The International Monetary Fund (IMF) has released its latest World Economic Outlook report, which forecasts the global economic growth for the next few years. According to the report, India is expected to be among the top three fastest growing economies in 2024, with a projected GDP growth rate of 6.3%.
Macao and Guyana Lead the List of Fastest Growing Economies
The report ranks the countries based on their expected GDP growth rates in 2024. The top spot is taken by Macao, a special administrative region of China, which is predicted to grow by a whopping 27.2%. Macao’s economy is heavily dependent on tourism and gaming, which account for over 60% of its jobs and 70% of its GDP.
The second place is occupied by Guyana, a small South American country with a population of less than a million. Guyana is expected to grow by 26.6% in 2024, thanks to its booming oil sector. Guyana has recently discovered over 11 billion barrels of oil reserves in its offshore Stabroek Block, which is being developed by an Exxon Mobil-led consortium.
India Ranks Third Among the Fastest Growing Economies in Asia Pacific
India, the world’s largest country by population, is forecasted to grow by 6.3% in 2024, making it the third fastest growing economy in Asia Pacific and the ninth fastest growing economy in the world. India’s growth is driven by its large domestic market, its young and skilled workforce, its reforms in various sectors, and its resilience to the Covid-19 pandemic.
India’s data and forecasts are presented on a fiscal year basis, starting from April. The IMF report also notes that India’s growth prospects depend on the speed and effectiveness of its vaccination program, as well as its fiscal and monetary policies.
Sub-Saharan Africa Dominates the List of Fastest Growing Economies
Sub-Saharan Africa accounts for half of the top 20 list of fastest growing economies in 2024, with Niger (+11.1%) and Senegal (+8.8%) leading the region. The IMF report attributes the strong growth performance of these countries to their favorable demographics, their diversification of exports, their investment in infrastructure, and their improved governance.
However, the report also warns that these countries face significant challenges such as political instability, security threats, climate change, and debt sustainability. The report urges these countries to implement structural reforms, enhance social protection, and mobilize domestic revenue to support their growth.
Global Economic Growth Expected to Moderate After 2023
The IMF report projects that the global economy will grow by 5.9% in 2023 and 2.9% in 2024, after a sharp contraction of 3.1% in 2020 due to the Covid-19 pandemic. The report expects that the recovery will be uneven across regions and countries, depending on their vaccination rates, policy support, and structural factors.
The report also highlights the risks and uncertainties that could affect the global economic outlook, such as new variants of the virus, supply chain disruptions, inflationary pressures, social unrest, geopolitical tensions, and cyberattacks. The report calls for more international cooperation and coordination to address these challenges and ensure a more inclusive and sustainable recovery.
