GDP of the world’s fast-growing economies
In assessing the economy of any country, always pay attention to the growth rate of its economy. Moreover, the rate of growth of the indicator and its stability play a significant role in this indicator. Frequently, the GDP growth rates of countries are taken as a basis in this calculation and are compared with each other. But this approach is not complete and therefore you should pay attention to the stability of GDP growth and such indicators as inflation and employment. These figures in combination will give a more complete picture of the growth rate of a particular country.
Looking ahead, it is worth noting immediately that countries with world economies will not be included in the list of fast-growing economies. Since they already have the maximum possible values of GDP indicators, which in 1-2% are considered as very positive for these countries. At the same time, a decrease of 0.1-0.5% for a market economy is also more significant than for developing economies.
Therefore, this article focuses on emerging market countries, which, in turn, are more promising for investment in the context of renewed optimism in emerging markets.
India’s economy is one of the fastest growing economies in the world and has already bypassed China’s economy, which has previously been the global growth leader in some indicators.
In recent years, India’s GDP shows a very significant growth rate in addition to stable growth. It makes this country one of the countries with the most stable growth of the world economy.
Fig. 1. India’s GDP growth rates chart (y/y)
Also such important economic indicators as the growth of inflation, which contributes to improving consumer sentimentin, support the Indian economy. On the other hand, stable employment growth is also a driver for economic growth.
The Chinese economy also remains very fast-growing, but in comparison with the same India it demonstrates noticeably lower indicators, which, in turn, is connected with the achievement of peak indicators for the period of 2010 and the persistence of trade tension with the United States, that slowed growth China’s economy to some extent.
Fig. 2. China’s GDP growth rates chart (y/y)
In addition to the largest emerging economies of the world (EM7) – China, India, Brazil, Russia, Mexico, Indonesia and Turkey, In 2018 it is worth noting the growth of the economies of such countries as Singapore, Indonesia and Vietnam, where the rates are less stable, but continue to show growth while some countries from this list remain under pressure.
On the African mainland, it is worth noting such countries as: Ghana and Ethiopia, which show significant economic growth due to investments in this region. Also, the World Bank has high hopes and forecasts for these countries, which makes these economies very promising for future investments on a long-term basis.
Emerging markets remain very promising for investment, as undervalued assets.