Although the world still bears the heavy burden of the coronavirus and its variations, many countries have nevertheless managed to tackle the effects of the pandemic, bringing their manufacturing and export sectors back to life, and restoring jobs. The year 2021 offered a ray of optimism and IMF statistics for 193 countries in 2021 showed that 170 were forecasting a GDP increase of 1% or higher. Although since the end of February of 2022 the international economy has been hit by the Russian invasion of Ukraine and the war that followed, it is a little too early to analyze the effects of this.
So, let’s dive into the topic of the fastest-developing countries in the world.
Here are the five nations and regions that registered the fastest growth in 2021 according to the International Monetary Fund, and the forecast for 2022 remains bright.
Guyana
Population: 790,000
GDP per capita: US$9,374.8 (WB, 2021)
GNI: US$ 7.41 billion
This country’s current priorities include investments in infrastructure and the revitalization of state-owned businesses although the pressure from inflation and currency appreciation are projected to increase. Immunization-based coronavirus control is advancing slowly.
Ghana is one of a select few nations that managed to avoid experiencing an economic decline in 2020 due to the introduction of its oil industry which caused Guyana’s economy to experience a period of rapid expansion, registering a growth of 43.5%. Thus, the country’s progress managed to outweigh the negative effects of the COVID-19 pandemic.
It’s worth mentioning that Guyana is rich in natural resources with some of its top exports being gold, sugar, lumber, and shrimp.
Moreover, even though the country does not boast the biggest oil production in the world, by 2025 with a daily output of 800,000 barrels, Guyana is expected to generate more oil per person than any other country in the world.
Using its vast offshore oil reserves, the government aims to finance developments in the mining, tourist industry and agriculture amongst others.
The World Bank predicts that in 2022 the nation’s economy will register a 48% growth – the fastest rate among all countries.
Macao (Special Administrative Region)
Population: 658,000
GDP per capita: US$45,421.6 (WB, 2021)
GNI: US$30.35 billion
This high-income region has a modest but reliable economy. The rebound in Macao SAR is set to continue, led by the revival of local demand and the slow return of international tourists. Growth is anticipated to increase, helped by rising investment associated with the granting of additional gaming concessions.
Macao is of particular interest to the region’s biggest and closest neighbor, China, which prohibits casinos and gambling. At the same time, the zero-COVID policy in force in China will prevent the region’s economy from recovering to its pre-pandemic level until late 2024.
Almost 20 years after liberalizing the gaming industry, today the region is home to 42 casinos which generate a gross revenue of over USD10 billion. However, the COVID-19 impact has hit Macau’s economy hard, with the region still struggling with low numbers of visitors in 2022.
The region’s GDP is anticipated to increase to 37.6% in 2022 and 26% in 2023, according to the IMF’s revised 2022 predictions.
Barbados
Population: 287,700
GDP per capita: US$17,033.9 (WB, 2021)
GNI: US$4.8 billion
An 11% growth in this country’s economy is anticipated for 2022, thanks mainly to a strong tourism recovery that is anticipated to reach pre-pandemic levels by 2024.
Despite this, the future is still very uncertain and there are significant concerns such as that associated with rising global commodity prices as a result of Russia’s invasion of Ukraine which are fueling inflation.
Despite the fact that there remains a great deal of uncertainty in the world, there are a number of factors that could help this island country to accelerate its economic rebound. This includes boosting and maintaining tourist arrivals, speeding up the implementation of investment projects, improving the ease of doing business, and strengthening the private sector.
St. Kitts and Nevis
Population: 53,546
GDP per capita: US$18,230.1 (WB, 2021)
GNI: US$0.993 billion
According to the IMF, in 2022 this country holds 4th position in the list of the fastest growing economies in the world and, to encourage additional foreign investment, the government is working towards creating a favorable economic environment.
It is interesting to note that the tax rates of St. Kitts and Nevis are some of the most lenient in the world. Individuals are not subject to income tax nor gift and inheritance taxes; these benefits are what make this region a true tax haven.
However, the nation is still susceptible to external shocks including the effects of climate change, disasters, and global economic downturns.
In 2022, the real GDP is expected to expand by 10%, effectively reversing this drop, according to the IMF. Key industries for investment have been determined and among these are real estate, tourism, agriculture, IT, and financial services.
St. Lucia
Population: 184,400
GDP per capita: US$9,571 (WB, 2021)
GNI: US$1.78 billion
The COVID-19 pandemic is still having an effect on this nation’s economy. The Eastern Caribbean Central Bank predicts 12.1% growth in the national economy by 2022 while the IMF foresees a 10% growth, following a minor economic recovery in the nation.
To encourage greater foreign investment in St. Lucia, the government is dedicated to fostering a friendly and open economic environment.
The potential for investment is predominantly concentrated on tourist and hotel development, as well as other industries including ICT and manufacturing.
The fastest growing economies – 2030 predictions
According to projections, by 2030 the economies of China, Vietnam, Uganda, Indonesia, and India will have registered the fastest growth. This forecast was made by researchers from the Growth Lab at Harvard University who published their latest data in the Atlas of Economic Complexity.
China tops the list
Long-term development is anticipated to accelerate as the pandemic’s impacts fade. Even though estimates reveal that development is decreasing compared to what the country accomplished over the past few years, China is still predicted to have the fastest-developing economy per capita.
According to experts, Vietnam and China will enjoy the greatest growth over the next few years because they have successfully managed to diversify their production into more complex industries.
Vietnam, Cambodia, Laos, and Ethiopia are the developing nations that have advanced the most in terms of complexity.
Several economies from Eastern Africa, including Uganda, Tanzania, and Mozambique, are predicted to show rapid growth. However, this will for the most part be the result of population growth rather than an increase in economic complexity.
Final word:
With the dramatic problems that occur in the world today, it is difficult to predict which countries will be able to withstand economic and social shocks and exhibit sound economic growth. In 2022, the IMF presented those countries that registered some of the fastest economic developments although the new waves of COVID-19 and conflicts have had serious impacts. By 2030, according to other forecasts, this list might see some major changes.
