Newly industrialized country

NICs are countries whose economies have not yet reached a developed 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 rapid economic growth (usually export-oriented).^[4] Incipient or ongoing industrialization 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 the Four Asian Tigers^[5] of Taiwan, Singapore, Hong Kong and South 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-tech industrialized developed countries with wealthy 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, high GNI per capita, and a thriving, export-oriented economic policy has shown that these East Asian economic tiger countries have roughly come to a match with developed countries as those of Western Europe as well Canada, Japan, Australia, New Zealand and the United States.

All four countries are classified as high-income economies by the World Bank and developed countries by the International Monetary Fund (IMF) and U.S. Central Intelligence Agency (CIA). All of the Four Asian Tigers, like Western European countries, have a Human Development Index considered "very high" by the United Nations.

The table below presents the list of countries consistently considered NICs by different authors and experts.^[6][7][8][9] Turkey and South Africa were classified among the world's 34 developed countries (DCs) by the CIA World Factbook in 2008.^[1] Turkey became a founding member of the OECD in 1961 and Mexico joined in 1994. The G8+5 group is composed of the original G8 members in addition to China, India, Mexico, South Africa and Brazil. The members of the G20 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	Region	GDP (nominal) (Millions of USD, 2023 IMF)[10]	GDP per capita (nominal) (USD, 2023 IMF)[10]	GDP (PPP) (Millions of current Int$, 2023 IMF)[10]	GDP per capita (PPP) (current Int$, 2023 IMF)[10]	Income inequality (GINI) 2011–19[11][12][13]	Human Development Index (HDI, 2021)[14]	Real GDP growth rate as of 2022[15]
South Africa	Africa	380,906	6,485	990,030	16,091	64 (2018)	0.713 (high)	1.1
Brazil	Latin America	2,126,809	10,412	4,020,381	18,686	44.9 (2019)	0.754 (high)	1.0
Mexico		1,811,468	12,674	3,125,902	23,820	41.8 (2019)	0.758 (high)	1.2
China	Asia-Pacific	17,700,899	13,721	33,014,998	23,382	38.5 (2016)	0.768 (high)	4.4
India		4,105,228	2,612	14,261,176	10,475	35.3 (2018)	0.633 (medium)	6.8
Philippines		435,675	3,905	1,289,281	11,420	42.3 (2019)	0.699 (medium)	5.7
Malaysia		430,895	13,382	1,230,823	36,847	41.1 (2019)	0.803 (very high)	4.4
Indonesia		1,417,387	5,108	4,398,729	15,855	38.2 (2018)	0.705 (high)	5.0
Thailand		512,193	8,182	1,591,402	22,675	34.9 (2019)	0.800 (very high)	3.7
Turkey	Eurasia	1,340,689	15,368	3,805,673	43,887	41.9 (2019)	0.838 (very high)	3.0

For China and India, the immense population of these two countries (each with over 1.3 billion people as of May 2021) means that per 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 to purchasing power parity (PPP), this takes into account the lower costs 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 as G8+5.

Other

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 as Argentina, Egypt, Sri Lanka^[17] and Russia.^[6]

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 in developed countries, where the cost of living is higher, and trade unions and other organizations have more political sway. This comparative advantage is often criticized by advocates of the fair 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.

Mexico's economic growth is hampered in some areas by an ongoing drug war.^[19]

Other NICs face common problems such as widespread corruption and political instability, as well as other circumstances that cause them to face the middle income trap.^[3]

• Emerging market
• Flying geese paradigm
• Global North and Global South
• Industrialisation
• Mechanization
• Mass production
• Science in newly industrialized countries
• Second World

Groupings

• BRIC / MINT / Next Eleven
• BRICS
• CIVETS
• G8+5
• G20
• G20 developing nations