The Fastest Growing Economy in the World
The world as we know it today is a complex and ever-changing place, and economic growth is an important factor shaping the global economy. For this reason, it is important to continually keep an eye on the fastest growing economies in the world and the trends that influence them. Whether it’s understanding the future of our own country or looking for opportunities abroad, understanding the biggest economies around the world provides a powerful insight into the future of the global economy.
In this article, we’re exploring the fastest growing economy in the world. We’ll cover the sources of their growth, how their burgeoning economy is impacting other countries, and how others would do well to learn from their example.
What is GDP?
Before diving into the nations with the fastest growing economies, let’s define GDP (Gross Domestic Product). GDP is the widely accepted measure of the economic output and is used to compare the economic performances of different countries. It is calculated by taking the total value of all goods and services produced in a country after deducting the consumption of fixed capital.
GDP can measure the total economic output of a particular country. It’s also one of the most commonly used factors in measure economic growth.
Which is the Fastest Growing Economy in the World?
Now that we have a better understanding of GDP, it’s time to take a look at the fastest growing economies in the world.
- China
For the past few decades, China has dominated the discussion when it comes to the fastest growing economies in the world. For many years, China has continued to produce impressive growth rates, far outstripping the likes of other developing countries like India and Brazil.
According to the IMF, China’s economy grew by an impressive 6.4% in 2018, with that figure rising to 6.5% in 2019.
- India
India has been quickly following suit too, with their real GDP growth reaching 7.2% in 2019, according to the IMF.
One of the major drivers of the country’s rapid growth is its massive workforce. India is estimated to have around 537 Million people employed in 2017. That is more than any other country in the world with the exception of China, which puts India in a strong pole position to continue to grow economically.
- Ethiopia
Ethiopia is another African powerhouse which has been experiencing impressive economic growth in recent years. Its economy grew by an incredible 8.3% in 2019, according to the IMF.
The country currently has some of the highest economic growth rates in the world, even if its infrastructural development is lacking. This is partly due to Ethiopia’s push for increased investment and manufacturing, as well as its strong agricultural sector.
- Other Fast-growing Economies
While not the fastest-growing, other economies around the world are experiencing impressive growth. These include:
a. Vietnam – 6.3%
b. Bangladesh – 8.1%
c. Uganda – 6.7%
d. Myanmar – 6.4%
e. Qatar – 3.2%
f. Iran – 4.4%
g. Laos – 6.7%
h. Nepal – 7.9%
i. Sri Lanka – 3.1%
Impact of Fast Growing Economies
The rapid economic development of the world’s fastest growing economies is having a very positive effect on the global economy, creating a wave of new opportunities and investment.
The Chinese Economy
Nowhere has this been more evident than in China. The rise of this superpower has been astounding, leading to immense development for the country, a stronger presence in global politics, and stronger partnerships around the world.
In addition, this Chinese growth has created export opportunities for countries with strong relations with China. This has particularly benefitted countries like Vietnam and Bangladesh, who have become more attractive export destinations for Chinese companies to move production to.
India and Ethiopia
In a similar fashion to China, India and Ethiopia’s economies are in a stage of advanced growth. Their improved economic standing has allowed them to invest in infrastructure and education to improve the lives of their citizens.
Further, their growth is inspiring other developing nations to seek out the same economic success. This is especially true for African countries, who can look to India and Ethiopia as examples of the potential of their economies.
The world’s fastest growing economies are having a positive effect on the global economy. While China’s growth has been particularly strong, India and Ethiopia are also impressing. In addition, other countries are experiencing growth too, helping to drive global economic output.
The success of these countries should encourage other nations to invest in their own economies and seek out the potential for improved economic development. After all, with the right investments, any nation can reach the same heights as the world’s fastest growing economies.
