Fastest Growing Economies 2021

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Economic growth can be defined as the increase in the capacity of an economy to produce goods and services. There is no agreed-upon ideal growth rate for a country or best way to achieve it.

Factors of Economic Growth

Different economists and sources have different ideas as to what drives economic growth. The following are a few explanations.

The following are several measured that the United States has employed to promote economic growth:

  • Consumer spending
  • Business investment
  • Tax cuts and tax rebates
  • Deregulation (to relax the rules imposed on an industry or business)
  • Increasing infrastructure spending (creates jobs for those who build the infrastructure and increases productivity by enabling businesses to operate efficiently)

Another way to look at how to achieve economic growth is by increasing the quality and quantity of the four factors of production. The factors of production are the resources used in creating goods and services in an economy. These factors are:

  • Land
  • Labor
  • Capital
  • Entrepreneurship

Additionally, the four following methods can lead to economic growth:

  • Increase the amount of physical capital
  • Make technological improvements
  • Grow the labor force
  • Increase human capital (increase the skillfulness of the labor force)

Measuring Economic Growth

Economic growth is most commonly measured by real gross domestic product (GDP). GDP is the total monetary value of all goods and services produced in a specific period within a country’s borders. GDP provides a snapshot of a country’s overall economic health. Real GDP means that GDP has been adjusted for inflation.

Growing an economy means manufacturing more goods and providing more services than during a previous period. To do so, it is important to consider not only the number of goods but their value as well. For example, a smartphone is worth more than a t-shirt. Additionally, not all individuals place the same value on certain goods as others do.

1. South Sudan

South Sudan’s real GDP growth rate is 11.3%. South Sudan’s economic growth is largely attributed to its oil sector. The country’s exports are projects to increase by 23% during fiscal year 2019/2020. Despite South Sudan’s economic achievements, it remains to be one of the poorest countries in the world. Additionally, South Sudan needs to address its underlying causes of conflict and focus on peace and stability to continue steady economic growth.

2. Rwanda

Rwanda’s real GDP growth rate is 10.1%. Rwanda’s economy was nearly destroyed by the genocide of 1994 but has since rehabilitated both its economy and its political stability. Rwanda’s economy has actually bounced back to a better standing than before 1994. Rwanda was in an economic boom before the COVID-19 pandemic, which has caused large disruptions in Rwanda's exports and tourism. The country is hoping to become a middle-income country by 2035 and a high-income country by 2050.

3. Libya

Libya’s real GDP growth rate is 9.9%, making it the third-fastest growing economy in the world. Libya’s economic growth was largely attributed to a substantial increase in crude oil production that averaged over one billion barrels per day over 2017-2019. Libya’s economic growth is expected to be delayed as political rivals have failed to maintain peace in the country. The conflict has taken a heavy toll on the economy, which has also taken a hit from the COVID-19 pandemic, as the production and exportation of oil have stopped since January 2020.

4. Dominica

Dominica’s real GDP is growing at a rate of 9.2%. Dominica’s economy is driven by agriculture and tourism, with its government promoting the nation as an “ecotourism” destination. In recent years, the government has focused on making Dominica a major offshore financial services center. It is also one of five East Caribbean nations that have a citizenship by investment program, which grants foreigners citizenship for a fee. Despite Dominica’s high real GDP growth rate, the country faces very high debt, which equated to about 77% of GDP in 2016.

5. Ethiopia

Ethiopia’s real GDP is currently growing at 9.0%. The country’s real GDP is $84.36 billion. From 2006/2007 to 2016/2017, Ethiopia experienced growth averaging 10.3%, which has since decreased. The country still struggles with low per capita income but is striving to become a lower-middle-income country by 2025.

