What is a converging economy? a converging economy is incapable of catching up to high‑income economies due to low levels of technology and human capital. a converging economy has surpassed other high‑income economies in terms of technology by investing in human and physical capital. a converging economy describes the downward spiral of all higher‑income economies to the state of lower‑income economies. a converging economy has the capability to catch up with higher‑income economies in terms of technology by investing in human and physical capital.