Though the U.S. is known as the world’s largest economy, many of the world’s fastest growing economies are those of developing nations. Among factors such as foreign aid, increased tourism and more trade, developing nations become some of the world’s fastest growing economies as more people are lifted out of poverty and become consumers.
Here are five of the world’s fastest growing economies based on World Bank data from 2013-2015 (the most recent data available):
· 2013: 1.4%
· 2014: 5.2%
· 2015: 7.8%
After the world financial crisis of 2007-2009, the economic activity in Ireland dropped sharply. After reaching the world’s largest budget deficit in 2010, Ireland accepted a loan from the European Union and International Monetary Fund to provide capital to its banking sector. In addition to the loan, lower taxes and increased public spending helped Ireland’s economy recover and reach the EU’s highest growth rate for 2014 and 2015. Low corporation taxes also attracted multinational companies to Ireland.
· 2013: 9.9%
· 2014: 10.3%
· 2015: 10.2%
The economy of Ethiopia has grown quickly for the past decade. This is mostly due to progress in Ethiopia’s agriculture and service industries. New infrastructure connecting previously isolated regions of the country also fuels economic growth. Rich in ancient cultures, Ethiopia is now one of the world’s top tourist destinations, providing millions of jobs to Ethiopians.
However, as of 2014, nearly 30 percent of Ethiopians still lived below the poverty line. Ethiopia is still susceptible to droughts, with a severe drought occurring from 2014-2015. Droughts can be catastrophic for the 80 percent of Ethiopians that are employed in the agriculture industry.
· 2013: -2.4%
· 2014: 4.2%
· 2015: 9.4%
Expanded air travel to the Pacific has increased tourist traffic in the island nation. While tourism is the main contributor to the economy of Palau, it also thrives from trade and fishing. Palau exports shellfish, tuna, copra (dried coconut kernels for oil making) and garments. Palau has also received about $700 million in aid from the U.S. from 1994-2009 under the Compact of Free Association, in exchange for unrestricted access to Palau’s land and waterways for strategic purposes.
- Ivory Coast
· 2013: 8.7%
· 2014: 7.9%
· 2015: 8.6%
The West African country is the world’s largest producer and exporter of cocoa beans. It is also a large producer and exporter of coffee and palm oil. Over two-thirds of Ivory Coast’s population is employed in agriculture or related activities.
Though Ivory Coast was plagued by a recession in the ‘90s, a civil war from 2002-2007 and sporadic violence in years following, the country has remained mostly peaceful since 2011. This has attracted foreign investors and promoted economic growth. While the poverty rate has decreased, 46 percent of the population still lives in poverty and a small number of arms still remain in the nation.
· 2013: 8%
· 2014: 8.1%
· 2015: 8%
Formerly part of the Soviet Union, the government of Uzbekistan still operates a command economy, regulating production and prices. Economic growth in Uzbekistan is driven mainly by state-led investments. The majority of the population lives in rural areas and the main focus of agriculture is cotton. Uzbekistan also exports gold and natural gas.
Though these are only the top five of the world’s fastest growing economies from 2013-2015, many other developing nations are not far behind. The economies of Nauru, Laos, India, Tanzania, Cambodia, Burma and the Dominican Republic have also grown quickly in recent years.
– Cassie Lipp