[12][13] | Human Development Index (HDI, 2023)[14] | Real GDP growth rate (2025)[15] |
|---|---|---|---|---|---|---|---|
 Brunei | 16,679 | 37,023 | 42,815 | 95,039 | 36.6(2019) | 0.837 (very high) | 1.8 |
 Mongolia | 27,242 | 7,576 | 73,764 | 20,514 | 31.4(2022) | 0.747 (high) | 5.5 |
 Vietnam | 506,426 | 4,986 | 1,762,148 | 17,348 | 36.1(2022) | 0.766 (high) | 6.5 |
NICs usually benefit from comparatively low wage costs, which translates into lower input prices for suppliers. As a result, it is often easier for producers in NICs to outperform and outproduce factories indeveloped countries, where thecost of living is higher, andtrade unions and other organizations have more political sway. This comparative advantage is often criticized by advocates of thefair trade movement.
While South Africa is considered wealthy on a wealth-per-capita basis,economic inequality is persistent and extreme poverty remains high in the country.[18] South Africa is a NIC with 34% of population unemployed and poor.
Other NICs face common problems such as widespread corruption and political instability, as well as other circumstances that cause them to face themiddle income trap.[3]
Economic classification of countries | |||||
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| Three/Four-World Model | |||||
| Gross domestic product (GDP) |
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| Gross national income andIncome | |||||
| Wages andsalary | |||||
| Wealth | |||||
| Othernational accounts | |||||
| Human development | |||||
| Digital divide | |||||
| Net international investment position (NIIP) | |||||
| International | |
|---|---|
| National | |
