The 10 Fastest-Growing Economies to Watch in 10 Years

The fastest-growing economies are leading the charge in transforming global economics in the rapidly changing global environment. They make major contributions to general development, trade, innovation, and the generation of jobs. These economies have a critical role in raising national income, raising standards of living, decreasing poverty, and boosting competitiveness internationally. In addition to providing the funding required for sustainable development projects, economic growth serves as a foundation for social progress and stability.

Growth scenario

Several countries are positioned to see extraordinary rates of growth in the next years, turning them into global economic titans. According to projections for the next decade, India leads with an impressive future real growth estimate of 6.3%, although its per capita growth lags slightly at 5.3% due to its vast population of 1.44 billion. Indonesia follows closely with an estimated growth rate of 5.5% and a per capita growth of 4.8%.

Saudi Arabia is likewise headed in a positive direction, with a projected growth rate of 4.6% and a per capita estimate of 3.0%. Both China and Turkey are expected to expand at 4.0%, although China's per capita growth is expected to be somewhat higher at 4.3% than Turkey's at 3.6%. With South Africa's per capita growth at 1.9%, Russia and South Africa have slower growth rates, both at 2.9%.

On the other hand, developed economies, such as the US, the EU, and Japan, are expecting more moderate growth. The United States expects 1.2% per capita growth and 1.4% overall growth. South Africa has one of the lowest per capita growth rates at -1.73%, while Germany and Italy are on the lower end, predicted to see negative growth at -0.5%.

Interestingly, among the leading economies, India exhibits a modest strength gauge of 0.30 and a low health gauge of 0.07. However, its happiness gauge stands at a concerning -1.41, indicating challenges in well-being. Similarly, Indonesia has a low happiness gauge of -0.36 and equally low strength (0.17) and health (0.13) scores.

Saudi Arabia presents a more balanced picture with a strength gauge of 0.15, a health gauge of 0.45, and a happiness gauge of 1.14. In contrast, China shows stronger metrics with a strength gauge of 0.80 and a happiness gauge of 1.27, despite a relatively low health gauge of 0.30.

Population growth and economic sectors

The rates of population increase are important for determining the future paths of these economies. India is growing its population at a rate of 0.92%, with Indonesia growing at a rate of 0.93%. Turkey's growth rate is 0.7%, while Saudi Arabia's 1.5% growth rate is the highest. By comparison, China and Russia are growing at a rate of -0.2%, which is a little fall.

Information Technology (IT), renewable energy, healthcare, infrastructure, and pharmaceuticals are some of the major industries driving India's growth. By 2030, the nation wants to have 450 gigawatts (GW) of renewable energy capacity. In addition, it is anticipated that demographic shifts and increasing wealth will drive India's healthcare sector, which is projected to rise from INR 0.91 trillion in 2024 to INR 1.5 trillion by 2029.

Indonesia is concentrating on downstream mining, particularly in the bauxite and nickel industries, in an effort to establish itself as a global leader in electric vehicle batteries. Saudi Arabia's Vision 2030 places a strong emphasis on reducing reliance on oil by making investments in technology, mining, tourism, and renewable energy.

Furthermore, Foreign Direct Investment (FDI) plays a crucial role in fueling these economies. In the first quarter of 2024, the top FDI recipients were the United States (USD 76 billion), the Netherlands (USD 22 billion), and Brazil (USD 21 billion). In 2022-2023, India was the eighth-largest recipient of foreign direct investment (FDI) globally, bringing in USD 70.9 billion.

While FDI in China has slumped by 31.5% year-on-year to CNY 580.19 billion (USD 81.80 billion), Turkey saw a substantial increase of 94.9%, reaching USD 842 million in June 2024. Similarly, Saudi Arabia recorded a 5.6% increase in FDI inflows to 9.5 billion riyals (USD 2.53 billion).

The fastest-growing economies will continue to play a pivotal role in transforming the global economic landscape. These economies have enormous growth potential and can make major contributions to the advancement of the global economy with the right strategies and investments in key sectors.