Economic growth has traditionally been driven by the accumulation of human and physical capital, as well as the increase in productivity and creation of new goods arising from technological innovations. There are several of the fastest-growing economies in the world, with impressive GDPs.
Most of the fastest-growing economies are located in Africa, especially in sub-Saharan Africa. While a few are located in the Asia Pacific and some in the Americas. These fast-growing economies show how a continent, once synonymous in the West with poverty and inequality, is now increasing its source of economic dynamism.
Therefore, in this article, we will be listing the top 10 fastest-growing economies in the world, and everything you need to know about them.
Table of Contents
What Are The Top 5 Emerging Market Economies In The World?
An Emerging market economy is generally considered an economy that is transitioning into a developed market economy. That is, it has a growing per capita income, an established financial system infrastructure, rapid GDP growth, and increasing debt and equity markets.
The top 5 major emerging markets in the world are Brazil, Russia, China, India, and South Africa. These emerging market economies make good investments due to their propensity for rapid growth compared to more mature markets.
What Are The Top 10 Largest Economies In The World?
Economic growth is an increase in the production of goods and services in an economy. Increase in human capital, capital goods, technology, and labor force are key factors to a large economy.
The size of the overall economy is typically measured by its GDP or Gross Domestic Product. Which is the value of all final goods and services produced in a country in a given year.
Here are the top 10 largest economies in the world:
- United States
- China
- Germany
- Japan
- India
- United Kingdom
- France
- Italy
- Canada
- Russia
Top 10 Fastest Growing Economy In The World
Below is a list of fastest-growing economy in the world:
1. Guyana
With 16.3% GDP, Guyana’s GDP will be the fastest growing economy in the world. A large and sudden expansion in the oil sector and production has driven most of this growth. Guyana began extracting oil in 2020.
From 2020 to 2023, the country’s oil sector grew 425%, which makes it a key contributor to global crude oil supply growth. Also, the ensuing boom in fiscal revenue will fuel the public spending required to meet the country’s development needs.
2. Niger
Niger’s real GDP is driven primarily by the expansion of oil production and exports through the Niger-Benin pipeline. The country’s GDP growth is expected to average 6.5% over 2025 – 2026, thereby making it one of the fastest-growing economies in the world.
Niger’s GDP has increased through oil production, export (increasing in 2025), and improvements in agricultural output based on an expansion in irrigated land.
3. South Sudan
South Sudan is another fastest growing economy in the world with a 14.6% GDP. Although South Sudan’s economy is now clouded by crippling shocks to its over-dependence on the oil sector, it states the need for diversification.
Its Real GDP contracted by an estimated 0.4% in 2022/2023, reflecting the easing of economic challenges resulting from the conflict in Sudan.
4. Libya
Libya’s double-digit economic growth projection for 2025 is partly the result of a favorable which is based on comparison. It is among the top fastest growing economy in the world.
The economy of Libya depends primarily on revenues from the petroleum sector, which represents about 95% of export earnings and 60% of GDP. These oil revenues and a small population have given Libya one of the highest nominal per capita GDPs in Africa.
Libya’s GDP is still around a third smaller than before the civil war, providing ample scope for catch-up growth.
5. Palau
Palau is among the fastest growing economy in the world. Palau suffered a severe fall during the pandemic due to the collapse of the crucial tourism industry, which contributes about 40% of their GDP. However, Tourism is Palau’s main industry. After 4 consecutive years of economic contraction, Palau’s economy is expected to grow by 8.5% in 2025. And in 2024, Palau’s economy was about 6.5%.
6. Senegal
Senegal’s economy will be driven by the extractive sector in 2025, making it one of the fastest-growing economies in the world.
Senegal began producing oil in June 2023, with an initial production level expected to reach 100,000 barrels per day. Lowering inflation and public sector wages are what make Senegal a fast-growing economy in the world.
Senegal’s recent economic growth has been supported by a significant drop in inflation, which reached a 5-year low of 0.7% in July 2024. This decline was overly dependent on reduced food prices, which fell by 2%, and lowering housing-related costs, down 0.8%.
The government, however, has worked to diversify both cash crops and subsistence agriculture by expanding into commodities such as garden production, cotton, and sugarcane.
7. Ethiopia
Ethiopia’s GDP was spurred this year by structural reforms and billions of dollars in support from international partners such as the IMF and World Bank.
Ethiopia’s strong growth record has been reflected in average real growth of nearly 10% per year between 2004-2018, which is one of the highest rates in the world, led mainly by infrastructure investment that expanded access to infrastructure, services, and supported better living standards.
Also, having liberalized the exchange rate in mid-2024, the government’s policy focus is now on boosting domestic revenues, restructuring debt, and reforming state-owned enterprises.
8. Rwanda
Rwanda’s GDP has boomed in recent decades, with its GDP per capita increasing more rapidly than usual since the end of the genocide in the mid-1990s. The country’s lack of corruption, strong state control, development plan, and stable political systems have led to this rapid growth.
The economy of Rwanda has undergone rapid industrialization due to a successful governmental policy. It has a mixed economy system. The country’s panelists expected GDP this year to be broad-based, with a large expansion in private spending, exports, and fixed investment.
9. Cote D’lvoire
Côte d’Ivoire’s robust economic growth has been heavily commodity-driven. Besides cocoa, exports include rubber, oil, cotton, nuts, and gold, which introduces high volatility and cyclicality to the nation’s revenue.
The Cote D’Ivoire GDP growth will be underpinned in 2025 by multiple drivers, and it. It is among the fastest-growing economies in the world. The Baleine oil field should come fully loaded, boosting exports and fiscal revenues.
10. India
India is one of the fastest-growing economies in the world. The census is for the industry and services to be the key driver for India’s GDP growth this year, with agriculture to expand at a moderate rate.
Also, the new economy defined by the boom in services exports post-COVID experienced robust growth. India’s economy is still performing well, with foreign investment and looser regulations driving significant growth in the country.
India will benefit from its burgeoning manufacturing by international firms aiming to pivot away from China, its young population, interest rate cut by the central bank, and moderating inflation.
What Are The Dangers Of Investing In Emerging Markets?
While there are several benefits attached to investing in emerging markets. However, investing in emerging markets can be risky due to potential political instability, lower liquidity, investment volatility, currency fluctuations, and lack of dependable information.
What Country Has The Strongest Economy In Africa?
Some of the countries with the strongest economies include South Africa, Egypt, Algeria, Nigeria, Ivory Coast and others.
Conclusion
While most nations being listed are still poor in GDP per capita, they are, however, the top fastest growing economy in the world. This article has listed the top 10 fastest growing economy in the world, we hope it is helpful to your search.
Reference
- LinkedIn.com
- investopedia.com
- focused-economies.com
