Miracle or Flash: Top 10+ Fastest Growing Economies 2024 in the World
Based on the latest updated IMF World Economic Outlook Report, we will be surprised by the economic growth rate of over 10%, even nearly 30% in 2024 of some countries and territories. in Asia and Africa – two of the fastest growing regions in the world.
Join KnowInsiders.com to find out what creates such miraculous economic growth while the US and Europe are facing difficulties, even crisis? Where does this miraculous economic growth come from, is it sustainable or just a flash in the pan?
According to the International Monetary Fund’s (IMF) most recent projections, economic growth is predicted to slow down globally through the end of 2024. The International Monetary Fund (IMF) projects that the global real GDP will expand by 3.0 percent in 2023 and 2024, which is 0.2 percentage points higher than the earlier estimate from April.
Regionally speaking, emerging and developing Asia is predicted to see the highest growth rates, with output expected to increase by 5.3 percent and 5.0 percent, respectively, in 2023 and 2024.
While advanced economies as a whole anticipate that the rate will drop from 2.7 percent in 2022 to 1.4 percent in 2024, the United States is predicted to experience faster declining growth during this time, falling from 2.1 percent in 2022 to just 1.0 percent in 2024.
Read more: What Are The Largest Economies In The World – Top 10
Macao’s economy is largely dependent on tourism, which accounts for almost 70% of the region’s GDP and more than 60% of jobs.
The International Monetary Fund (IMF) projected in April 2023 that Macau’s GDP would expand by as much as 58.9 percent that year. The GDP is expected to grow by double digits in 2024, at 20.6 percent, while in 2025, growth of 8.5 percent is projected.
In addition, Fitch Ratings projected that Macau would grow by 46% in 2023 after declining by 17% in 2022.
Over the course of projections, Macau, a special administrative region of China, is expected to grow at the second-fastest rate in the world. However, rather than being the result of a promising growth outlook, this is more of a base effect after one of the sharpest pandemic-related downturns in history. Macau’s economy is largely reliant on tourism and gaming.
The nation is mostly reliant on tourists from the mainland and one industry, gambling.
With just 815,000 people, Guyana’s economy (+26.6%) is predicted to grow at the second-fastest rate in 2024. It’s interesting to note that, with a 62% GDP growth last year, it was the fastest growing economy in the world. With predicted growth of 37% in 2023, it is likely to hold that title once more.
Rising oil exports from the offshore oil field known as Stabroek Block, which is being developed by a consortium led by Exxon Mobil, are a major factor driving this growth. The BBC reports that Guyana’s oil reserves exceed 11 billion barrels.
With 340 islands making up its small nation, Palau has a total land area of 180 square miles (466 square kilometers). The U.S. State Department estimates that 40% of Palau’s GDP comes from tourism.
The recent military takeover may have a significant impact on Niger’s potential economic growth in the future. Global sanctions may cause disruptions to the country’s Agadem oil field, which is primarily owned by China National Petroleum Corporation (CNPC).
With every sector expected to grow by at least 5%, the real GDP is predicted to grow by 7.0% in 2023 and 11.8% in 2024. A projection by the African Development Bank Group states that increased consumption, increased oil investment, and exports made possible by the new pipeline will accelerate GDP growth.
Due to its dependence on the oil sector, Senegal’s economy is also susceptible to future fluctuations in growth.
Real Senegalese GDP growth is expected to reach 4.1% in 2023, according to BMI, a Fitch Solutions company. This is an increase from the estimated 3.6% growth in 2022. Our 2023 forecast was revised downward from our previous estimate of 7.8% due to delays in important hydrocarbons projects.
Growth will pick up speed in 2024 and reach 9.0%, the highest level in Senegal’s post-independence history, as oil and gas production from the Sangomar and Greater Tortue Ahmeyim projects start.
The African Development Bank Group projects that real GDP will increase by 8.0% in 2024, driven by high oil prices and the hydrocarbon sector’s recovery, and by 17.9% in 2023 due to base effects.
It is anticipated that inflation will stay under control, coming in at 4.5% in 2023 and 4.6% in 2024. Due to the high oil revenue, the fiscal balance is expected to post a surplus of 18.8%–22.1% of GDP in the near future. A significant build-up of foreign reserves is anticipated if the oil sector continues to recover, as exports are expected to exceed imports. This could increase the current account surplus, which is predicted to reach 24.5% of GDP in 2023. Obstacles include escalating political unrest and hostilities, which result in an oil embargo and heightened humanitarian requirements. Tighter financial conditions may also cause a further slowdown in the world’s economic growth, which would lower demand for oil.
