Best fastest-growing economies in the world

November 28, 2024 - By Elizabeth Samson

Table of Contents

Explore the best fastest-growing economies in the world and discover which countries are leading global economic growth.

Kosovo

Population advantage has fueled Kosovo’s rapid economic expansion. Kosovo has one of Europe’s youngest populations and a growing workforce ready to build the country. About 60% of the population is under 30, which strengthens the job market. Energy, inventiveness, and long-term productivity advantages from a young population drive economic growth. Kosovo’s human capital has driven its economic growth, especially as it embraces higher education, technology, and digital skills.

Global economic integration is another driving force for Kosovo. Kosovo has worked hard to improve commerce and attract foreign investment in recent years. Kosovo’s products and services have entered new markets thanks to trade agreements and EU standards. This worldwide engagement has benefited agriculture, manufacturing, and IT. Kosovo’s strong economic growth is fueled by local demand and globalization.

Infrastructure development is another key to Kosovo’s rapid growth. The government has improved transportation, energy, and communication networks over time. Roads, trains, and energy infrastructure have improved inhabitants’ lives and attracted enterprises to Kosovo. Upgraded infrastructure facilitates trade, lowers corporate expenses, and gives domestic and foreign investors new opportunities. Due to its location as a bridge between Eastern and Western Europe, Kosovo is a regional economic hub and one of the world’s fastest-growing economies.

Kosovo has also developed its finance sector. The banking system is solid and sophisticated, providing a variety of financial services to businesses and people. Kosovo’s financial institutions have helped boost economic growth by providing cash to expanding enterprises and entrepreneurs starting new projects. Kosovo attracts investors due to the government’s economic policies that assure financial stability. Foreign enterprises continue to choose the country for its cheap taxes and business-friendly rules.

Kosovo prioritizes innovation and digitalization. Startups and tech enterprises, especially in software development, e-commerce, and digital services, have increased throughout the country. Kosovo’s government has encouraged start-ups and fostered technical innovation to boost this sector. As the global economy digitizes, Kosovo’s focus on technology and innovation will help it succeed. Kosovo’s fast-growing ICT industry has contributed to its standing as one of the world’s fastest-growing economies.

Kosovo has actively promoted tourism, recognizing its rich history, culture, and natural beauty. UNESCO World Heritage sites and stunning scenery are attracting international tourists to the country. Kosovo is investing in tourism infrastructure, marketing, and services to capitalize on its growing tourism business. Kosovo gains cash from worldwide tourism to complement its other rising businesses.

Kosovo still struggles despite its gains. To ensure that growth benefits everyone, corruption and governance must be addressed. Youth unemployment remains high. However, the government’s reforms and attempts to improve education, infrastructure, and the business climate are projected to show significant outcomes in the future years. Kosovo’s EU entry will also integrate it with the European economy, creating more economic potential.

India

India’s varied and resilient economy drives its swift growth. The country’s economy has shifted from agrarian to service and manufacturing-driven in recent decades. This transition is driven by India’s young population, an asset and economic development driver. India has a large pool of young individuals wanting to work in numerous industries due to its median age of 28. India’s demographic advantage makes it a top investment and talent destination.

The growing middle class in India has driven its rapid economic growth. Demand for consumer products, services, and infrastructure has increased as disposable incomes rise, expanding the home market. India’s economy is becoming less dependent on external forces due to a strong internal market. Digital services, e-commerce, and mobile technology have boosted corporate efficiency and created new opportunities for startups and entrepreneurs, boosting growth.

The tech industry has helped India become one of the world’s fastest-growing economies. The IT services sector has driven GDP development in the country. India has become a global hub for software development and IT outsourcing thanks to TCS, Infosys, and Wipro. India leads in AI, machine learning, and blockchain in addition to traditional IT services. These industries’ rapid expansion boosts India’s worldwide economic standing and growth.

Manufacturing is another major driver of India’s economy. Through “Make in India” and other efforts, India has improved its manufacturing capacity. This government-led program promotes domestic and foreign companies to invest in India’s manufacturing industry, which is growing in automotive, electronics, and textiles. Manufacturers from around the world also like India’s inexpensive labor prices and developing infrastructure. This industry drives economic growth in India by producing jobs and increasing industrial output.

Global commerce is another reason India is one of the fastest-growing economies. India, one of the largest and most diverse economies, can gain from global trade developments. Trade agreements have improved its exports to numerous countries. International enterprises can access over a billion people in India’s vast domestic market, enhancing Indian businesses and products’ reach.

Rapid economic growth is supported by the country’s growing infrastructural priority. India is ensuring long-term economic sustainability by investing in energy, technology, and transportation infrastructure. The Bharatmala Pariyojana (which expands and improves highways) and the Sagarmala Project (which improves port connectivity) aim to establish efficient logistical networks to transfer products and services across the country. Infrastructure upgrades should boost productivity and lower company expenses, boosting the economy.

