It is always interesting to look at economic growth each year to see which countries are emerging as powerful economies.
Importance of Growth For Developing Nations
Economic growth is hugely important to developing nations because this enables governments to spend more on public services, create jobs, improve the standard of living and create political stability. This is increasingly important in areas which crave stability and often struggle with issues like poverty, crime and corruption. Therefore, those that are going through economic growth right now are on the right path and the future looks bright for a number of developing nations.
How Economic Growth is Measured
In terms of how economic growth is measured, this is done through assessing the increase in a country’s total output or real Gross Domestic Product (GDP) and it is developing countries that tend to experience faster economic growth than developed economies like the USA.
Countries Experiencing the Highest Growth
So, what are the countries that are currently experiencing economic growth? Interestingly, it is Rwanda that is forecasted to see real growth averaging 7.7% between 2019 to 2024 according to Focus Economics. Of course, the economy has come a long way since the genocide of the early 90s largely due to effective governance with policies that reward entrepreneurial activities.
After Rwanda, Bangladesh comes in second with 7.5% largely due to the rapid growth in affordable garment manufacturing. Next comes Senegal at 7.3% due to the diversification of the economy and impressive new energy facilities. Ethiopia is next with growth predicted to average 7% between 2019 and 2024, partly due to the State-led growth model along with significant Chinese funding. Rounding out the top 5 is Myanmar with 6.8% due to economic liberalization and integration into the global economy, which will only continue in the years to come.
How These Economies Have Grown
It is fantastic to see such strong economic growth in these areas, many of which have had problems in the past including famine, political instability, corruption and poverty. Growth in these regions is largely a product of foreign investment, integration with the global economy, easing tensions and political stability and investment in infrastructure. Such factors have been key in the development in recent years and this should only continue as they experience further economic growth.
Innovation-Driven
Historically, developing nations have focused on manufacturing and industrial-driven economic growth but many of today’s fastest-growing economies have taken a different path. If you look at places like South Korea and Singapore, these nations adopted a technological and innovative-driven model which allowed them to experience rapid economic growth. These are now places which are amongst the wealthiest in the world and a hub for businesses and investors.
Investing
In terms of investing, it is always worth keeping an eye on nations which are experiencing fast economic growth when it comes to foreign exchange markets. Furthermore, as developing economies continue to grow, the potential for capital ventures becomes more attractive. There are different investment opportunities in each region so it is vital that careful socio-cultural and economic analysis is undertaken to highlight the best investment opportunities.
It is fascinating to see what countries are predicted to have the highest economic growth in the years to come as it allows you to glimpse into what the future might look like. Plus, it is positive to see developing economies that are able to grow to potentially become significant players on the global stage.