List of Developed and Developing Countries According to Global Economic Criteria in 2025

Countries around the world are generally categorized into two main groups based on their economic conditions and the well-being of their people: developed and developing countries. This classification is important for understanding global economic dynamics, planning development strategies, and shaping international policies.

We will review the criteria used to classify these countries, the list of developed and developing countries in 2025, and an in-depth explanation of each point based on the latest data. Let’s get started!

Also read: 2025 List of Richest Countries in the World by GDP per Capita (PPP)

Global Economic Criteria for Developed and Developing Countries

According to the International Monetary Fund (IMF) and the World Bank, several key indicators are used to determine whether a country is considered developed or developing. These criteria include:

1. Per Capita Income
   Per capita income, calculated from Gross National Income (GNI) or Gross Domestic Product (GDP) divided by population, is a primary indicator. According to the World Bank in 2025, countries with per capita income above USD 13,845 per year are classified as developed (high-income) countries. In contrast, countries with income below this threshold, particularly in the range of USD 1,146 – USD 13,845, fall under developing countries. Low-income countries have a GNI per capita below USD 1,135.
2. Export Diversification
   Developed countries have diversified exports and do not rely on one or two commodities. For example, Germany exports cars, machinery, and pharmaceuticals. On the other hand, many developing countries, such as Nigeria, rely heavily on oil exports, making their economies vulnerable to global price fluctuations.
3. Integration with the Global Financial System
   Developed countries are usually well-integrated into the international financial system, with high trade volumes and active participation in institutions such as the IMF or World Bank. Developing countries, while increasingly involved, often have limited access to global financial markets.
4. Human Development Index (HDI)
   The HDI, measured by the United Nations Development Programme (UNDP), considers life expectancy, education, and per capita income. Developed countries have an HDI above 0.800 (very high category), while developing countries typically fall in the range of 0.35 – 0.80. In 2025, countries like Norway and Switzerland continue to dominate the highest HDI rankings.
5. Level of Industrialization and Infrastructure
   Developed countries have post-industrial economies, dominated by the services and high-tech sectors, with advanced infrastructure such as 5G networks and modern transportation. Developing countries are still in industrial or agrarian phases, with evolving infrastructure—like Indonesia, which is continuously improving roads and ports.

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Also read: Top 10 Export Products of Indonesia in 2025 and Their Destination Countries

List of Developed Countries in the World 2025

Based on IMF and World Bank reports, the following countries are categorized as developed in 2025, with high per capita income, very high HDI, and diversified economies:

• Switzerland: HDI 0.962 (2023), per capita income ~USD 92,000. Known for finance, pharmaceuticals, and technology.
• Norway: HDI 0.957, per capita income ~USD 82,000. Known for excellent resource management and high social welfare.
• Singapore: Per capita income ~USD 88,000, global financial hub with advanced infrastructure.
• United States: Per capita income ~USD 78,000, a leader in technology and innovation.
• Germany: Per capita income ~USD 54,000, with diversified exports like automobiles and machinery.
• Guyana: Newly classified as a developed country in 2023 due to an oil revenue boom and 60% economic growth in 2022.
• Others: Australia, Canada, Japan, South Korea, the UK, France, the Netherlands, Denmark, Sweden, and more (around 42 countries total according to the IMF).

These countries have high living standards, low poverty rates, and robust healthcare and education systems. They are also active in international organizations like the Paris Club and the Development Assistance Committee (DAC), which focus on global development aid.

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List of Developing Countries in the World 2025

Developing countries include low- and middle-income nations that are still working to improve their economies and the well-being of their populations. Here are some examples based on the latest data:

• Indonesia: Per capita income ~USD 5,300 (2023), HDI 0.705. A middle-upper income country, its economy relies on natural resources and manufacturing.
• India: Per capita income ~USD 2,800, HDI 0.644. Rapid economic growth, but still faces poverty and infrastructure challenges.
• Brazil: Per capita income ~USD 9,000, with an economy based on agriculture and industry.
• Nigeria: Per capita income ~USD 2,100, highly dependent on oil.
• Others: Vietnam, the Philippines, Egypt, Argentina, Mexico, Thailand, and many countries across Africa and Asia.

Developing countries often face challenges such as high unemployment, limited access to education and healthcare, and dependency on commodity exports. However, many, like Indonesia, are transitioning toward more diverse economies through investments in technology and infrastructure.

Also read: List of Visa-Free European Countries for Indonesian Passport Holders

Challenges and Opportunities in 2025

In 2025, the world faces new dynamics. Developed countries like the US and China are competing in AI and green energy technology. Meanwhile, developing countries like India and Vietnam are becoming global manufacturing hubs. However, challenges such as climate change and economic inequality remain shared concerns. Developing countries need to focus on:

• Investing in education and healthcare to improve HDI.
• Diversifying economies to reduce commodity dependence.
• Building infrastructure to support economic growth.

Meanwhile, developed countries must continue to innovate while supporting developing countries through technology transfer and development assistance.

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The classification of developed and developing countries based on global economic criteria gives us a clear picture of today’s world. Developed countries like Switzerland, Norway, and Singapore stand out for their advanced economies and high welfare levels, while developing countries like Indonesia and India are steadily progressing. By understanding criteria such as per capita income, HDI, and export diversification, we can better recognize future opportunities and challenges.