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
1China1,444,216,107
2India1,393,409,038
3United States332,915,073
4Indonesia276,361,783
5Pakistan225,199,937
6Brazil213,993,437
7Nigeria211,400,708
8Bangladesh166,303,498
9Russia145,912,025
10Mexico130,262,216
11Japan126,050,804
12Ethiopia117,876,227
13Philippines111,046,913
14Egypt104,258,327
15Vietnam98,168,833
16Dr Congo92,377,993
17Turkey85,042,738
18Iran85,028,759
19Germany83,900,473
20Thailand69,950,850
21United Kingdom68,207,116
22France65,426,179
23Tanzania61,498,437
24Italy60,367,477
25South Africa60,041,994
26Kenya54,985,698
27Myanmar54,806,012
28South Korea51,305,186
29Colombia51,265,844
30Uganda47,123,531
31Spain46,745,216
32Argentina45,605,826
33Sudan44,909,353
34Algeria44,616,624
35Ukraine43,466,819
36Iraq41,179,350
37Afghanistan39,835,428
38Canada38,067,903
39Poland37,797,005
40Morocco37,344,795
41Saudi Arabia35,340,683
42Uzbekistan33,935,763
43Angola33,933,610
44Peru33,359,418
45Malaysia32,776,194
46Mozambique32,163,047
47Ghana31,732,129
48Yemen30,490,640
49Nepal29,674,920
50Venezuela28,704,954
51Madagascar28,427,328
52Cameroon27,224,265
53Ivory Coast27,053,629
54North Korea25,887,041
55Australia25,788,215
56Niger25,130,817
57Taiwan23,855,010
58Sri Lanka21,497,310
59Burkina Faso21,497,096
60Mali20,855,735
61Malawi19,647,684
62Chile19,212,361
63Romania19,127,774
64Kazakhstan18,994,962
65Zambia18,920,651
66Syria18,275,702
67Guatemala18,249,860
68Ecuador17,888,475
69Senegal17,196,301
70Netherlands17,173,099
71Cambodia16,946,438
72Chad16,914,985
73Somalia16,359,504
74Zimbabwe15,092,171
75Guinea13,497,244
76Rwanda13,276,513
77Benin12,451,040
78Burundi12,255,433
79Tunisia11,935,766
80Bolivia11,832,940
81Belgium11,632,326
82Haiti11,541,685
83South Sudan11,381,378
84Cuba11,317,505
85Dominican Republic10,953,703
86Czech Republic10,724,555
87Greece10,370,744
88Jordan10,269,021
89Azerbaijan10,223,342
90Portugal10,167,925
91Sweden10,160,169
92Honduras10,062,991
93United Arab Emirates9,991,089
94Tajikistan9,749,627
95Hungary9,634,164
96Belarus9,442,862
97Papua New Guinea9,119,010
98Austria9,043,070
99Israel8,789,774
100Switzerland8,715,494
101Serbia8,697,550
102Togo8,478,250
103Sierra Leone8,141,343
104Hong Kong7,552,810
105Laos7,379,358
106Paraguay7,219,638
107Libya6,958,532
108Bulgaria6,896,663
109Lebanon6,769,146
110Nicaragua6,702,385
111Kyrgyzstan6,628,356
112El Salvador6,518,499
113Turkmenistan6,117,924
114Singapore5,896,686
115Denmark5,813,298
116Republic Of The Congo5,657,013
117Finland5,548,360
118Norway5,465,630
119Slovakia5,460,721
120Oman5,223,375
121Palestine5,222,748
122Liberia5,180,203
123Costa Rica5,139,052
124Ireland4,982,907
125Central African Republic4,919,981
126New Zealand4,860,643
127Mauritania4,775,119
128Panama4,381,579
129Kuwait4,328,550
130Croatia4,081,651
131Moldova4,024,019
132Georgia3,979,765
133Eritrea3,601,467
134Uruguay3,485,151
135Mongolia3,329,289
136Bosnia And Herzegovina3,263,466
137Jamaica2,973,463
138Armenia2,968,127
139Qatar2,930,528
140Albania2,872,933
141Puerto Rico2,828,255
142Lithuania2,689,862
143Namibia2,587,344
144Gambia2,486,945
145Botswana2,397,241
146Gabon2,278,825
147Lesotho2,159,079
148North Macedonia2,082,658
149Slovenia2,078,724
150Guinea Bissau2,015,494
151Latvia1,866,942
152Bahrain1,748,296
153Equatorial Guinea1,449,896
154Trinidad And Tobago1,403,375
155Timor Leste1,343,873
156Estonia1,325,185
157Mauritius1,273,433
158Cyprus1,215,584
159Eswatini1,172,362
160Djibouti1,002,187
161Fiji902,906
162Reunion901,686
163Comoros888,451
164Guyana790,326
165Bhutan779,898
166Solomon Islands703,996
167Macau658,394
168Luxembourg634,814
169Montenegro628,053
170Western Sahara611,875
171Suriname591,800
172Cape Verde561,898
173Maldives543,617
174Malta442,784
175Brunei441,532
176Belize404,914
177Guadeloupe400,020
178Bahamas396,913
179Martinique374,745
180Iceland343,353
181Vanuatu314,464
182French Guiana306,448
183New Caledonia288,218
184Barbados287,711
185French Polynesia282,530
186Mayotte279,515
187Sao Tome And Principe223,368
188Samoa200,149
189Saint Lucia184,400
190Guam170,179
191Curacao164,798
192Kiribati121,392
193Micronesia116,254
194Grenada113,021
195Saint Vincent And The Grenadines111,263
196Aruba107,204
197Tonga106,760
198United States Virgin Islands104,226
199Seychelles98,908
200Antigua And Barbuda98,731
201Isle Of Man85,410
202Andorra77,355
203Dominica72,167
204Cayman Islands66,497
205Bermuda62,090
206Marshall Islands59,610
207Northern Mariana Islands57,917
208Greenland56,877
209American Samoa55,100
210Saint Kitts And Nevis53,544
211Faroe Islands49,049
212Sint Maarten43,412
213Monaco39,511
214Saint Martin39,234
215Turks And Caicos Islands39,231
216Liechtenstein38,250
217San Marino34,017
218Gibraltar33,698
219British Virgin Islands30,421
220Palau18,169
221Cook Islands17,565
222Anguilla15,117
223Tuvalu11,931
224Wallis And Futuna11,094
225Nauru10,876
226Saint Barthelemy9,907
227Saint Pierre And Miquelon5,766
228Montserrat4,977
229Falkland Islands3,533
230Niue1,619
231Tokelau1,373
232Vatican City800

Fastest Growing Economies 2021