Businessman keeping the growth in economy (© Elnur / Fotolia.com)
A healthy gross domestic product (GDP) growth rate is considered to be one that is sustainable so that they economy can remain in the growth phase for as long as possible. Several countries are exhibiting extremely healthy economies on the global platform.
Gross domestic product (GDP) represents the entire economic output from a country in a year. It refers to how much more the economy gained in the previous quarter. An ideal GDP rate is around 2 to 3 percent.
Additionally, the rate of inflation the unemployment should be in balance in order for an economy to be considered healthy. For this to happen, the rate of unemployment should be somewhere between 4.7 percent and 5.8 percent, with a target inflation rate of no more than 2 percent.
Countries with the Healthiest Growth Rate in the World
China has gotten a lot of attention in recent years for their healthy economy. However, China isn’t the only country that is showing a healthy growth rate. Below is a list of countries that have the highest projected compound annual growth rate to date, with numbers that are exceeding those that are suggested for a healthy economy.
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- China. With a gross domestic product compound annual growth rate of more than 7.10 percent between 2014 and 2017, China has one of the healthiest economies in the world. This country’s economy is largely based on manufacturing and exports. Many experts predict that it will surpass the US in the span of the next 10 years. However, issues could arise as a result of the economy is transitioning into one that is consumption based. Moreover, the per capita income is lower than the world’s average.
- Tanzania. Between 2014 and 2017 the compound annual growth rate of the gross domestic product in Tanzania is estimated to be 7.5 percent. High growth rates in this country are the result of tourism and the production of gold. Additionally, this country also has a strong telecommunications, banking, energy and mining industry, as well as an agricultural industry. In regard to per capita income, though, Tanzania is one of the poorest countries.
- Bhutan. With a gross domestic product compound annual growth rate of 7.55 percent between 2014 and 2017, Bhutan also has a healthy economy. Though this country is rather small and remains relatively underdeveloped in comparison to other nations, it still stands tall in regard to its economy. The agriculture, hydropower and forestry industries all play vital roles in this country’s economy. Bhutan exports a massive amount of hydropower to India, which means that there is a potential for the country to achieve sustainable growth in the near future, too.
- India. The compound annual growth rate of the gross domestic product of India is 7.5 percent between 2014 and 2017. The sectors that contribute the most to this country’s economy include the service industry; it accounts for about two-thirds of the country’s output. However, issues with poverty, corruption and discrimination will prevent India from reaching its full potential.
- Uzbekistan. This country has been shifted from its Soviet roots and making its place on the map in the world’s economy. Between 2014 and 2017, Uzbekistan’s compound annual growth rate was 7.87 percent. Their largest export is cotton. Gold and natural gas also contribute to the country’s economy.
- Cote d’Ivoire. Around two-thirds of the people who live in Cote d’Ivoire work in agriculture, making this the largest sector of the country’s economy. Between 2014 and 2017, the compound annual growth rate of this country’s gross domestic product was 7.80 percent. The product they produce and export the most of is cocoa beans, as well as palm oil.
- Papau New Ginea. This is another small country that has a mighty economy. With a compound annual growth rate of the gross domestic product being 7.6 percent between 2014 and 2017, Papau New Ginea has certainly earned a reputation for having a stable economy. An estimated 85 percent of the population of this country works in the agriculture industry. A small sector exports a variety of natural resources, such as gold, oil and copper. However, it should be noted that there are issues with the government that could lead to issues, including poor investments and infrastructure.
- The Democratic Republic of the Congo. With an impressive compound annual growth rate of the gross domestic product being a staggering 8.62 percent between 2014 and 2017, the Democratic Republic of the Congo has earned the title of having one of the healthiest economies in the world. This country has a large wealth of natural resources. However, these resources have not been properly monetized as a result of political conflict and instability.
- Turkmenistan. Cotton and gas are the leading exports of Turkmenistan, which have allowed the country’s compound annual growth rate to reach more than 9 percent between 2014 and 2017. This country has the fourth-largest reserve of gas in the world and has started sending it to China in recent years. There are talks of their gas being shipped to Europe in the next few years, too, which would lead to an even healthier economy.
- Ethiopia. This rural nation has the most impressive economy in the world at present date. Between 2014 and 2017, the compound annual growth rate of Ethiopia’s economy was 9.7 percent. Their economy is largely based on agriculture; however, there has been a push to generate textiles and energy, as well as a manufacturing, in recent years. However, while the country has seen an impressive growth rate in regard to its gross domestic product, its per capita income is one of the lowest on the globe.
The information offered here is a clear indication that more developed countries are not always leaders in regard to their economic position. The countries that have the highest economy are largely underdeveloped and are primarily based on agriculture. Moreover, these country’s do face issues that impact their overall position in the world, such as low per capita income and unstable governments.