As the global economy continues to evolve, some countries are emerging as significant growth engines, setting the pace for economic development worldwide, including India, aiming to reach the coveted $5 trillion economy in the imminent future. The country’s growing economy provides a look into the future and how those nations will fare in the long run. Here’s a look at the world’s ten fastest-growing economies in 2024 and the factors driving their remarkable expansion.
Growth Indicators of an Economy
Economic growth is assessed through various indicators, with Gross Domestic Product (GDP) being the most widely used. GDP measures the total value of goods and services produced within a country, providing a snapshot of economic performance. Here’s a list of major growth indicators of an economy:
- Gross National Income (GNI): It extends beyond GDP by including income earned by residents from foreign sources. It gives a broader view of economic activity, especially for countries with significant remittances or foreign investments, but like GDP, it doesn’t fully capture income inequality.
- Gender Equality Index (GII): It measures gender disparities in a country, focusing on empowerment, reproductive health, and labor market participation. It underscores the role of gender equality in economic development, as greater gender equality often correlates with stronger economic growth.
- Human Development Index (HDI): It combines life expectancy, education, and income to measure human progress. It provides a more holistic view of development, highlighting the importance of health and education alongside economic growth, though it may oversimplify complex interactions.
- Environmental Performance Index (EPI): It assesses a country’s ecological health and sustainability. It emphasizes the importance of balancing economic growth with environmental stewardship, highlighting the risks of unsustainable development practices.
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Top 10 Fastest Growing Economies of the World 2024 by GDP
Here are the top ten fastest growing economies of the world in 2024 based on GDP growth, economic stance, and various reform programs aimed at growing their economy.
1. Rwanda
Rwanda, a landlocked country in East Africa, is one of the world’s fastest-growing economies with a remarkable 7.0% GDP growth rate. Once stricken by civil war, this country has managed to stabilize its political stance and cultivated rapid industrialization and focus on entrepreneurship, and economy with a push for technological advancement. Rwanda’s progress in the last decade has been a great story for Africa’s growth and has seen it being named the “Singapore of Africa”. It has a mixed economy and is seen as an example of cultivating a war-stricken country into a growing economy of the world.
Key Indicators:
- GDP Growth Rate: 7.0%
- GNI per Capita: $830
- GII: High focus on gender equality, with women holding significant political power.
- HDI: 0.543
- EPI: 48.00
2. India
India continues to be a global growth powerhouse with a GDP growth rate of 6.5%. The country currently ranked as the fifth largest economy is aiming for a $5 Tn economy by 2027 and to reach the coveted third rank. The country’s booming digital economy, infrastructure development, and expanding middle class are key drivers of its growth. India is also seen as the most emerging market for investments as per Morgan Stanley while the Indian equities market crossed $4 Tn mark surpassing Hong Kong Market.
Key Indicators:
- GDP Growth Rate: 6.5%
- GNI per Capita: $2,170
- GII: Moderate gender equality, with ongoing reforms to improve
- HDI: 0.645
- EPI: 27.60
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3. Bangladesh
Bangladesh has maintained its impressive growth trajectory with a GDP growth rate of 6.2%. The country’s textile industry and manufacturing sector are significant contributors to its economic success while the growing services and remittance sector has helped it attain an average of 6% GDP growth for the last decade showing steady growth. The country is also looking to diversify its economy by investing in industries like IT, pharmaceuticals, and leather goods. It’s growth has helped Bangladesh become one of the fastest-growing economies in the South Asia region.
Key Indicators:
- GDP Growth Rate: 6.2%
- GNI per Capita: $2,230
- GII: Improving gender equality, particularly in labor participation.
- HDI: 0.661
- EPI: 29.67
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4. Vietnam
Vietnam’s economic growth continues at a robust 6.0% for 2024, fueled by its strong manufacturing sector and increasing digitalization. Vietnam’s economy has experienced rapid growth in recent years, becoming one of the fastest-growing economies in the Asia-Pacific region. The country’s GDP growth is driven by a combination of factors such as a young and educated workforce, a favorable business environment, and a strategic location. The country is also home to a number of key industries, including manufacturing, textiles, and electronics, and has become an attractive destination for foreign investors. The country’s economy is expected to continue growing steadily in the coming years, driven by its strategic location and favorable business environment.
Key Indicators:
- GDP Growth Rate: 6.0%
- GNI per Capita: $4,190
- GII: High gender equality with significant female labor participation.
