Best of 2015: Which is the fastest-growing economy in the world?

Economics

Global

Growth

The 13 fastest-growing economies in the world

By Elena Holodny

Jun 16 2015

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China’s crazy growth has been one of the biggest stories over the past several decades.

But the Chinese economy certainly isn’t the only one posting huge growth rates.

We compiled a list of 13 countries with the highest projected compounded annual growth rate (CAGR) from 2014 through 2017 based on the forecasts from the World Bank’s Global Economic Prospects.

Keep in mind that the fastest-growing economies typically aren’t among the largest, most developed ones. In fact, most of these countries suffer from high income inequality, low levels of per capita gross domestic product, elevated political instability, and rampant corruption.

13. China

2015 GDP: +7.10%

2016 GDP: +7.00%

2017 GDP: +6.90%

2014-2017 GDP CAGR: +7.10%

Economy: China is a manufacturing powerhouse and exporter, and many believe that its economy will surpass that of the US within the next decade. The government faces major problems, however, as the country transitions into a consumption-based economy. Additionally, per capita income is below the world average.

Source: World Bank, CIA World Factbook

12. Rwanda

2015 GDP: +7.00%

2016 GDP: +7.00%

2017 GDP: +7.50%

2014-2017 GDP CAGR: +7.12%

Economy: Ninety percent of the population works in subsistence agriculture or mineral agroprocessing, while tourism, minerals, coffee, and tea round out Rwanda’s economy. Though the country has taken significant steps forward since the 1994 genocide, 45% of the population still lives below the poverty line.

Source: World Bank, CIA World Factbook

11. Tanzania

2015 GDP: +7.20%

2016 GDP: +7.10%

2017 GDP: +7.10%

2014-2017 GDP CAGR: +7.15%

Economy: Tanzania has recently seen high growth rates because of gold production and tourism. The economy also runs on telecommunications, banking, energy, and mining, as well as agriculture. In terms of per capita income, however, the country is one of the poorest in the world.

Source: World Bank, CIA World Factbook

10. Mozambique

2015 GDP: +7.20%

2016 GDP: +7.30%

2017 GDP: +7.30%

2014-2017 GDP CAGR: +7.30%

Economy: Mozambique has attracted large investment projects in natural resources, which means the country’s high growth rates should continue. Some analysts believe that Mozambique might be able to generate revenues from natural gas, coal, and hydroelectric capacity greater than its donor assistance within five years.

But the vast majority of the country works in subsistence agriculture, and over half the population remains below the poverty line.

Source: World Bank, CIA World Factbook

9. Bhutan

2015 GDP: +7.90%

2016 GDP: +8.40%

2017 GDP: +7.00%

2014-2017 GDP CAGR: +7.55%

Economy: Bhutan has a small and relatively undeveloped economy that relies on hydropower, agriculture, and forestry. It exports a large amount of hydropower to India, which has the potential to “spur sustainable growth” in the next few years — as long as Bhutan works to fix its “chronic delays in construction.”

Source: World Bank, CIA World Factbook

8. India

2015 GDP: +7.40%

2016 GDP: +7.80%

2017 GDP: +8.00%

2014-2017 GDP CAGR: +7.57%

Economy: Prime Minister Narendra Modi’s India has received high marks from analysts, even with delayed reforms. The services industry is a major source of India’s economic growth, accounting for nearly two-thirds of its output with less than one-third of its labor force. Yet problems such as corruption, poverty, and discrimination against women and girls continue to hold back the country.

Source: World Bank, CIA World Factbook

7. Papua New Guinea

2015 GDP: +16.00%

2016 GDP: +5.00%

2017 GDP: +2.40%

2014-2017 GDP CAGR: +7.60%

Economy: Eighty-five percent of the population works in agriculture, and a small sector exports natural resources including mineral deposits such as gold, copper, and oil. But the government has numerous problematic areas, including security for investors, poor investor confidence, the privatization of state institutions, and the restoration of integrity to state institutions.

Source: World Bank, CIA World Factbook

6. Cote d’Ivoire

2015 GDP: +8.00%

2016 GDP: +7.70%

2017 GDP: +7.50%

2014-2017 GDP CAGR: +7.80

Economy: About two-thirds of the population works in agriculture-related industries. The country is the world’s largest producer and exporter of cocoa beans and is also a major player in the coffee and palm-oil industries.

Source: World Bank, CIA World Factbook

5. Uzbekistan

2015 GDP: +7.60%

2016 GDP: +7.80%

2017 GDP: +8.00%

2014-2017 GDP CAGR: +7.87%

Economy: Uzbekistan has been slowly transitioning from its Soviet past to a market-based economy. It’s the fifth-largest cotton exporter and also has natural gas and gold. Notably, the country is working toward enforcing bans on child labor in its cotton harvesting.

Source: World Bank, CIA World Factbook

4. Myanmar/Burma

2015 GDP: +8.50%

2016 GDP: +8.20%

2017 GDP: +8.00%

2014-2017 GDP CAGR: +8.30%

Economy: Myanmar, one of the poorest nations in Southeast Asia, started an economic overhaul in 2011 in an attempt to reintegrate into the global economy. The country has a young labor force and natural resources, and it has attracted loads of foreign investment.

Living standards for the majority of population, however, have not improved much.

Source: World Bank, CIA World Factbook

3. Democratic Republic of the Congo

2015 GDP: +8.00%

2016 GDP: +8.50%

2017 GDP: +9.00%

2014-2017 GDP CAGR: +8.62%

Economy: The Democratic Republic of Congo has huge natural-resource wealth, which it hasn’t been able to efficiently monetize because of systemic corruption, conflict, and political instability. That said, its economic is slowly recovering since the tumultuous 1990s.

Source: World Bank, CIA World Factbook

2. Turkmenistan

2015 GDP: +8.00%

2016 GDP: +9.00%

2017 GDP: +9.00%

2014-2017 GDP CAGR: +9.07%

Economy: Turkmenistan’s extremely corrupt economy relies on two major industries: cotton and gas. The former Soviet republic, which has the fourth-largest known gas reserves in the world, recently started sending its gas to China, and it may even start shipping gas over to Europe.

But “prospects in the near future are discouraging,” however, “because of endemic corruption, a poor educational system, government misuse of oil and gas revenues, and [the capital’s] reluctance to adopt market reforms,” according to the CIA Factbook.

Source: World Bank, CIA World Factbook

1. Ethiopia

2015 GDP: +9.50%

2016 GDP: +10.50%

2017 GDP: +8.50%

2014-2017 GDP CAGR: +9.70%

Economy: Ethiopia’s economy is mostly agriculture-based, but the government has made a push to diversify into manufacturing, textiles, and energy generation. But while the country has seen and (per the World Bank) will continue to see high GDP growth, per capita income remains ones of the lowest in the world.

This article is published in collaboration with Business Insider UK. Publication does not imply endorsement of views by the World Economic Forum.

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Author: Elena Holodny is a writer at Business Insider.

Image:  A general view shows part of the capital Addis Ababa at night, Ethiopia. REUTERS/Siegfried Modola.

Posted by Elena Holodny - 10:14

All opinions expressed are those of the author. The World Economic Forum Blog is an independent and neutral platform dedicated to generating debate around the key topics that shape global, regional and industry agendas.