It is no secret that developed countries experience a markedly lower incidence of poverty than their developing counterparts. Furthermore, the poverty that these developed countries experience is often not the extreme variety that is endemic to developing regions of the world. If a country’s level of development can serve as a rough gauge of the magnitude of poverty experienced in the country, then it is worth exploring which economies are growing the fastest and developing at the most rapid pace. Below is the list of the five fastest-growing economies right now using the most recent data with the annual GDP growth rates from The World Bank.
Annual GDP growth rate of 26.7 percent (2017)
Situated on the Mediterranean Coast of Africa, the large country of Libya recorded a monumental economic GDP growth rate in 2017. The country’s economy is almost entirely driven by oil and natural gas exports, which have pushed the Libyan growth rate to this level. In 2017, oil production reached its peak for the last five years and, in combination with the rise in oil prices, spurred growth.
Since ousting of dictator Muammar Gaddafi in 2011, the country has seen severe political instability with different military groups claiming different regions of the country. However, in the summer of 2018, at meetings led by French President Emmanuel Macron, the main two opposing factions in Libya agreed to hold elections in December. If successful, the elections could lead to stability in this volatile region and give the Libyan more financial and political security.
Annual GDP growth rate of 5.8 percent (2017)
Located on Western Africa coast, Guinea’s economy is driven largely by exports of bauxite, high-grade iron ore, gold and diamonds. Furthermore, The CIA World Factbook states that Guinea has the potential to be a major exporter of hydroelectric power due to its river potential. Additionally, the untapped mineral deposits of the country are poised to attract international investment. Guinea has seen a recovery from the severe Ebola crisis, but it is still under the threat of political instability. However, the pieces for a more prosperous Guinea are beginning to fall into place.
Annual GDP growth rate: 10.2 percent (2017)
Ethiopia, Africa’s 10th largest country, lies on the eastern side of the continent within the horn of Africa. Ethiopia also holds Africa’s second largest population and one of the most dynamic economies in the region. Ethiopia’s GDP consists mostly of the service sector, agriculture and industry, respectively. According to recent estimates, Ethiopia is poised to be the fastest growing economy in sub-Saharan Africa by the end of 2018.
Furthermore, the sustained decade-long growth that country has experienced contributed to a reduction of poverty in the country, with the extreme poverty rate declining from 55.5 percent in 2000 to 33.5 percent in 2011. The government of Ethiopia has recently implemented the 2nd phase of its growth and transformation plan that aims to increase GDP growth and create jobs by a 20 percent expansion of the industrial sector of the economy.
Macau SAR, China
Annual GDP growth rate of 9.1 percent (2017)
Macau, a Special Administrative Region of China, is located off the southern coast of the Chinese mainland. Macau’s economy is dominated by the services sector and there are little natural resources on the island. The economy of the region is driven primarily by gambling and tourism, and the area mainly serves as a playground to people from the Chinese mainland and to those from Hong Kong.
The economy of Macau is the third richest in the world in terms of GDP per person; however, this wealth does not translate to everyone in the country equally. Officially, the poverty rate is claimed at 2.3 percent, but the charitable organization, Caritas, estimates this percentage to be closer to 10 percent. Macau’s political system is also rampant with corruption, which unfortunately hampers the reduction of poverty.
Annual GDP growth rate of 8.8 percent (2017)
The Maldives consists of over 1,190 bordering along the Indian Ocean. Only 188 of the islands are inhabited since the population is concentrated on the larger islands, including the 39 percent of the population living in the capital Malé. The economy of the Maldives is largely driven by tourism, shipping, and fishing. The most recent data on poverty was published in 2009 and it shows the poverty rate to be 15.7 percent improved from 23 percent in 2002.
These emerging economies represent some of the most promising regions on Earth because of their improvement on quality of life. Strong economies are the backbone of both political and social stability and ultimately greater well-being of people. These five countries look poised to fulfill these goals as the fastest growing economies.
– William Menchaca