15 Fastest Growing Economies in the World in 2022

In this article, we will look at 15 of the fastest growing economies in the world. If you want to see more of the fastest growing economies in the world, go directly to 5 fastest growing economies in the world in 2022.

Fast-growing countries are countries whose real GDP is growing significantly above the average. With a rapidly growing economy, more goods and services are produced in a country and the country as a whole becomes wealthier.

The IMF explains real GDP: “One thing people want to know about an economy is whether its total output of goods and services is rising or falling. But because GDP is collected at current or nominal prices, we cannot compare two periods without doing To determine “real” GDP, its nominal value must be adjusted for price changes to allow us to see whether the value of production has increased because production has increased or simply because prices have increased. tool called the price deflator is used to adjust GDP from nominal prices to constant prices.

GDP is important because it gives information about the size of the economy and how well an economy is performing. The real GDP growth rate is often used as an indicator of the general health of the economy. Generally speaking, an increase in real GDP is interpreted as a sign that the economy is doing well. When real GDP rises sharply, employment is likely to rise as companies hire more workers for their factories and people have more money in their pockets.”

In terms of global growth, the IMF wrote in October that it expects global real GDP growth to slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023. Growth real GDP in 2021 was above average due to the pandemic. bounce.

For all of the countries on our list of the 15 fastest growing economies in the world in 2022, each is growing faster than 3.2% in terms of real GDP growth for 2022.

Developing countries

Given this year’s high inflation, the US Federal Reserve had to raise interest rates six times in 2022.

As a result, yields on US Treasuries rose significantly. As of 10/11, the 3-month US Treasury yield is 4.16%, up 412 basis points in one year. The yield on the 2-year US Treasury is 4.33%, up 382 basis points in one year. Meanwhile, the 10-year US Treasury yield is 3.81%, up 226 basis points in one year.

Although US inflation has recently risen less than expected, US bond yields could be above average for some time. Due to rising Treasury yields, a lot of capital has flowed back into the United States from developing countries. As a result, global growth has slowed.

Nonetheless, some countries have been able to grow their real economy despite the headwinds, with several growing rapidly thanks to a rebound in tourism. Several other countries have benefited from higher oil prices.

Many of the countries on our list of the 15 fastest growing economies in the world in 2022 are also developing countries that have a naturally faster potential growth rate at their stage of development. It is generally easier for economies that are still developing to grow faster than for fully developed countries. While developed countries need to innovate at the cutting edge of technology or other sectors to grow their economy, countries that are not fully developed can take what works in developed countries and apply it to their country.

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Methodology

For our list of the 15 fastest growing economies in the world in 2022, we took the 15 fastest growing economies from the IMF’s real GDP growth list in 2022.

The IMF, otherwise known as the International Monetary Fund, is “an organization of 190 countries, working to foster global monetary cooperation, ensure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and to reduce poverty in the world”.

15 fastest growing economies in the world in 2022

15. Panama

Real GDP growth in 2022 According to the IMF: 7.5%

Due to the pandemic, Panama’s GDP shrank by 17.9% as construction was halted for several months and airports closed for a while. Although GDP grew by 15.3% in 2021, the country’s GDP has not reached the same level as before the pandemic. Given the country’s potential GDP growth rate and the catch-up growth left over from the pandemic recovery, the Panamanian economy is expected to grow by around 7.5% this year.

14. Saudi Arabia

Real GDP growth in 2022 According to the IMF: 7.6%

Since Russia is a big exporter of oil and relations between Russia and the West are not good at the moment, energy prices have increased in 2022 compared to 2021. As the a major oil exporter, Saudi Arabia benefited from higher prices with more exports. Given the boom in exports and its internal organic GDP growth rate, the Saudi economy is expected to grow by 7.6% in 2022.

13. Colombia

Real GDP growth in 2022 According to the IMF: 7.6%

Colombia’s economy is expected to grow by 7.6% this year given the continued recovery in consumption from the pandemic. With strong domestic demand, in addition to the government’s prudent macroeconomic and fiscal management, Colombia’s middle class is expected to continue to grow this year and in the future.

12. The Bahamas

Real GDP growth in 2022 According to the IMF: 8%

Real GDP in the Bahamas is expected to grow by 8% in 2022 as tourist arrivals rebound due to easing vaccination efforts and easing travel restrictions. Construction is also expected to increase in the country. According to the World Bank on October 22, real GDP growth in the Bahamas is expected to slow to 4.1% in 2023 as capital investment returns to pre-pandemic levels.

11. Maldives

Real GDP growth in 2022 According to the IMF: 8.7%

The Maldives, a country of about 550,000 people spread across 185 islands in South Asia, is expected to experience substantial growth this year thanks to a faster-than-expected rebound in tourism. Although inflation is a headwind, the economy of the Maldives is expected to grow by 8.1% on average over the period 2023-2024. For 2022, the IMF estimates that the country could increase its real GDP by 8.7%, although a recent economic update indicates that there is potential for even faster growth this year.

10. Kuwait

Real GDP growth in 2022 According to the IMF: 8.7%

In 2021, Covid-19 led to an 8.9% contraction in Kuwait’s economy. With a rebound in domestic consumption, the country’s economy emerged from a two-year recession in 2021 with real GDP growth estimated at 2.3%. Like Saudi Arabia, Kuwait has benefited from higher oil prices in 2022. Since the country is quite small and has a current production capacity of 3.15 million barrels per day, Kuwait has quantities substantial amounts of oil to export. Given its production, oil represents 95% of the country’s exports and around half of its GDP. The IMF expects Kuwait’s real GDP to grow by 8.7% in 2022.

9. Ireland

Real GDP growth in 2022 According to the IMF: 9%

According to the IMF, Ireland’s economy is expected to grow by 9% in 2022, which would be a great achievement given that the country is already one of the wealthiest in the world in terms of GDP per capita. One of the reasons for the rapid expansion could be the pandemic rebound. Since Ireland is already a developed country, the country’s growth may not be significantly above average in the future.

8. Georgia

Real GDP growth in 2022 According to the IMF: 9%

With a GDP per capita of $5,039.4 in 2021, Georgia has substantial growth potential as it develops. Although inflation remains a headwind for the country, the IMF expects the Georgian economy to grow by 9% this year. The country is also expected to grow by 4% in 2023, which would likely be even higher were it not for the expected global economic slowdown next year.

7. Saint Lucia

Real GDP growth in 2022 According to the IMF: 9.1%

Saint Lucia is an Eastern Caribbean island with picturesque beaches and luxury resorts. Given that Saint Lucia’s economy has been heavily impacted by the pandemic with the drop in tourism in 2020, the IMF expects the country’s economy to grow by 9.1% this year as that tourism rebounds. The expected real GDP growth rate ranks Saint Lucia 7th on our list of the 15 fastest growing economies in the world in 2022.

6. Iraq

Real GDP growth in 2022 According to the IMF: 9.3%

Like Saudi Arabia and Kuwait, Iraq is a major oil producer with a crude oil production capacity of around 4.6 million barrels per day. With higher oil prices in 2022, the Iraqi economy has benefited and is expected to grow by 9.3% as a result. Considering its projected growth rate for 2022, the country ranks 6th on our list of the 15 fastest growing economies in the world in 2022.

Click to continue reading and see the 5 fastest growing economies in the world in 2022.

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Disclosure: None. 15 fastest growing economies in the world in 2022 is originally published on Insider Monkey.

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