September 01, 2015

The 10 Fastest Growing Economies in the World

Over the past few decades, the world has been closely following the growth of economies such as India and China. However, these countries are not the only ones with enormous growth rates. Based on forecasts from the World Bank’s Global Economic Prospects of Compounded Annual Growth Rates (CAGR) from 2014 and 2017, there are several other countries that are growing at breakneck speeds.

10. Mozambique

The projected 2014-2017 GDP CAGR of Mozambique is 7.3 percent. The country has attracted large investment projects in natural resources, which indicates that the country’s high growth rates will continue. Some economic analysts think that Mozambique will be able to generate revenues from natural gas and coal within five years; today, the majority of the country works in agriculture, and over half of the population is below the poverty line.

9. Bhutan

The projected 2014-2017 GDP CAGR for Bhutan is 7.55 percent. The country has a small and relatively undeveloped economy that is heavily reliant on hydropower, agriculture, and forestry. Bhutan exports a large amount of hydropower to India.

8. India

India’s 2014-2017 GDP CAGR is projected at 7.57 percent. The major source of the country’s economic growth comes from the services industry, which accounts for nearly two-thirds of its output with less than one-third of its labor force.

7. Papua New Guinea

Papua New Guinea is predicted to have a 2014-207 GDP CAGR of 7.6 percent. According to the World Bank, 85 percent of the population is employed in agriculture, and a small sector exports natural resources that include gold, copper, and oil.

 6. Cote d’Ivoire (Ivory Coast)

The 2014-2017 GDP CAGR for Cote d’Ivoire is projected to be 7.8 percent. Currently, about two-thirds of the labor force works in agriculture-related industries. Cote d’Ivoire is the world’s largest producer and exporter of cocoa beans, and is also a substantial contributor to the global coffee and palm oil industries.

5. Uzbekistan

Uzbekistan, over the past few years, has been slowly transitioning into a market-based economy. It has a projected 2014-2017 GDP CAGR of 7.87 percent. The country is the world’s fifth-largest cotton exporter, and also has natural gas and gold.

4. Myanmar

Myanmar has a projected 2014-2017 GDP CAGR forecast of 8.3 percent. It is one of the poorest countries in Southeast Asia, but began an economic overhaul in 2011 in hopes of entering the global economy. Myanmar has a young labor force and natural resources, and has attracted a high amount of foreign investment in the past few years.

3.  Democratic Republic of Congo

The Democratic Republic of Congo is expected to have a 2014-2017 GDP CAGR of 8.62 percent. The country has a huge wealth of natural resources that it has yet been able to efficiently monetize due to systemic corruption, conflict, and political instability.

2. Turkmenistan

The 2014-2017 GDP CAGR forecast for Turkmenistan is 9.07 percent. The economy relies heavily on its cotton and gas industries. Turkmenistan has the fourth-largest known gas reserve in the world, and recently started exporting gas to China and may soon start shipping gas to Europe. However, the country’s growth is hindered by its extremely corrupt economy, reluctance to adopt market reforms, and poor educational system.

1. Ethiopia

Ethiopia has the highest 2014-2017 GDP CAGR estimate at 9.7 percent. The country’s economy is mostly agriculture based, but the government has recently made a push to diversify into manufacturing, energy generation, and textiles. According to the World Bank, Ethiopia has seen the highest GDP growth, but their per capita income remains among the lowest in the world.