20 Countries With Highest Rate of Economic Growth in 5 Years

Published on August 12, 2023 at 8:18 am by Ashar Jawad in Lists, News

In this article, we look at 20 countries with the highest rate of economic growth in 5 years. You can skip our detailed analysis on the global economic dynamics, and head over directly to the 5 Countries With Highest Rate of Economic Growth in 5 Years.

Gross Domestic Product (GDP) is the market value of all goods and services produced in a country within a given time period. It is a widely accepted metric to gauge the health and size of a nation’s economy. According to the OECD, the global GDP growth dropped from 3.3% in 2022 to 2.7% in 2023, but is expected to rebound and pick up to reach 2.9% in 2024. This is being driven by declining energy prices, improving consumer sentiment, and the reopening of China after Beijing eased Covid-19 restrictions.

One of our recent articles, the 20 Largest Economies in the World by 2050, covered the projected rise of several Asian, African, and Latin American economies, and talked about how the Emerging 7, or E7 markets, will surpass the advanced economies in the coming decades. The 21st century has been dubbed by economic experts to be Asia’s century with countries such as China, India, and Indonesia continuing to take big strides. However, we often overlook the silent economic rise of the African continent and some of the lesser known island nations in the Caribbean and Oceania.

Guyana has been the fastest growing economy in the world in terms of real GDP since 2018, recording an average economic growth of 27.14% in the last five years – including 62.3% in 2023 according to the IMF. Located on South America’s North Atlantic Coast, Guyana was one of the poorest countries in the region until 2015 when Exxon Mobil Corporation (NYSE:XOM) discovered major oil deposits some 100 miles off Guyana. The oil deposits are expected to generate $10 billion per annum for the country, with that figure expected to rise to $157 billion by 2040. Exxon Mobil Corporation (NYSE:XOM) and its partners earned $5.8 billion last year from oil production in Guyana. In April this year, Exxon Mobil Corporation (NYSE:XOM) announced plans to invest in a $12.7 billion oil project – their fifth in the country.

On the other hand, nine of the 20 countries with the highest rate of economic growth in the last five years are African economies. Africa is the second fastest growing region in the world after Asia. Despite facing challenges such as the pandemic, followed by disruption of global supply chains in the wake of Russia’s invasion of Ukraine, the African region remains resilient and had a real GDP growth of 3.8% in 2022, according to the African Development Bank. Economic growth is expected to rise to 4.1% in 2023-24.

The continent is known for having vast mineral resources, because of which is it is home to some of the largest mining companies in the world, including some that are even listed on stock exchanges of the United States, such as AngloGold Ashanti Limited (NYSE:AU), Gold Fields Limited (NYSE:GFI), and Sasol Limited (NYSE:SSL). You can read more on this in our article, the 30 Biggest Economies in Africa.

Asia continues to remain a powerhouse, due to its large population and subsequently a large market size. A number of western corporations have shifted part of their operations to Asian economies to take advantage of cheap skilled and unskilled labour. One such example is that of Apple Inc. (NASDAQ:AAPL). 95% of its iPhone, iPad, and Mac devices are made in China. The country was also the source of nearly one-fifth of Apple Inc. (NASDAQ:AAPL)’s revenue in 2022. The company is also making inroads in India, where earlier this year, Tim Cook inaugurated Apple Inc. (NASDAQ:AAPL)’s first retail store in India in Mumbai.

Microsoft Corporation (NASDAQ:MSFT) has also been increasing its footprint in Asia. The company announced in 2021 about its plan to set up a data center in Indonesia, which is likely to boost its annual revenue by $6 billion. In the United Arab Emirates, Microsoft Corporation (NASDAQ:MSFT) expects its cloud services portfolio to add $39 billion to the Emirati economy.

Homegrown Asian companies themselves contribute $19 trillion to the global economy. One among them is Alibaba Group Holding Limited (NYSE:BABA), an e-commerce giant that holds the dominant share in China’s wholesale and retail markets. Japanese car manufacturer Toyota Motor Corporation (NYSE:TM) holds an 11.5% share in the world’s automobile industry, while the Taiwan Semiconductor Manufacturing Company Limited accounts of 60% of the global output in the foundry industry. Moreover, the Reliance Industries Limited in India recently outranked companies like BMW, Nestle, Sony, and Alibaba Group Holding Limited (NYSE:BABA) in Forbes’ Global 2000 list of the world’s largest companies.

Methodology

We have ranked the 20 countries with the highest rate of economic growth in 5 years, using real GDP growth rates between 2018 and 2022. The data was sourced from the International Monetary Fund (IMF). Real GDP growth rates of countries over the last five years were averaged and then sorted in ascending order to rank the top 20 countries with the highest growth in the last half decade. In the case where growth rates were same for two or more countries, we outranked one over the other using their most recent (2022) real GDP growth rates as a tie-breaker.

