25 Countries with Developing Economies but Slow Growth Rates

Published on February 28, 2024 at 4:46 pm by Zarah Hamid in Business, Economy, Lists, News

In this article, we will be navigating through the 25 countries with developing economies but slow growth rates. If you wish to skip our detailed analysis, you can move directly to the 5 Countries with Developing Economies but Slow Growth Rates.

Global Economic Outlook for 2024

The global economy has been predicted to remain resilient but slow in 2024. According to the latest world economic outlook reported by the IMF, global economic growth which was estimated at 3.1% in 2023 has been forecasted to remain at 3.1% in 2024 and to slightly rise to 3.2% in 2025. Although the forecast is higher than the one made by the IMF in October 2023, it still lags behind the pre-pandemic economic growth levels. On the bright side, the world’s economy has skipped a recession amidst high inflation, surging interest rates, and the sluggish after-effects of the global pandemic.

Global inflation is also subsiding rapidly in most regions which is expected to ease financial conditions. Region-wise, emerging markets and developing economies are to witness stable growth in 2024 and 2025 while a slight decline in growth for advanced economies in 2024 has been projected before it rises again in 2025.

Developing Economies at a Glance

As reported by the World Bank, the world’s economy is currently in the slowest half-decade of GDP growth in 30 years. In this context, developing economies which tend to be burdened by high external debts are the major victims of slow trends in global trade and tightened monetary policies. The borrowing costs have also been high, especially impacting those developing economies that have a bad credit rating. Due to the prevailing conditions, the access of developing economies to international capital markets is becoming increasingly hard.

The economic progression of developing economies relative to the pre-pandemic times is even worse. Food price inflation has exposed developing nations to poverty as well as food insecurity. It has been predicted that people in almost one out of every four developing economies and nearly 40% of low-income economies will be relatively poor by 2024’s end as compared to 2019 when the pandemic first struck. Commenting on the adversities that developing economies continue to face, the World Bank Group’s Chief Economist and Senior Vice President, Indermit Gill, said:

“Without a major course correction, the 2020s will go down as a decade of wasted opportunity. Near-term growth will remain weak, leaving many developing countries—especially the poorest—stuck in a trap: with paralyzing levels of debt and tenuous access to food for nearly one out of every three people. That would obstruct progress on many global priorities.”

Business in Developing Economies

Despite the challenges encountered by developing economies, businesses continue to thrive in many of these countries. Brazil is one of the major developing economies which hosts numerous globally renowned companies. Some of these include Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR), Nu Holdings Ltd. (NYSE:NU), and Centrais Eletricas Brasileiras SA (NYSE:EBR-B). Let’s take a look at what these firms have been up to.

Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a Brazilian state-owned company that serves as one of the largest oil and gas producers globally. On February 8, the company reported that it has been working on exploratory operations on the African continent. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) completed the acquisition of stakes in the 3 exploratory blocks 10, 11, and 13, in São Tomé and Príncipe. As a part of the consortia for these blocks, the company holds a 45% stake in blocks 10 and 13 and a 25% interest in block 11.

Nu Holdings Ltd. (NYSE:NU) is one of the largest digital financial services platforms in the world and caters to nearly 94 million customers across Brazil, Mexico, and Colombia. On February 22, the company reported its financial results for the fiscal fourth quarter of 2023. Nu Holdings Ltd. (NYSE:NU) reported earnings per share of $0.07. The company’s revenue for the quarter amounted to $2.40 billion, up 65.79% year-over-year and ahead of revenue consensus by $67.86 million.

Centrais Eletricas Brasileiras SA (NYSE:EBR-B) is a known Brazilian electric utilities company. It ranks as one of the largest energy companies in the world. On February 6, Centrais Eletricas Brasileiras SA (NYSE:EBR-B) reported that the company has secured a license to operate in test at the Coxilha Negra Wind Farm since The National Electric Energy Agency approved the test operation of seven generating units of the Coxilha Negra 2 Wind Power Plant. This is evidence of the company’s commitment to enhance generation from clean energy sources. The Coxilha Negra Wind Farm comprises three sets of plants.

Other valuable Brazilian companies heading into 2024 have been previously covered. Now that we have analyzed the global economy, let’s move to the 25 countries with developing economies but slow growth rates.

25 Countries with Developing Economies but Slow Growth Rates

Our Methodology:

In order to compile a list of the 25 countries with developing economies but slow growth rates, we referred to the IMF Data Mapper. We have defined ‘slow growth’ for the economies relative to the estimated growth of the larger segment of emerging and developing economies. The GDP growth estimated by the IMF for the emerging and developing economies in 2023 was 4%. Relative to this average growth rate of the segment, we screened all developing economies with GDP growth rates below 4%. This is because slow growth in this case is any positive value below 4%. Once we had acquired a list of all developing economies with small positive GDP growths in 2023, we ranked them in ascending order of their GDPs.

The GDP growth rates have also been mentioned as a subhead. All values have been cited from 2023.

25 Countries with Developing Economies but Slow Growth Rates

25. Azerbaijan

GDP (2023): $77.39 Billion

Real GDP Growth Rate (2023): 2.5%

In 2023, Azerbaijan’s real GDP grew by 2.5% while the country’s total GDP was recorded at $77.39 billion. Hence, Azerbaijan ranks among countries with developing economies but slow growth rates.