Rwanda’s economy is expected to grow by 6.2% this year and 7.5% the following year, according to IMF projections, Managing Director Kristalina Georgieva stated during a visit to Kigali.
According to our projections, Rwanda’s GDP will expand by 6.2% in 2023 and then by 7.5% in 2024. We must acknowledge that COVID 19 and the conflict in Ukraine have affected Rwanda, just as they have the rest of the world, and that this has reduced our pre-COVID estimates by 1.7%,” she said reporters.
According to a forecast by the African Development Bank Group, GDP will increase by 7.2% in 2023 and 7.0% in 2024 as a result of the National Development Plan (NDP) 2021–2025’s accelerated reforms and investments, as well as the beginning of production at the Baleine gas and oil field, which was discovered in 2021–2022. Energy, building, mining, agribusiness, trade, telecommunications, and agriculture are just a few of the industries that could spur growth in addition to investment and consumption.
It is anticipated that the ongoing efforts to combat the high cost of living and the expansion of local food supplies will cause inflation to decline to 2.7% in 2024 and 3.7% in 2023. It is anticipated that increased domestic resource mobilization and improved oversight of public spending will reduce the budget deficit to 5.2% of GDP in 2023 and 4.1% in 2024. Because of increased NDP investment, the current account deficit is expected to increase to 6.1% of GDP in 2023 and 6.0% in 2024.
African Development Bank Group projection: Because of sociopolitical instability and a deteriorating security environment, real GDP growth is expected to be 3.7% in 2023 and 3.9% in 2024, which is less than the 6% average for 2017–19. The Central Bank of West African States’ tight monetary policy combined with increased food availability is predicted to lower inflation to 3.7% in 2024 and 6.1% in 2023. Thanks to increased tax revenue, the budget deficit is expected to decrease to 5.2% of GDP in 2024 and 6.1% of GDP in 2023, despite the need to address security and humanitarian issues.
It is anticipated that public debt will continue to be manageable, increasing to 62% of GDP in 2023 and 2024 as a result of more treasury bonds being issued to cover the budget deficit. In 2023 and 2024, respectively, the current account deficit is expected to decrease to 3.1% and 2.9% of GDP. A delay in restoring constitutional order, a sharp decline in security, inflationary pressures, and a decline in the price of raw materials exported (such as cotton and gold) are some potential obstacles.
Benin has experienced robust economic growth in spite of recent external shocks such as the Covid-19 pandemic and the conflict in Ukraine, thanks to its solid macroeconomic foundations. GDP growth held steady in 2022 after hitting 7.2% in 2021, declining to 5.7% (IMF). Agroindustry, construction, and port-related activity are predicted to propel economic growth to 6.2% in 2023 and 6% in 2024 (IMF). Activity will be supported by increased infrastructure spending and a broader regional recovery (The Economist Intelligence Unit).
Data and projections are provided for India based on the country’s fiscal year, which begins in April. For more background information on these numbers, keep reading below.
A study by the trade association PHD Chamber of Commerce and Industry predicted that the nominal GDP per capita in India will surpass $2800 and the country’s economy will reach a size of $4 trillion by 2024–25.
According to organizations like the World Bank and IMF, India’s economy is currently expanding at the fastest rate in the world, according to Yamini Agarwal, Director and Finance Professor at Bharti Vidyapeeth in New Delhi. India is predicted to overtake Germany and Japan to become the third-largest economy by 2027 with a GDP growth rate of 7.2%. Inflation rates have been effectively controlled by the government, which has kept them between 4.58% and 4.65%.
Three possible economic growth paths for 2024 have been presented by the Ministry of Planning and Investment, with a peak GDP growth rate of 6.5% predicted.
These estimates are based on the government’s socioeconomic development plan for the years 2021–25 as well as efforts to reach the 6.5% growth target for 2023.
Vietnam’s GDP is expected to increase by 6% under the first scenario. This estimate assumes that in 2023, global growth will be modest and that obstacles will persist in the way of the revival of international trade and investment. Due to their reliance on demand from the global market, the import, export, and industrial production sectors may not see a significant recovery, even though the domestic market and services sector may show strong growth.
The Ministry of Planning and Investment thinks that, considering the anticipated ongoing risks that the domestic and global economies may face during the recovery phase, a GDP growth target of 6% would be appropriate.
In the second scenario, the ministry projects a 6.5% GDP growth, presuming that the global and regional economies recover more quickly than projected by international organizations. A spike in trade, investment, and demand is also taken into account in this scenario. At the same time, there would probably be resurgences in business operations, exports, FDI inflow, production, and demand in the home market.