20 Countries With Highest Rate of Economic Growth in 5 Years

Now let’s head over to the list of countries with the highest rate of economic growth in 5 years.

20. Georgia

Average Real GDP Growth (2018-2022): 4.72%

Located at the intersection of Asia and Europe, Georgia is a former Soviet republic where the economy has grown by over 10% over the last two years, and 4.72% on average each year since 2018.

19. Congo

Average Real GDP Growth (2018-2022): 4.76%

The Democratic Republic of the Congo is next on our list. The Central African nation has registered strong economic growth over the last few years, driven by exports and investment in the mining sector.

18. Armenia

Average Real GDP Growth (2018-2022): 4.78%

Despite the recent armed conflict with Azerbaijan, Armenia’s economy has grown at a steady rate of 4.78% over the last five years. In 2022, the real GDP growth was estimated to be 12.6% by the IMF.

17. Egypt

Average Real GDP Growth (2018-2022): 4.84%

Egypt is on track to overtake countries like Canada and Italy on a PPP basis by 2050. The country has enjoyed robust economic growth over the last five years. It ranks 17th among countries with highest rate of economic growth in 5 years.

16. Guinea

Average Real GDP Growth (2018-2022): 5.1%

Guinea’s economy is driven by agriculture, mining, fishing, energy, and communications. The West African nation has had an average economic growth of 5.1% since 2018.

15. Nauru

Average Real GDP Growth (2018-2022): 5.22%

Situated northeast of Australia is the tiny island nation in Micronesia called Nauru, where the economy has grown by 5.22% in the last five years, peaking at 9.1% in 2019 before slowing down to 3% last year.

14. China

Average Real GDP Growth (2018-2022): 5.28%

China is the largest economy in the world by PPP, and ranks second just behind the United States when measured in terms of nominal GDP.

13. Uzbekistan

Average Real GDP Growth (2018-2022): 5.4%

Uzbekistan is a country in Central Asia that has an abundance of natural gas and significant reserves of copper, zinc, lead, and uranium. Real GDP growth in the country between 2018 and 2022 was estimated to be 5.4% according to our analysis.

12. Côte d’Ivoire

Average Real GDP Growth (2018-2022): 5.5%

Côte d’Ivoire, also known as Ivory Coast, is a country in West Africa that is popular for producing some great football players over the years, such as Didier Drogba and Yaya Touré. The Ivorian economy is largely agriculture-based. Real GDP growth in 2022 was recorded at 6.7% by the IMF.

11. Tanzania

Average Real GDP Growth (2018-2022): 5.68%

According to the World Bank, the Tanzanian economy has grown at an average annual rate between 6-7% for more than a decade. However, it has slowed down since the pandemic struck in 2020 with the real GDP growth being under 5% in the last three years.

10. Vietnam

Average Real GDP Growth (2018-2022): 5.68%

According to the PwC, Vietnam is going to be among the three fastest growing economies between 2016 and 2050, and by 2050, the country will rank as the 20th largest economy in the world in terms of PPP. Last year, Vietnam’s real GDP growth was measured by 8% by the IMF.

9. Niger

Average Real GDP Growth (2018-2022): 5.82%

Niger is currently in the news for a political turmoil and geopolitical crisis following a military coup in the country. This could offset the economy which showed signs of recovery from the pandemic last year with a real GDP growth rate of over 11%.

8. Benin

Average Real GDP Growth (2018-2022): 6.12%

Benin is situated in West Africa, and is a French-speaking nation with a population in excess of 13 million. The country has averaged economic growth of over 6% in the last five years starting 2018.

7. Rwanda

Average Real GDP Growth (2018-2022): 6.48%

Rwanda is one of the poorest countries in the world, but its economy has shown signs of growth and potential in recent times. With the exception of 2020, when the GDP shrank by 3.8%, Rwanda’s economy has averaged a growth of 6.48% over the last five years. In 2021, the real GDP growth rate was estimated to be 10.9%, while in 2022 it dropped to 6.8%.

6. Bangladesh

Average Real GDP Growth (2018-2022): 6.52%

Bangladesh’s GDP is projected to grow by 5.3% in 2023. Over the last five years, the economy has grown by over 6.5%. It is considered among the fastest growing economies in South Asia, alongside Maldives and India. Bangladesh has surpassed both India and Pakistan in terms of GDP per capita.

Click to continue reading and see the 5 Countries With Highest Rate of Economic Growth in 5 Years.