India’s economic growth has also been driven by government policy. The groundbreaking Goods and Services Tax (GST) reform simplified the country’s complicated tax structure, making corporate operations more efficient and transparent. The government also promotes entrepreneurship, ease of doing business, and foreign direct investment. These reforms are fostering domestic and foreign enterprise, which boosts job creation and economic growth.

To sustain prosperity, India must address economic inequality, unemployment, and infrastructural shortfalls despite its rapid growth. Due to its resilience and ability to adapt to global dynamics, the country can overcome these obstacles. With programs like Digital India, India’s digital economy is growing, demonstrating its commitment to innovation and technology.

Growing global influence supports India’s growth. Increasing participation in international organizations like the G20 and BRICS, as well as diplomatic and trade connections, has propelled the country’s economic power. As India strengthens its political, economic, and technological status on the global stage, its position as one of the fastest-growing economies will undoubtedly rise.

Bangladesh

Bangladesh has struggled with political instability, poor infrastructure, and poverty. However, these obstacles have not slowed the country’s growth. Bangladesh’s textile and apparel sector is crucial to its growth. Bangladesh is the second-largest garment exporter in the world, taking advantage of its low labor costs and talented workforce to become a global supply chain participant. The textile sector alone generates a large share of export profits, employing millions and sustaining the economy.

Remittances from Bangladesh’s sizable diaspora have increased alongside its garment sector. Remittances, especially from millions of Bangladeshis working in the Middle East, are vital to the country’s financial stability. These inflows boost local consumption, investments, and employment, supporting Bangladesh’s status as one of the world’s fastest-growing economies.

Bangladesh’s concentration on human capital development has also contributed to its success. Literacy, healthcare, and vocational training have been prioritized throughout time. These education and healthcare initiatives have created a more productive, global-competitive workforce. By expanding employment and basic amenities, Bangladesh has lifted its people out of poverty. Due to these human capital investments, poverty rates have dropped and the economy has grown.

Infrastructure development has also contributed to Bangladesh’s rapid economic growth. The country has improved its infrastructure with large-scale investments in roads, ports, and energy generation. Bangladesh has increased commerce and international direct investment by building sophisticated transportation networks and Chattogram port, its busiest seaport. This infrastructural advancement has reduced logistics costs, improved supply chain efficiency, and attracted additional investment, strengthening Bangladesh’s regional economic powerhouse status.

The country’s economic diversity has also driven growth. Bangladesh’s export business has historically relied on textiles and apparel, but agriculture, IT, and manufacturing are growing. The information technology sector is showing great promise because to the government’s promotion of technological innovation and start-up culture. With a young, tech-savvy population and increased internet access, Bangladesh is becoming a hub for digital innovation and software outsourcing, driving global demand for its IT services.

Agriculture still employs a large amount of Bangladesh’s people and ensures food security. While the country has diversified its economy, agriculture still supports millions, and the government has worked to boost agricultural productivity with better irrigation systems, crops, and modern farming methods. This has increased harvests and exports of rice, tea, and shellfish, strengthening the nation’s economy.

Bangladesh prioritizes industrialization, infrastructure, and trade liberalization in its economic strategy. Key reforms have improved business conditions, financial access, and bureaucratic efficiency. These policies have kept Bangladesh attractive for international investment, attracting global corporations and expanding trade partnerships.

The nation’s demographic advantages have also helped its economy. Bangladesh has a demographic dividend from its young, vibrant population, which increases labor force demand for products and services. This young population is also getting more educated and competent, giving the country the people resources to diversify its businesses and progress up the manufacturing and technology value chain.

Bangladesh has maintained growth despite political instability, natural calamities, and global economic uncertainty. Being one of the fastest-growing economies in the world is due to its ability to adapt and overcome challenges. Growth is shown in increased living standards, per capita income, and poverty rates, not only GDP.

Vietnam

After the war, Vietnam was among the poorest nations, but the Đổi Mới economic reforms in 1986 led to a spectacular reversal. The country moved from central planning to a socialist market economy with these reforms. The change to liberal trade rules encouraged foreign investment and private business. Vietnamese GDP growth has continuously outpaced the global average, making it one of the world’s fastest-growing economies.

Vietnam’s manufacturing sector drives its economic growth. The country is a global hub for low-cost textile, electronics, and consumer products manufacture. Companies from around the world have set up factories in Vietnam to produce goods for international markets due to its low labor costs and competent workforce. The country’s exports have grown gradually due to this sector. Vietnam is a leading Asian exporter of smartphones, apparel, and footwear. Manufacturing produces jobs and boosts logistics, infrastructure, and technology.

Vietnamese inclusion with the global economy is another major element in its rapid rise. The government has signed many FTAs with Asia, Europe, and the Americas, expanding international trade. Membership in regional groups like ASEAN has helped its economy. Vietnam’s trade agreements with the EU and US have expanded its markets and diversified its exports. Its access to global markets has solidified its status as a top fast-growing economy.

