In this article, we will look at 20 countries with the highest annual GDP growth in the world. If you wish to skip our detailed analysis, you can go directly to 5 Countries with the Highest Annual GDP Growth in the World.
The Global Economy: An Overview
The global economy is experiencing a recovery after the unprecedented falls incurred because of the COVID-19 pandemic. According to a report by the International Monetary Fund, the global economy is expected to grow at 3.1% in 2024 and at 3.5% in 2025. Moreover, global headline inflation is projected to reduce to 5.8% in 2024, and further to 4.4% in 2025.
However, recovery from the effects of the COVID-19 pandemic is hindered by geopolitical tensions, supply chain disruptions, high inflation, and tightened monetary conditions. The middle of 2022 saw an all-time high in the price of natural gas, which rose to 10 times its original cost, as reported by the Center for Economic and Policy Research. This cost hike had a direct effect on the price of electricity. The unprecedented increases in electricity prices affected the economy of the European Union as well. Electricity prices in the Netherlands alone increased by 86% between 2022 and 2023, according to data from Eurostat.
China, one of the key drivers of economic growth in the Asia-Pacific region, is also experiencing turbulence because of the property market crisis. According to a report by Bloomberg, this crisis is highly likely to have repercussions across the globe, and has wiped off more than $1 trillion from office property value alone.
Regional Economic Outlook
According to another report by the International Monetary Fund, the Asia-Pacific region took the lead in driving global growth in 2023. Despite strict monetary policies and the shift in global demands from goods to services, the region’s growth reached 5.0% in late 2023. However, growth in the region is expected to slow down in 2024, reducing to a range between 3.9%-4.2%. Inflation in the region is also projected to reduce in 2024, remaining within the thresholds of central banks’ target ranges. Some areas in the Asia-Pacific region are highly likely to undergo a faster rate of disinflation as compared to others.
The Latin America and Caribbean region has experienced a fast rate of recovery after the pandemic. However, the economic growth rates are expected to soften as high inflation causes tighter combative policies to come into action. Although the region made a 6.9% rebound in 2021, the Russia-Ukraine conflict caused a reduction of 0.4% in its regional growth projections, according to the World Bank. On the other hand, Europe is standing at the crossroads of the effects of energy price fluctuations of the past year and a dire need for price control and financial stability. Reducing energy prices and falling inflation are exerting a positive economic effect in the region. However, hindrances such as sustained wage growth are likely to slow down the region’s price control endeavors. Data by the European Parliament shows that the rate of inflation tripled in the European Union between 2021 and 2022, reaching its highest-ever level of 9.2%. Although it dropped to 7.1% in May 2023, Europe is likely to face further growth damage if it fails to combat inflation and bring price stability to the region. That is because potential shocks from climate change and unstable geopolitical conditions might further financially destabilize the region. According to data by the International Monetary Fund, Europe underwent a 1.4% year-over-year real GDP growth in 2023, which is expected to increase to 1.6% in 2024. You can also look at 30 Countries with the Highest GDP in 2023.
Key Players in the Asian Economy
Some of the prominent Asian companies that have been driving growth in the region include Reliance Industries Limited (NSE:RELIANCE), Alibaba Group Holding Limited (NYSE:BABA), and Samsung Electronics Co., Ltd. (OTC:SSNLF). Let’s discuss some recent updates from these companies.
India-based Reliance Industries Limited (NSE:RELIANCE) is a prominent name in the list of world-class multinational companies. The company made headlines by announcing its agreement with The Walt Disney Company (NYSE:DIS) to form a joint venture. This agreement would join Disney’s Star India service and Viacom18 Media Private Limited, the media subsidiary of Reliance Industries Limited (NSE:RELIANCE). On February 29, Reuters reported that the merger would form an Indian streaming service worth $8.5 billion. The merger is also likely to compete with Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc.’s (NASDAQ:AMZN) Prime Video, and Sony Group Corporation (NYSE:SONY).
Alibaba Group Holding Limited (NYSE:BABA) is another prominent player in the region. On May 1, the company announced plans to build a data center in Vietnam for its data storage needs. With Vietnam being one of the fastest growing economies in Asia, the decision came after Nvidia Corporation (NASDAQ:NVDA) and Apple Inc. (NASDAQ:AAPL) made similar decisions to expand their supply chain base in the region.
South Korea’s Samsung Electronics Co., Ltd. (OTC:SSNLF) is one of the top smartphone companies in the world. On April 30, Al Jazeera reported that the company announced a ten-fold increase in its operating profit in the first quarter of 2024. The company reported an operating profit of $4.85 billion, which was backed by high sales of its flagship Galaxy S24 smartphone. Additionally, the company benefitted from increased prices for memory semiconductors. Samsung Electronics Co., Ltd. (OTC:SSNLF) also saw a 13% increase in its overall revenue, which reached $52 billion, or 71.9 trillion won.
With this context, let’s take a look at the 20 countries with the highest annual GDP growth in the world. You can also look at 25 Countries with Highest Tax to GDP Ratio in the World and 30 Countries with Highest Standard of Living Ranked by GDP (PPP) Per Capita.
An expansive view of the cityscape, showing the impact of the company’s activities in China.
