China’s fabulous growth rate and its strong economy has enabled it to emerge on top of the leading economies in the world. Second on the list is the United States of America. The United States has made remarkable recovery following the economic crisis and is today ranked as one of the most powerful economies in the world.
India is third on the list. India, which has done exceedingly well in the past few years, has largely been driven by its young and faster-growing population. India grew rapidly and reached the size of eight trillion last year.
Japan is another Asian nation that finds a place on the list and ranks fourth. Russia has edged past economic powers United Kingdom and France, which find themselves at the ninth and tenth spot respectively. Russia at the sixth spot is slightly behind Germany, which is at the fifth spot. The only South American nation that has made it to the list is Brazil, which, at the seventh spot, has achieved the feat due to its inward-oriented economy and moderately free markets.
|Countries||Real GDP Growth (% change)||Countries||Real GDP Growth (% change)|
|Iraq||7.2||São Tomé and Príncipe||5|
|Cambodia||7||Democratic Republic of the Congo||4.9|
|Rwanda||6.3||Saint Kitts and Nevis||4.7|
|Central African Republic||5.7||Vanuatu||4.5|
|Uganda||5.3||Republic of the Congo||4.4|
The recent list of the world’s fastest growing economies has thrown up many surprises. Though, India, which has seen a boom post 1991 liberalization, was expected to find a place in the list but the inclusion of some other nations such as Myanmar, Senegal, Laos, Bangladesh came as a pleasant surprise. Myanmar, a nation in the southeast Asia and touching India’s borders stands at the first place with a GDP growth expected at a whopping 8.6 percent. India, which has bagged the fourth spot with an expected GDP growth rate of 7.5 percent, has been outdone by other Asian and African nations such as Ivory Coast and Bhutan, whose GDP growth rate is projected at 8.5 percent and 8.4 percent respectively. The war-ravaged nation of Iraq, too, has found a place at the 6th spot, with its GDP growth projected at 7.2 percent.
Read on to find out about the top ten fastest growing economies in the world. Scroll on the table below and you would get the name of the country, its ranking on the world stage and the projected GDP.
IMF’s World Economic Outlook has listed Myanmar as the fastest growing economy in the world. It has been projected that the country’s GDP will witness a growth rate of 8.6 percent this year. Some of the factors that have led to Myanmar’s economic growth include political and economic reforms. The World Bank states that increased consumer and investor confidence and rising exports have resulted in a remarkable growth in Myanmar’s economy.
# Ivory Coast
The African nation of Ivory Coast has made a deep impression due to its fast growing economy. Ivory Coast’s GDP is projected to grow by 8.5 percent. The World Bank states that government policies and structural reforms have greatly benefited the country’s economy as it has led to inclusive growth.
The small country of Bhutan is one of the fastest growing economies in the world and it has been projected that its economy would grow by 8.4 percent. The economy of Bhutan is relatively undeveloped. The main drivers of its economy are agriculture, hydro-power and forestry. A major portion of the country’s hydro-power is exported to its neighbor, India.
India has made quite a few heads turn with its fast growing economy. Its economy is projected to grow at a rate of 7.5 percent. Strong growth has been posted by the manufacturing and financial services; however, the fourth quarter witnessed a decline in investments. The services industry accounts for around two-thirds of the output.
The southeast Asian nation of Laos has been included in the World Bank’s list of the fastest growing economies in the world. The country’s economy is projected to grow by 7.4 percent. The main drivers of the economy are increased power generation, services and construction.
Though ravaged by war and a victim of the ISIS, Iraq has managed to occupy the sixth position among the world’s fastest-growing economies. Its GDP is expected to grow at 7.2 percent. Though the US presence in Iraq following the defeat of Saddam Hussein ended in 2011, Iraq is at war with the terrorist group ISIS.
A southeast Asian nation, Cambodia’s economy is projected to grow at 7 percent. Agriculture is one of the main sector of the economy. Other sectors that have witnessed strong growth and attracted foreign investment include construction, textiles, garment and the tourism sector. Though, Cambodia is one of the fastest growing economies, yet its per capita income is quite low when compared with that of its neighboring countries.
The GDP growth of the East African nation of Tanzania is projected to be around 6.9 percent. It is ranked at the 8th spot among the list of the world’s fastest growing economies. Tanzania witnessed a tough period due to the Great Recession in 2008; however, following this the economy of the country has witnessed rapid expansion. Sectors such as telecommunications, banking and tourism have seen strong and consistent growth.
Occupying the ninth spot on the list of the fastest growing economies of the world is the African nation of Senegal with a projected GDP growth of 6.6 percent. The agriculture sector is a prominent driver of the economy; however, commodities and natural resources are also making a major contribution to the GDP. Hospitality and tourism are other prominent sectors of the country.
The South Asian nation of Bangladesh stands at the tenth spot. Its projected GDP growth rate is at 6.6 percent. Bangladesh is currently the eighth most populated country in the world. It is also rated as one of the world’s most densely populated country. The ready-made garment industry is one of the top sectors for direct investment; however, other sectors are also showing signs of positive and therefore, consistent growth.
Given the uncertainties and downside risks prevalent in the world economy, the current policy actions are not adequate for the revival of the economy. More concerted actions now must be implemented to improve the situation.
These can be:
• In the Euro area, the piecemeal approach that has been practiced since past two years needs to be changed into a more comprehensive and integrated approach.The present state of affairs requires faster and more effective action plans. Only when efforts to restore the confidence in the union turns out to be successful then only other more technical action plans can be put into place.
• The US should prevent a sudden and acute contraction in fiscal policy – the fiscal cliff and surmount the political gridlock that was still prevalent at the end of the year 2012.
• The major developing countries that are going through the spill over effect should practice more stronger and counter cyclical policy measures to address the problems being faced. For example, China should focus on meeting domestic demand like health, education, sanitation etc, rather than concentrating on exports to other economies. Sufficient resources must be available for developing countries and especially for those which have large developmental needs. This will contribute towards attainment of Millennium Development Goals and for sustainable growth of LDCs.
WORLD GDP Growth Report 2000- 2016
|Year||GDP Growth %||Year||GDP Growth %|
GDP Current Prices (U.S. dollars (Billions)