In a world shaped by constant innovation and evolving market conditions, the pace of economic growth is a critical measure of success for countries. The year 2024 has witnessed remarkable transformations in several nations, with a few experiencing remarkable economic expansions due to several factors including oil discoveries, tourism advancements and trade growth, propelling them to become among the fastest-growing economies in the world.
The growth of these countries and regions offers valuable insights into global trends and factors impacting economic growth, from technological advancement to shifting geopolitical dynamics.
Why does tracking economic growth matter?
Gross domestic product (GDP) is the most common single measure of a country’s overall economic activity. It represents the total value of final goods and services produced within a country during a specified time period. But economic growth is not just a statistic; it’s a measure of progress and potential.
A growing economy signals improving living standards, job creation and greater access to essential services like education and healthcare. Tracking this growth helps identify the strengths, weaknesses and opportunities of economies. GDP helps policymakers, investors and businesses make decisions by understanding an economy’s health. It can be used to compare different countries and regions.
How is economic growth measured?
Economic growth refers to an increase in the size of a country’s economy over a period of time. The size of an economy is typically measured by the total production of goods and services in the economy, which is called GDP.
Economic growth can be measured in nominal or real terms. Nominal economic growth refers to the increase in the dollar value of production over time which includes changes in both the volume of production and the prices of goods and services produced.
Meanwhile, real economic growth refers to increases in the volume produced only, which takes away the effect of price changes. This measure better reflects how much a country is producing at a given time, compared with other points in time.
Top 10 fastest-growing economies in 2024
In its latest World Economic Outlook (October 2024), the International Monetary Fund (IMF) measured the annual real GDP growth of global economies, highlighting some that will likely see the fastest growth this year. Here is an overview of the 10 economies that are expected to see the fastest growth this year:
1. Guyana: 43.8 percent
Guyana is expected to be the fastest-growing economy this year. The IMF expects the country’s real GDP to grow by a remarkable 43.8 percent in 2024. The country benefits from fertile agricultural lands, valuable mineral resources like bauxite and gold, extensive tropical forests that cover 80 percent of the country, and recently discovered large offshore oil and gas reserves.
Guyana’s GDP per capita is rapidly increasing due to oil production, which began in 2019 and reached 278,000 barrels per day (bpd) in 2022. The country will likely remain one of the fastest growing economies with double-digit growth rates in 2023 and 2024 as additional oil fields start operation. Historically, Guyana’s GDP per capita was among the lowest in South America but extraordinary economic growth since 2020, averaging 42.3 percent over the last three years, brought GDP per capita to over $18,199 in 2022, from $6,477 in 2019.
2. Macao SAR: 10.6 percent
Macao is part of the People’s Republic of China and has had the status of Special Administrative Region (SAR) since 1999. The IMF expects the region’s real GDP to grow 10.6 percent this year.
After several years of growth, the economy went into a deficit of 2.6 percent in 2019 due to a decline in tourism revenues following the outbreak of the COVID-19 pandemic. The economy fell further in 2020 but witnessed an 80.5 percent surge in 2023, reaching a per capita GDP of $69,700, according to data from the Statistics and Census Service. The notable growth, mainly fueled by the resurgence of tourism, propelled the GDP to 80 percent of the level achieved in 2019.
3. Niger: 9.9 percent
Niger’s economy is dependent largely on agriculture. The country faced a political crisis in 2023 which reduced GDP growth to 2.5 percent, according to the African Development Bank. However, the country’s economic growth in 2024 will recover with the sanctions lifted in February 2024 and the resumption of financing. The IMF expects the real GDP of Niger to grow 9.9 percent this year with the support of oil production, exports and improvements in agricultural output due to an expansion in irrigated land.
4. Samoa: 9.7 percent
Samoa, an island country in Oceania, has witnessed a strong growth rebound over the last two years and has emerged from the pandemic with enhanced economic buffers, ranking it among the world’s fastest-growing economies in 2024. The IMF expects Samoa’s real GDP to grow 9.7 percent this year. Following three years of contraction during the pandemic, GDP growth has rebounded, reaching 9.4 percent in FY2024 due to the swift recovery in tourism, said the IMF.
Historically, the main productive sectors of Samoa’s economy are agriculture and tourism. The economy also depends heavily on overseas remittances and official development assistance. The service sector accounts for over half of the GDP and employs approximately 65 percent of the formally employed labor force.
5. Palau: 8.1 percent
The Republic of Palau is a small island nation of about 350 islands in the western Pacific Ocean, with an estimated population of about 18,000 people. The government is the country’s largest employer, with approximately 30 percent of the workforce. The tourism sector is also Palau’s biggest economic driver, contributing around 40 percent to the GDP. The IMF expects the country’s real GDP to grow by 8.1 percent this year, making it one of the fastest-growing economies in the world.
Apart from tourism, commercial industries including wholesale and retail trade, business services, local commercial fisheries, and construction, also support the country’s economy.