Our Methodology
In order to compile a list of the 20 countries with the highest annual GDP growth in the world, we have used the percentage of annual GDP growth as the primary metric. The data has been taken from the International Monetary Fund, for the year 2023. We have also included the GDP, at current prices, of each country as of 2023. The GDP growth rate is our primary metric while the GDP served as our secondary metric for breaking ties. The 20 countries with the highest annual GDP growth in the world are ranked in ascending order of the percentage of their annual GDP growth and their GDP, as of 2023.
20 Countries with the Highest Annual GDP Growth in the World
20. Montenegro
Annual Real GDP Growth as of 2023: 6%
Current GDP as of 2023: $7.41 billion
Montenegro is a Balkan country that ranks 20th on our list of the 20 countries with the highest annual GDP growth in the world. The country had an annual GDP growth of 6% in 2023, and a current GDP value of $7.41 billion in the same year.
19. Bangladesh
Annual Real GDP Growth as of 2023: 6%
Current GDP as of 2023: $446.35 billion
Bangladesh is a South Asian country with a population of 171.2 million people as of 2022, according to World Bank estimates. It ranks 19th on our list with a current GDP of $446.35 billion as of 2023.
18. The Democratic Republic of Congo
Annual Real GDP Growth as of 2023: 6.1%
Current GDP as of 2023: $67.27 billion
The Democratic Republic of Congo had an annual GDP growth of 8.9% in 2022, up from 6.2% in 2021. However, the country’s annual GDP growth dropped to 6.1% in 2023. With a population of around 99.01 million as of 2022, according to the World Bank, the country has had a turbulent economic history due to its colonial past.
17. Saint Vincent and the Grenadines
Annual Real GDP Growth as of 2023: 6.2%
Current GDP as of 2023: $1.04 billion
Saint Vincent and the Grenadines is a Caribbean nation comprising a major and several minor islands. The country experienced a 6.2% growth in its GDP in 2023, ranking it 17th on our list.
16. Côte d’Ivoire
Annual Real GDP Growth as of 2023: 6.2%
Current GDP as of 2023: $79.98 billion
With an annual GDP growth of 6.2%, Côte d’Ivoire ties with Saint Vincent and the Grenadines in terms of annual increase in GDP. Côte d’Ivoire ranks 16th on our list with a current GDP of $79.98 billion as of 2023.
15. Rwanda
Annual Real GDP Growth as of 2023: 6.9%
Current GDP as of 2023: $14.02 billion
Rwanda’s annual GDP grew by 6.9% in 2023, ranking it 15th on our list. The country has a current GDP of $14.02 billion as of the same year.
14. Mauritius
Annual Real GDP Growth as of 2023: 6.9%
Current GDP as of 2023: $14.37 billion
Mauritius is an East African island country surrounded by the Indian Ocean. The country has a population of 1.263 million people as of 2022, according to estimates by the World Bank. It ranks 14th on our list.
13. Djibouti
Annual Real GDP Growth as of 2023: 7%
Current GDP as of 2023: $4.02 billion
With an annual GDP growth of 7%, Djibouti ranks 13th on our list of 20 countries with the highest annual GDP growth in the world. The country’s current GDP as of 2023 is $4.02 billion.
12. Mongolia
Annual Real GDP Growth as of 2023: 7%
Current GDP as of 2023: $19.86 billion
Mongolia is a landlocked East Asian country known for its rugged landscape and nomadic traditions. The country ranks 12th on our list with a current GDP of $19.86 billion as of 2023, and an annual GDP growth of 7% in the same year.
11. Ethiopia
Annual Real GDP Growth as of 2023: 7.2%
Current GDP as of 2023: $159.75 billion
Ethiopia ranks 11th on our list with an annual GDP growth of 7.2% as of 2023. The country’s current GDP value in the same year was $159.75 billion.
10. Panama
Annual Real GDP Growth as of 2023: 7.3%
Current GDP as of 2023: $83.38 billion
Panama is a Central American country connecting South and Central America. It had an annual GDP growth of 10.8% in 2022 and 7.3% in 2023, ranking it tenth on our list.
9. Georgia
Annual Real GDP Growth as of 2023: 7.5%
Current GDP as of 2023: $30.57 billion
Georgia’s annual GDP growth declined steadily between 1988 and 1992, reaching its lowest percentage of -44.9% in 1992. The country’s GDP has been recovering since then, occasionally experiencing slight dips. Its annual GDP growth as of 2022 was 10.4%, dropping to 7.5% in 2023.
8. India
Annual Real GDP Growth as of 2023: 7.8%
Current GDP as of 2023: $3.57 trillion
India ranks eighth on our list of the 20 countries with the highest annual GDP growth in the world. The country experienced a 7.8% growth in its annual GDP in 2023.
7. Samoa
Annual Real GDP Growth as of 2023: 8%
Current GDP as of 2023: $0.93 billion
The Independent State of Samoa is a Polynesian country located in Oceania and has a population of 222,382 people as of 2022, according to estimates by the World Bank. The country ranks seventh on our list with an annual GDP growth of 8% in 2023.
6. Fiji
Annual Real GDP Growth as of 2023: 8%
Current GDP as of 2023: $5.5 billion
Fiji is an archipelagic country in Melanesia, located in Oceania. The country comprises more than 300 islands surrounded by the South Pacific Ocean. It ranks sixth on our list, with an annual GDP growth of 8%. Its GDP growth fell to -17% in 2020, but has since then been on the path to recovery.
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Disclosure: none. 20 Countries with the Highest Annual GDP Growth in the World is originally published on Insider Monkey.