Vietnam’s agriculture industry is vital to its economic prosperity, along with manufacturing. Rice, coffee, and shellfish are among its top exports. Reforms have modernized Vietnam’s farming, enhancing productivity and efficiency. As the country has evolved toward value-added agricultural products like processed foods, it can compete globally. Agriculture diversification has supported economic expansion and industrial success.

Vietnam’s young and educated population contributes to its strong economy. The median age is 30 years, and more young people are entering the labor each year. This demographic advantage spurs innovation and entrepreneurship. The government has substantially invested in education and vocational training to equip the workforce for modern industry. Through STEM (science, technology, engineering, and mathematics) education, Vietnam is preparing for a future of high-tech companies and digital economic growth, which will boost its ranking among the world’s fastest-growing economies.

Vietnam’s progress has also relied on infrastructure. For economic growth, the government has emphasized transportation, energy, and telecommunications infrastructure upgrades. Ho Chi Minh City and Hanoi have rapidly urbanized, building new business districts, shopping malls, and residential areas. Businesses can now transport goods domestically and internationally thanks to the country’s port expansion and road improvements. Vietnamese enterprises and multinational corporations have grown due to these infrastructure upgrades, making Vietnam a worldwide economic actor.

Sustainable growth requires macroeconomic stability, which the Vietnamese government has achieved. Low inflation rates and stable currency, the đồng, have been seen. The government’s careful budgetary policies keep national debt under control. These initiatives have boosted investor confidence and fostered local and international corporate growth. Vietnam remains one of the world’s fastest-growing economies due to its economic stability.

Tourism has also helped Vietnam’s economy. The country attracts tourists from throughout the world with its rich culture, breathtaking scenery, and bustling towns. Hotels, airports, and transportation have been upgraded by the government to accommodate demand. Hanoi, Ho Chi Minh City, Da Nang, and Phu Quoc benefit from tourism jobs and economic growth. Tourism growth will diversify Vietnam’s economy and assure its prosperity.

Vietnam has a promising economic future. Modernization, technology investment, and globalization prepare the country for growth. Vietnam’s low labor costs, young workforce, and trade agreements entice corporations looking for alternatives to China. Vietnam’s ability to adapt and innovate, combined with a government focused on business climate, makes it one of the fastest-growing economies.

Ethiopia

Agriculture was Ethiopia’s main industry, and most people lived off it. Ethiopia has diversified its economy away from agriculture and into services, construction, and manufacturing in recent years. Diversification is one of the reasons Ethiopia is one of the fastest-growing economies. The country’s GDP expanded by 10% yearly in the 2010s, far above the global average.

Ethiopia’s government shaped this growth. Ethiopia has invested strategically in infrastructure and human resources through five-year programs. The country’s focus on transport and energy infrastructure is significant. New roads, railways, and airports have produced jobs and attracted international investors, improving connectivity and access to global markets. The Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile is one of Africa’s most ambitious infrastructure projects, designed to enhance energy capacity and economic growth.

Manufacturing and industrial growth have also driven Ethiopia’s growth. The Industrial Parks Development Corporation (IPDC) has helped develop industrial parks nationwide, attracting foreign direct investment (FDI) in textiles, leather, and agro-processing. Due to favorable policies, cheaper labor costs, and access to raw materials, Ethiopia’s leather and textile industries are becoming more competitive globally.

Another reason Ethiopia is one of the fastest-growing economies is its young and educated people. Ethiopia has one of Africa’s youngest populations, creating a huge, active workforce. Literacy and technical and vocational training have improved due to government investment in education and skills development. This concentration on human capital has met domestic demands and attracted foreign corporations seeking youthful talent and competitive labor.

The Ethiopian government has also eased business with many economic reforms, making the country an appealing investment destination. These reforms include foreign investment tax incentives, free trade zones, and simplified business registration. Partnerships with international organizations and governments have also improved Ethiopia’s economic environment and attracted money. This helps Ethiopia maintain strong growth despite global economic uncertainty.

Ethiopia’s economic rise is also due to regional commerce. It benefits from the African Union’s (AU) regional integration and trade initiatives like the African Continental Free Trade Area due to its strategic location. Ethiopia now has access to more markets because to regional cooperation and economic links with its neighbors, providing its enterprises an edge. Membership in regional groups like the East African Community (EAC) has allowed the country to access wider regional markets, boosting exports and imports.

Tourism is another rising Ethiopian industry. From the rock-hewn churches of Lalibela to Aksum, the country is attracting international tourists with its rich history and culture. The government has invested in hotels, transportation, and promotion to boost tourism’s economic impact.

Ethiopia confronts obstacles that could slow its growth despite these outstanding achievements. Political instability, ethnic strife, and climate change’s influence on agriculture threaten the economy. Despite Ethiopia’s prosperity, poverty and inequality remain major challenges, with vast parts of the population living in poverty.

Ethiopia has made progress and continues to do so. The country’s capacity to maintain strong growth rates, attract foreign investment, and update its infrastructure positions it to remain one of the world’s fastest-growing economies. Ethiopia can remain a major factor in Africa’s economic future by diversifying its economy, investing in infrastructure, and creating a business-friendly climate.