6. Georgia: 7.6 percent
Georgia has made notable gains in income growth and poverty reduction over the past decade. As a result of sound macroeconomic management, gross national income per capita increased from $3,036 in 2010 to $5,679 in 2023. The job market experienced a strong recovery, with unemployment falling from 20.6 percent in 2021 to a record low of 13.7 percent in June 2024, supported by the fast growth rates in recent years. The IMF expects the country’s real GDP to grow by 7.6 percent this year, ranking it among the fastest-growing economies in the world.
7. India: 7 percent
India is one of the fastest growing economies of the world and is poised to continue on this path, with aspirations to reach high middle-income status by 2047. Despite challenging global conditions, India remains among the world’s fastest-growing economies, growing at a rapid rate of 8.2 percent in FY23-24. The IMF expects the country’s real GDP to grow by 7 percent this year.
The World Bank attributes India’s growth to public investment in infrastructure and rising household investments in real estate. The country’s manufacturing sector also grew by 9.9 percent, while services remained resilient, compensating for the underperformance in agriculture.
8. Rwanda: 7 percent
Rwanda aspires to become a middle-income country by 2035 and a high-income country by 2050. It plans to achieve this through the implementation of the second National Strategies for Transformation. The IMF expects the country’s real GDP to grow by 7 percent this year, making it one of the fastest-growing economies in the world. GDP growth will likely maintain momentum in 2025-26 amid the recovery in global tourism, new construction projects in addition to manufacturing activities.
9. Tajikistan: 6.8 percent
Tajikistan has demonstrated robust economic growth, with a significant expansion of 8.3 percent in 2023 and 8.2 percent in early 2024. A rise in revenue from gold exports and public infrastructure spending significantly contributed to this growth. The IMF expects Tajikistan’s real GDP to grow by 6.8 percent this year, ranking it among the world’s fastest-growing economies. Agriculture also constitutes the largest sector of Tajikistan’s economy and contributes to 22.6 percent of the country’s GDP and 45.7 percent of the Tajik labor force.
10. Benin: 6.5 percent
Benin’s geographic position at the intersection of two important regional corridors – the Abidjan-Lagos corridor and the Cotonou-Niamey corridor – makes it an important commercial and tourism crossroads. Growth remained strong in 2023 and the first two quarters of 2024, supported by buoyant industrial and agricultural production as well as resilience in services. The IMF expects Benin’s real GDP to grow by 6.5 percent this year, making it one of the world’s fastest-growing economies.
Challenges facing the world’s fast-growing economies
Like all economies globally, the world’s fast-growing economies face multiple global challenges including climate change, pandemics, inflation and conflict. In recent years, the journey of economic growth has been eventful, starting with supply-chain disruptions in the aftermath of the pandemic, an energy and food crisis triggered by the Russia-Ukraine war, a considerable surge in inflation and a global monetary policy tightening.
Dependence on one source of income is another challenge facing some of the smaller economies. For instance, the tourism sectors in Macao SAR, Samoa and Palau make up a significant portion of their economies, making them more vulnerable to global risks like conflict and pandemics. Meanwhile, countries like Guyana and Niger depend heavily on their oil production and exports, making them vulnerable to market volatility, geopolitical tensions and trade disruptions.
Global economic outlook
The global economy will remain resilient despite significant challenges, according to the OECD’s latest economic outlook. The outlook projects global GDP growth of 3.3 percent in 2025, up from 3.2 percent in 2024, and 3.3 percent in 2026. Meanwhile, the IMF expects global growth to remain stable yet underwhelming at 3.2 percent in 2024 and 2025.
Notable revisions have taken place since April 2024, with upgrades to the forecast for the United States offsetting downgrades to those for other advanced economies, in particular, the largest European countries. Likewise, in emerging markets and developing economies, disruptions to the production and shipping of commodities — especially oil — conflicts, civil unrest and extreme weather events have led to downward revisions to the outlook for the Middle East and Central Asia and that for sub-Saharan Africa.
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FAQs:
What is the fastest-growing economy in 2024?
Guyana is expected to be the fastest-growing economy this year. The IMF expects the country’s real GDP to grow by 43.8 percent in 2024.
How is economic growth measured?
Economic growth refers to an increase in the size of a country’s economy over a period of time. The size of an economy is typically measured by the total production of goods and services in the economy, which is called GDP. Economic growth can be measured in nominal or real terms.
What are the key factors supporting fast-growing economies?
Several factors are supporting the rise of fast-growing economies around the world including the recovery following the COVID-19 pandemic, easing monetary conditions, and slowing global inflation.
Which sectors drive economic growth in the fastest-growing economies?
Among the key sectors supporting countries’ growth include agriculture, mineral resources, tourism, manufacturing, and oil and gas reserves.
What challenges do fast-growing economies face?
The world’s fast-growing economies face multiple global challenges including climate change, pandemics, inflation, conflict and reliance on one sector to support growth.
