For years, the USA has led the way as the fastest growing economy in the world; however, for the better part of the last 15 years, the average annual GDP only grew by 3%. This has created opportunities for developing countries to get their moment in the spotlight. The future of global economics is always unpredictable, but there are certain countries which have positioned themselves in a way that leaves them poised to lead the pack in the coming years. If you’re curious to find out which countries top the list, read on to learn who has the fastest-growing economy in 2023. Some of them might just surprise you.
1. United Arab Emirates
The United Arab Emirates (UAE) is one of the fastest growing economies in the world. The UAE has a strong focus on infrastructure, which is driving its rapid economic growth. It has invested heavily in transport networks and highways, as well as ports and airports, which have allowed it to become an important hub for international trade. The country also benefits from its strategic location at the crossroads between Europe, Asia and Africa.
In addition to these investments in infrastructure, the UAE has also encouraged foreign direct investment into sectors such as tourism, construction and real estate development through generous tax incentives. The Minister of Economy projected that inflation rates will decrease in 2023. When you understand what causes inflation, this is remarkable considering rates are rising in the rest of the first world. The UAE is rich in natural resources, owning over 10% of the globe’s oil reserves and the fifth largest gas reserves. In fact, oil exports make up almost 30% of the country’s GDP.
Egypt has experienced dramatic economic growth over the last decade, partly thanks to its strategic location and access to both Africa and the Middle East. Additionally, Egypt’s government has plans to introduce various pro-growth policies such as diversifying its economy, encouraging foreign investment and providing incentives for businesses that create new jobs. Egypt also benefits from an abundance of resources, including natural gas reserves and agricultural exports, which have contributed towards a higher GDP and made Egypt ripe for economic expansion.
Qatar enjoys a strategic location and abundant natural resources. It has the world’s third-largest natural gas reserves, which have enabled it to become a major exporter of liquefied natural gas (LNG). This has driven economic growth and attracted high levels of foreign investment, much of which goes into developing infrastructure such as roads, ports and airports. In addition, Qatar boasts a strong banking system with sophisticated financial services that also attract international investors. Qatar is increasingly becoming an important regional hub for business activities as well as tourism thanks to its excellent travel connections across the Middle East region.
4. Saudi Arabia
Saudi Arabia boasts large oil reserves, has invested in infrastructure and technology, diversified itself from oil-dependent revenue streams and is increasingly focused on economic development. The country’s government has heavily invested in several sectors, including tourism, manufacturing, healthcare and education. Furthermore, Saudi Arabia has created attractive investment opportunities for foreign investors through Vision 2030 – an ambitious plan formulated by the Kingdom to transform its economy into one of the most competitive in the world by 2030.
China is one of the fastest growing economies in the world thanks to its large population and a rapidly increasing rate of economic development. China’s government has implemented policies that have enabled it to capitalize on its massive labor force, attract foreign investment and liberalize markets. Additionally, as China has become more tightly integrated into the global economy through trade agreements, access to technology and capital resources has increased substantially which has helped to fuel growth for Chinese businesses. Finally, China’s commitment to infrastructure upgrades such as improved transportation networks have also contributed significantly to this impressive economic growth.
India is tipped to be the fastest growing economy in 2023 due to its large population, growing GDP of 6.1% and increasing foreign investment. India has a thriving services sector with an ever-expanding market for technology, business process outsourcing and medical tourism. Additionally, India’s manufacturing industry is also rapidly expanding driven by investments from both domestic and international sources. Reforms such as the Goods and Services Tax (GST) implemented since 2017 have helped to streamline taxes within the country which has greatly improved the ease of doing business in India. These factors combined with fiscal incentives such as Make in India are driving economic growth at a rapid rate, making it one of the most promising destinations for investors in 2023 and beyond.
It is evident that the fastest growing economies in 2023 will be those countries which are already experiencing high economic growth rates and whose governments have taken proactive steps to strengthen their respective economies. While there is significant potential for these nations to expand economically in the coming years ahead, they must also guard against any external shocks or macroeconomic downturns that could hamper their progress.