- HDI: 0.704
- EPI: 37.77
5. Ethiopia
Ethiopia, another nation from Africa to witness a growing economy and become a known name across the globe saw a GDP growth rate of 5.8% in 2024. Its economy is mixed and transitional with large public sector undertaking and substantial infrastructure investments and industrialization. The country has made substantial progress in poverty reduction, with the proportion of the population living below the poverty line decreasing from 35.9% in 2004 to 23.5% in 2015. The agriculture sector is a major contributor to the economy, while the industrial sector, including manufacturing and construction, has also shown strong growth. Ethiopia is also rich in natural resources, including gold, copper, and natural gas. The country is seeking to diversify its economy through investment in sectors such as tourism and manufacturing.
Key Indicators:
- GDP Growth Rate: 5.8%
- GNI per Capita: $960
- GII: Moderate gender equality, with improving access to education and healthcare.
- HDI: 0.485
- EPI: 28.70
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6. Philippines
The Philippines is experiencing strong economic expansion with a 5.7% GDP growth rate. It is one of the most dynamic economies in the East Asia and Pacific region. The economy is driven by sectors such as business process outsourcing, tourism, and remittances from overseas Filipinos. The country is also actively pursuing infrastructure development, with large-scale projects in transportation, energy, and telecommunications. Additionally, the government is implementing policies to promote entrepreneurship, innovation, and economic diversification. These efforts have contributed to the Philippines’ ability to withstand global economic shocks and achieve steady growth.
Key Indicators:
- GDP Growth Rate: 5.7%
- GNI per Capita: $3,850
- GII: Improved gender equality, particularly in education and employment.
- HDI: 0.718
- EPI: 31.60
7. Egypt
Egypt’s economy is the second largest economy in Africa by nominal GDP and has seen its transition from a centralized economy to a market-oriented economy. The nation saw a GDP growth of 5.4% in 2024. With a vision for Egypt 2030, the government has implemented various economic reforms aimed at attracting foreign investment and promoting economic growth. It also has strong tourism and manufacturing sectors, driving its GDP.
Key Indicators:
- GDP Growth Rate: 5.4%
- GNI per Capita: $3,020
- GII: Gender equality remains a challenge, with ongoing efforts to improve.
- HDI: 0.707
- EPI: 26.90
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8. Kenya
Kenya’s economy is growing steadily at 5.3%, fueled by its robust agricultural sector and rapid technological advancements. As a major hub in East Africa and an emerging economy, Kenya has a large and diverse economy, with major sectors including agriculture, manufacturing, and services. The country has a young and rapidly growing population, with a high proportion of entrepreneurs and small-scale businesses. The government has implemented various initiatives to promote economic growth, including the development of infrastructure, trade agreements, and reforms to improve the business environment. Kenya is also a major hub for fintech innovation and entrepreneurship.
Key Indicators:
- GDP Growth Rate: 5.3%
- GNI per Capita: $1,840
- GII: Gender equality is advancing, with notable improvements in education.
- HDI: 0.601
- EPI: 43.40
9. Uzbekistan
Uzbekistan is achieving strong growth with a 5.5% GDP increase, thanks to significant economic reforms that have opened up the economy and attracted foreign investments, particularly in the energy and infrastructure sectors. Key sectors of the country’s economic upbringing include textiles, food processing, and mineral extraction. Uzbekistan is also rich in natural resources, including cotton, gold, and oil. Efforts are being made to diversify the economy and reduce its dependence on cotton exports. The government has also implemented policies to promote entrepreneurship and small and medium-sized enterprises.
Key Indicators:
- GDP Growth Rate: 5.5%
- GNI per Capita: $1,850
- GII: Moderate gender equality, with ongoing reforms to improve women’s empowerment.
- HDI: 0.720
- EPI: 40.50
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10. Saudi Arabia
Saudi Arabia rounds out the list with a 4.8% GDP growth rate, driven by its Vision 2030 initiative to diversify the economy away from oil. The Saudi economy is a significant player in the Middle East, driven by the country’s vast oil reserves and strategic location. The kingdom is the world’s largest oil exporter, with oil accounting for approximately 90% of its exports. Despite its oil-based economy, Saudi Arabia has been diversifying its economy, investing in sectors such as manufacturing, tourism, and renewable energy to reduce its dependence on oil.
