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For many years, China has been at the pinnacle of the fastest growing economies in the world. Nonetheless, emerging and developing countries in the East have always dominated the list as they have a higher potential to grow and have been a hub for businesses and investors in recent years due to the quality of resources they possess, cheap labour and economic reforms, which meet international standards. The list below are some of the fastest growing countries in the world:
India has recently developed into an open market economy and has welcomed investors, businesses and tourists from around the world with open arms. The country has taken significant measures lately through deregulation, further support towards businesses and start-ups, tax incentives and economic diversification, with a focus on the services industry. India’s major strength lies in the dominance of its new government, extensive international relations and its labour force. Although the country has plenty of work to do in areas of corruption, women’s rights and poverty, India has significantly advanced in recent years and is likely to become a business and growth hub for years to come.
Expected GDP Growth rate – 7.5-7.7%
After years of dominance, India has surpassed China as the fastest growing economy in the world however China has continued to be consistent and competitive as an economy. The country also operates an open-market system and have gone through plenty of restructuring in its regulations and support towards businesses. For years, China has been the largest exporter in the world with over $2 trillion worth of exports every year. Furthermore, China has always been at the forefront of manufacturing across various sectors and is believed that the economy will surpass the USA in the years to come. However, the government needs to address significant issues as it focuses more on consumption and the latest stock market crash has dampened some of its growth.
Expected GDP Growth rate – 6.2-6.5%
Indonesia is by far the largest economy in the Southeast Asia corridor. They have extensively focused on developing and improving their infrastructure, education and healthcare and have made great efforts in reducing poverty. Furthermore, the country has a resilient economic growth due to low government debt and a strong capital and fiscal structure which aids development. The country has vowed to reduce commodity exports due to low margins and has focused more on the manufacturing industry. Latest reports state that poverty is currently as low as 11%. Furthermore, GDP per capita rose over 500% in the last decade as the country has also seen growth in retail, trade and tourism.
Expected GDP Growth rate – 5.3-5.5%
Bangladesh’s economy has grown consistently at a rate of six percent annually since the early 2000’s. The country owes this growth to the boom of the clothing and textile industry, which has led to a significant increase in exports. Furthermore, Bangladesh emerged as a source of cheap labor and a young consumer base of about 160 million (with increasing purchasing power) have led to this development.
More than half of the country’s GDP comes from the services sector, even though about 50% of the population is employed in agriculture, with rice being the largest product.
The country’s main export is garments, accounting for more than 80% of total exports and surpassing $25.0 billion in 2015.
Estimated GDP Growth: 6.2%
The Philippines has become a major contender in South-East Asia due to its focus on infrastructural development, reconstruction, increased consumer spending and most importantly, remittances into the country. A large proportion of the workforce work abroad in the Middle East and remit almost $30 billion a year into Philippines alone. As a result, the country has risen to become the 31st largest economy in the world.
Nonetheless, the Philippines still suffer from poor infrastructure in many parts of the country, which affects business and economic growth. Easy availability of credit has also led to inflating housing and consumer prices.
However, reports conclude that the country’s BPO (Business Process Outsourcing) industry would benefit the economy as many renowned BPO and IT firms, such as Accenture, operate out of the country.
Expected GDP Growth rate: 6%
Nigeria is the 30th largest economy in the world, according to the IMF. The country is the seventh most populous nation and becoming a power player in Africa’s economy. The energy sector have increased Nigeria’s GDP, due to oil reserves found in the Nile, which has attracted major players in the oil industry, bringing in massive flows of FDI into the country.
However, political and social instability has impacted the country’s performance and the government’s focus on domestic ownership of energy reserves has led many players, such as Chevron and Shell, to partially pullout of the country.
Nonetheless, Nigeria’s energy dominance is going nowhere. The country has considerable ground to make up before it can think about joining the ranks of more advanced emerging economies such as Brazil and China, but in the meantime, the country’s oil and natural gas will be a friend to investors.
Expected GDP Growth rate: 6.5%
Myanmar is currently neck to neck with the rest of the fastest growing countries in the world particularly due to digital revolution and has opened the gateway to investors entering the country. Furthermore, the country is considerably ‘resource-rich’ due to the vast supply of oil and gas reserves and plenty of land, which is likely to be put to productive use in the near future, while also being responsible for 90% of the worlds Jade production.
According to McKinsey, Myanmar has the potential to quadruple the size of its economy by 2030. Furthermore, the country is home to a vast, young population and its central geographic location has allowed the country to develop and diversify into various sectors. In order to achieve this, the country needs to reform politically and economically to reduce instability and increase optimism and growth as 85% of the economic output comes from agriculture, manufacturing, infrastructure and mining alone. Nonetheless, given Myanmar’s quality of assets, the supportive external environment and foreign relations, the country has a plenty of opportunities from which it can build.
Expected GDP Growth rate: 8-8.2%