Fastest Growing Economies 2021

Rank Country 2021 Population
China1,444,216,107
India1,393,409,038
United States332,915,073
Indonesia276,361,783
Pakistan225,199,937
Brazil213,993,437
Nigeria211,400,708
Bangladesh166,303,498
Russia145,912,025
Mexico130,262,216
Japan126,050,804
Ethiopia117,876,227
Philippines111,046,913
Egypt104,258,327
Vietnam98,168,833
Dr Congo92,377,993
Turkey85,042,738
Iran85,028,759
Germany83,900,473
Thailand69,950,850
United Kingdom68,207,116
France65,426,179
Tanzania61,498,437
Italy60,367,477
South Africa60,041,994
Kenya54,985,698
Myanmar54,806,012
South Korea51,305,186
Colombia51,265,844
Uganda47,123,531
Spain46,745,216
Argentina45,605,826
Sudan44,909,353
Algeria44,616,624
Ukraine43,466,819
Iraq41,179,350
Afghanistan39,835,428
Canada38,067,903
Poland37,797,005
Morocco37,344,795
Saudi Arabia35,340,683
Uzbekistan33,935,763
Angola33,933,610
Peru33,359,418
Malaysia32,776,194
Mozambique32,163,047
Ghana31,732,129
Yemen30,490,640
Nepal29,674,920
Venezuela28,704,954
Madagascar28,427,328
Cameroon27,224,265
Ivory Coast27,053,629
North Korea25,887,041
Australia25,788,215
Niger25,130,817
Taiwan23,855,010
Sri Lanka21,497,310
Burkina Faso21,497,096
Mali20,855,735
Malawi19,647,684
Chile19,212,361
Romania19,127,774
Kazakhstan18,994,962
Zambia18,920,651
Syria18,275,702
Guatemala18,249,860
Ecuador17,888,475
Senegal17,196,301
Netherlands17,173,099
Cambodia16,946,438
Chad16,914,985
Somalia16,359,504
Zimbabwe15,092,171
Guinea13,497,244
Rwanda13,276,513
Benin12,451,040
Burundi12,255,433
Tunisia11,935,766
Bolivia11,832,940
Belgium11,632,326
Haiti11,541,685
South Sudan11,381,378
Cuba11,317,505
Dominican Republic10,953,703
Czech Republic10,724,555
Greece10,370,744
Jordan10,269,021
Azerbaijan10,223,342
Portugal10,167,925
Sweden10,160,169
Honduras10,062,991
United Arab Emirates9,991,089
Tajikistan9,749,627
Hungary9,634,164
Belarus9,442,862
Papua New Guinea9,119,010
Austria9,043,070
Israel8,789,774
Switzerland8,715,494
Serbia8,697,550
Togo8,478,250
Sierra Leone8,141,343
Hong Kong7,552,810
Laos7,379,358
Paraguay7,219,638
Libya6,958,532
Bulgaria6,896,663
Lebanon6,769,146
Nicaragua6,702,385
Kyrgyzstan6,628,356
El Salvador6,518,499
Turkmenistan6,117,924
Singapore5,896,686
Denmark5,813,298
Republic Of The Congo5,657,013
Finland5,548,360
Norway5,465,630
Slovakia5,460,721
Oman5,223,375
Palestine5,222,748
Liberia5,180,203
Costa Rica5,139,052
Ireland4,982,907
Central African Republic4,919,981
New Zealand4,860,643
Mauritania4,775,119
Panama4,381,579
Kuwait4,328,550
Croatia4,081,651
Moldova4,024,019
Georgia3,979,765
Eritrea3,601,467
Uruguay3,485,151
Mongolia3,329,289
Bosnia And Herzegovina3,263,466
Jamaica2,973,463
Armenia2,968,127
Qatar2,930,528
Albania2,872,933
Puerto Rico2,828,255
Lithuania2,689,862
Namibia2,587,344
Gambia2,486,945
Botswana2,397,241
Gabon2,278,825
Lesotho2,159,079
North Macedonia2,082,658
Slovenia2,078,724
Guinea Bissau2,015,494
Latvia1,866,942
Bahrain1,748,296
Equatorial Guinea1,449,896
Trinidad And Tobago1,403,375
Timor Leste1,343,873
Estonia1,325,185
Mauritius1,273,433
Cyprus1,215,584
Eswatini1,172,362
Djibouti1,002,187
Fiji902,906
Reunion901,686
Comoros888,451
Guyana790,326
Bhutan779,898
Solomon Islands703,996
Macau658,394
Luxembourg634,814
Montenegro628,053
Western Sahara611,875
Suriname591,800
Cape Verde561,898
Maldives543,617
Malta442,784
Brunei441,532
Belize404,914
Guadeloupe400,020
Bahamas396,913
Martinique374,745
Iceland343,353
Vanuatu314,464
French Guiana306,448
New Caledonia288,218
Barbados287,711
French Polynesia282,530
Mayotte279,515
Sao Tome And Principe223,368
Samoa200,149
Saint Lucia184,400
Guam170,179
Curacao164,798
Kiribati121,392
Micronesia116,254
Grenada113,021
Saint Vincent And The Grenadines111,263
Aruba107,204
Tonga106,760
United States Virgin Islands104,226
Seychelles98,908
Antigua And Barbuda98,731
Isle Of Man85,410
Andorra77,355
Dominica72,167
Cayman Islands66,497
Bermuda62,090
Marshall Islands59,610
Northern Mariana Islands57,917
Greenland56,877
American Samoa55,100
Saint Kitts And Nevis53,544
Faroe Islands49,049
Sint Maarten43,412
Monaco39,511
Saint Martin39,234
Turks And Caicos Islands39,231
Liechtenstein38,250
San Marino34,017
Gibraltar33,698
British Virgin Islands30,421
Palau18,169
Cook Islands17,565
Anguilla15,117
Tuvalu11,931
Wallis And Futuna11,094
Nauru10,876
Saint Barthelemy9,907
Saint Pierre And Miquelon5,766
Montserrat4,977
Falkland Islands3,533
Niue1,619
Tokelau1,373
Vatican City800

Fastest Growing Economies 2021