The third scenario’s GDP growth is estimated to be between 6 and 6.5%, which reflects expectations for rapid changes in both the domestic and international environments. This third scenario is the one that the Ministry of Planning and Investment prefers.
Although there is growing hope for an economic recovery, many organizations and experts are still pessimistic about Vietnam’s economic future.
The Asian Development Bank revised down its estimates for the Vietnamese economy in mid-July, cutting its 6.8% to 5.8% growth rate for 2023 and 6.8% to 6.2% growth rate for 2024.
Similar to this, the World Bank predicted in early April that Vietnam would grow at a moderate rate of 4.7% in 2023, 5.5% in 2024, and 6% by the year 2025.
Average growth 2022-2026: 25.8%
Over the next few years, Guyana’s economy will grow at the fastest rate by far. The positive projections are the result of an oil bonanza: Oil production increased from almost nothing in 2019 to over 100,000 barrels per day (bpd) in 2021. As new projects come online, the World Bank projects that output will rise to over 400,000 bpd by 2024. The most recent oil discovery was made in October 2022, among many others that have occurred recently. Public spending should be supported by the resulting surge in fiscal revenue. This should help the non-oil economy, along with the government’s local content policy that favors Guyanese people and businesses in the energy sector. That being said, the outlook is fraught with danger. The growing energy industry may cause cronyism, undermine institutions, and take resources away from services and manufacturing. Protests and ethnic tensions are additional clouds in the sky.
Average growth 2022-2026: 11.9%
Over our forecast horizon, Macao, a special administrative region of China, is expected to grow at the second-fastest rate in the world. But rather than reflecting strong underlying growth prospects, this will primarily reflect a base effect after one of the steepest pandemic-related downturns in history. Macao’s economy has been severely damaged by China’s zero-tolerance Covid-19 policy and border restrictions because the region primarily depends on tourism and gambling. Strong growth predictions for the upcoming years are contingent on China’s Covid-19 policy eventually being loosened and a subsequent increase in the number of foreign visitors arriving in the country. The nation’s dependence on gambling as its only industry and on tourists arriving from the mainland are risk factors.
Average growth 2022-2026: 7.7%
Similar to Macao, Fiji is heavily reliant on tourists from other countries, especially those from Australia and New Zealand. Consequently, at the height of the pandemic in 2020, both Australia and New Zealand imposed stringent quarantine regulations, which caused the economy to contract by more than 15% of GDP. Then, in 2021, Fiji saw another, milder contraction. As tourism begins to pick up, this sharp decline has produced a favorable base of comparison that will flatter growth over our forecast period. Arrivals of visitors fell by more than half in H1 2022 compared to pre-pandemic levels. Risk factors for the nation include its small current account deficit, high public debt, susceptibility to natural disasters, and narrow economic base.
Average growth 2022-2026: 7.6%
In the upcoming years, Niger’s economy will gain from increased oil production and exports. Specifically, it is anticipated that the nearly two thousand kilometer oil pipeline to the port of Seme in Benin will begin operations in 2019. Support will also come from the Kandadji Dam’s construction and eventual completion. Nevertheless, at the end of our forecast horizon, the nation will still rank among the world’s poorest. Furthermore, GDP per capita growth will be noticeably less impressive than headline GDP growth given the over 3% annual population growth. There are many risks, such as social unrest, political instability, climate change, attacks by jihadi groups, and higher prices for agricultural inputs.
Average growth 2022-2026: 6.9%
Libya’s economy, which is heavily dependent on oil exports, is predicted to grow rapidly in the upcoming years due to rising energy output and persistently high crude prices. That being said, this is probably dependent on the political climate improving. The nation is currently divided between two rival governments, one based in Tripoli and the other in Sirte, as a result of the promised general elections from last December not being held. Earlier this year, clashes between the supporters of the two governments caused disruptions to oil production. An upside risk is that early elections might enable the nation to unite under a single administration, increasing investment and oil production. On the other hand, there is a risk that a protracted standoff between opposing governments will worsen the situation by raising the possibility of more violent conflict and economic instability.
It is not surprising that Asia and Africa will have the top ten fastest growing economies in 2024. These are mostly small countries with small economies that have little impact on the regional and global economies.
We can also easily see that this rapid economic growth is primarily due to oil and gas, tourists, and other unsustainable factors. As a result, the above economic growth is merely a flash in the pan that will soon fade.
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