Key Indicators:
- GDP Growth Rate: 4.8%
- GNI per Capita: $23,140
- GII: Gender equality is improving, with significant reforms under Vision 2030.
- HDI: 0.854 (High human development).
- EPI: 29.60 (Low environmental performance).
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Wrapping Up
These aforementioned fastest-growing economies of 2024 showcase it’s clear that a variety of factors contribute to the economic success of these nations. From technological advancements and strategic economic reforms to increased gender equality and environmental sustainability, each of these countries is forging a unique path to prosperity. Rwanda, India, and Bangladesh lead the pack, proving an example of how diverse strategies and reforms can propel nations into the global economic spotlight. As these countries continue to grow, they offer valuable insights into the future of global economic development, demonstrating the importance of balancing economic growth with social and environmental progress.
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FAQs
What are the fastest-growing economies in 2024?
The fastest-growing economies in 2024 include Rwanda, India, Bangladesh, Vietnam, and Ethiopia. These countries are experiencing significant GDP growth due to factors like technological advancements, infrastructure development, and economic reforms.
Why is Rwanda the fastest-growing economy in 2024?
Rwanda’s impressive 7.0% GDP growth rate in 2024 is attributed to its strong focus on technological innovation, gender equality, and environmental sustainability. The country’s progressive policies and stable political environment have also played a key role in its rapid growth.
How is India performing in terms of economic growth in 2024?
India is one of the world’s fastest-growing economies in 2024, with a GDP growth rate of 6.5%. The country’s growth is driven by its expanding digital economy, infrastructure projects, and a rapidly growing middle class. India is also on track to achieve its goal of becoming a $5 trillion economy.
What is the rank of India’s economy in 2024?
India ranks at fifthth in the global economies based on GDP. It is also on track to reach a $5 Tn economy by 2027. India’s GDP growth for 2024 is 6.5% and is the second fastest growing economy in the world and fastest developing economies around.
What is India’s rank in GDP?
India ranks at fifthth in the global economies based on GDP. It is also on track to reach a $5 Tn economy by 2027. India’s GDP growth for 2024 is 6.5% and is the second fastest growing economy in the world and fastest developing economies around.
What are the top 5 largest economies in the world 2025?
US, China, Germany, Japan and India are ranked respectively as the five largest economies in the world at present. India is also set to become the third largest by 2027 based on IMF projections.
What factors contribute to Bangladesh’s economic growth?
Bangladesh’s GDP growth rate of 6.2% in 2024 is supported by its thriving textile industry, robust manufacturing sector, and increasing contributions from the services and remittance sectors. The country is also diversifying its economy by investing in IT, pharmaceuticals, and other industries.
Why is Vietnam considered a rapidly growing economy in 2024?
Vietnam’s 6.0% GDP growth in 2024 is driven by its strong manufacturing sector, strategic location, and increasing digitalization. The country has become a key player in global supply chains, attracting significant foreign investment and establishing itself as a leading economy in the Asia-Pacific region.
How has Ethiopia achieved strong economic growth?
Ethiopia’s 5.8% GDP growth in 2024 is largely due to substantial infrastructure investments, industrialization, and progress in poverty reduction. The country’s mixed and transitional economy, combined with a focus on diversifying its sectors, has led to consistent economic expansion.
What is driving economic growth in the Philippines in 2024?
The Philippines is experiencing a 5.7% GDP growth rate in 2024, driven by its business process outsourcing industry, tourism, remittances from overseas workers, and large-scale infrastructure development projects. The country is also implementing policies to promote innovation and economic diversification.
What are the key factors behind Egypt’s economic growth in 2024?
Egypt’s 5.4% GDP growth rate in 2024 is supported by its tourism and manufacturing sectors, as well as ongoing economic reforms aimed at attracting foreign investment. The country’s strategic vision for 2030 is also driving economic expansion and diversification.
Why is Kenya one of the fastest-growing economies in 2024?
Kenya’s steady GDP growth rate of 5.3% in 2024 is fueled by its agricultural sector, technological advancements, and government initiatives to improve infrastructure and the business environment. Kenya is also a major hub for fintech innovation in East Africa.
How is Saudi Arabia diversifying its economy in 2024?
Saudi Arabia’s 4.8% GDP growth in 2024 is part of its Vision 2030 initiative, which aims to diversify the economy away from oil dependence. The country is investing in sectors like manufacturing, tourism, and renewable energy to ensure long-term economic sustainability and growth.