24. Turkmenistan

GDP (2023): $81.82 Billion

Real GDP Growth Rate (2023): 2.5%

Turkmenistan is one of the countries with developing economies but slow growth rates. In 2023, the country’s real GDP grew by 2.5%.

23. Angola

GDP (2023): $93.8 Billion

Real GDP Growth Rate (2023): 1.3%

The Southern Africa-based country of Angola is another country with a developing economy but a slow growth rate. In 2023, the country’s real GDP growth was recorded at 1.3%.

22. Guatemala

GDP (2023): $102.77 Billion

Real GDP Growth Rate (2023): 3.4%

Guatemala is based in Central America and ranks among countries with developing economies but slow growth rates. In 2023, the real GDP growth of the country was reported to be 3.4%.

21. Bulgaria

GDP (2023): $103.1 Billion

Real GDP Growth Rate (2023): 1.7%

Bulgaria is situated in Southeast Europe. The country’s real GDP witnessed a growth of 1.7% in 2023 which ranks it as one of the countries with developing economies but slow growth rates.

20. Oman

GDP (2023): $108.28 Billion

Real GDP Growth Rate (2023): 1.2%

Oman is a West Asian nation that ranks among countries with developing economies but slow growth rates in the world. The country’s real GDP grew by 1.2% in 2023.

19. Ecuador

GDP (2023): $118.69 Billion

Real GDP Growth Rate (2023): 1.4%

In 2023, the real GDP growth of Ecuador was recorded at 1.4% while the country’s overall GDP was reported to be $118.69 billion.

18. Dominican Republic

GDP (2023): $120.63 Billion

Real GDP Growth Rate (2023): 3%

Dominican Republic recorded total GDP of $120.63 billion in 2023 while the country’s real GDP grew by 3%. Therefore, the Dominican Republic is another country with a developing economy but a slow growth rate.

17. Morocco

GDP (2023): $147.34 Billion

Real GDP Growth Rate (2023): 2.4%

Morocco is based in North Africa. According to the IMF, the country’s real GDP growth was 2.4% in 2023 which ranks it as a country with a developing economy but a slow growth rate.

16. Ukraine

GDP (2023): $173.41 Billion

Real GDP Growth Rate (2023): 2%

Ukraine is situated in Eastern Europe and ranks among countries with developing economies but slow growth rates. In 2023, the country’s real GDP growth was recorded at 2%.

15. Algeria

GDP (2023): $224.11 Billion

Real GDP Growth Rate (2023): 3.8%

Algeria ranks as one of the countries with developing economies but slow growth rates. As reported by the IMF, the country’s real GDP grew by 3.8% in 2023.

14. Qatar

GDP (2023): $235.5 Billion

Real GDP Growth Rate (2023): 2.4%

According to the IMF, Qatar’s real GDP growth was 2.4% in 2023 while the overall GDP was recorded at $235.5 billion. Thus, Qatar is another country with a developing economy but a slow growth rate.

13. Peru

GDP (2023): $264.64 Billion

Real GDP Growth Rate (2023): 1.1%

While Peru’s GDP was recorded at $264.64 billion in 2023, its real GDP grew by 1.1%. Peru is one of the countries with developing economies but slow growth rates.

12. Romania

GDP (2023): $350.41 Billion

Real GDP Growth Rate (2023): 2.2%

Romania is a European country that had a GDP of $350.41 billion in 2023. The country’s real GDP growth was recorded at 2.2%.

11. Colombia

GDP (2023): $363.84 Billion

Real GDP Growth Rate (2023): 1.4%

The South American country of Colombia recorded a real GDP growth of 1.4% in 2023 while the total GDP of the country was recorded at $363.84 billion.

10. Iran

GDP (2023): $366.44 Billion

Real GDP Growth Rate (2023): 3%

Iran is a developing Asian nation that recorded a GDP of $366.44 billion in 2023. The real GDP growth for the country was recorded at 3%.

9. South Africa

GDP (2023): $380.91 Billion

Real GDP Growth Rate (2023): 0.9%

South Africa ranks among the countries with developing economies but slow growth rates. The country’s real GDP growth was reported to be 0.9% in 2023.

8. Nigeria

GDP (2023): $390 Billion

Real GDP Growth Rate (2023): 2.9%

Nigeria ranks as one of the 25 countries with developing economies but slow growth rates. In 2023, the country’s real GDP grew by 2.9%.

7. United Arab Emirates

GDP (2023): $509.18 Billion

Real GDP Growth Rate (2023): 3.4%

The total GDP of the United Arab Emirates was recorded at $509.18 billion in 2023 while the country’s real GDP growth was 3.4%. This ranks the country among countries with developing economies but slow growth rates.

6. Thailand

GDP (2023): $512.19 Billion

Real GDP Growth Rate (2023): 2.7%

Thailand is a Southeast Asian nation that recorded a total GDP of $512.19 billion in 2023. According to the IMF, the country’s real GDP growth was reported to be 2.7% in 2023.

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