The Fastest Growing Economies in the World in 2024

The world has over 200 economies of different countries and territories with their private economies based on different aspects of import and export, chief industries, geopolitical situations, private consumption, and population growth. Just like with a growing company, a growing economy may be fruitful to invest in while their state bonds and their stock ETFs are low and then sell them at a profit. With these and other factors in play, what are the fastest growing economies in the world, and which one is the fastest growing economy of them all?

The 6 Fastest Growing Economies in 2024

1. Macau, Gambling on Their Future

Macau or Macao, the special administrative region of the People’s Republic of China, is showing an impressive recovery from the COVID lockdowns that have plagued the world. It affected China more than ever as only in 2022, China began to relax its quarantine policies. As reported by Outsource Asia, the 26.8% dip in the economy down from the lockdowns will lead to a slow and steady rise in the region’s economic recovery, albeit at a far fast rate with 58.9% percent this year. This makes Macau the undisputed fastest growing economy in the world as of 2024.

Despite its immense growth after years of decline due to the lockdown policies, Macau or Macao SAR is not projected to have immense growth this year. According to Focus Economics, Macau will only grow, on average, by 11.9% from 2023 to 2026. This means that they may even see losses due to their current restrictions on foreign tourism outside of China, as Macau represents their main source of economic growth thanks to their status as the “Las Vegas of the East” for its massive gambling enterprises.

It is also worth noting that because Macau is a Chinese dependency, fluctuations in the Chinese economy as well as government policies can affect Macau quite severely, as seen with the years of quarantine. Therefore, if one wants to invest in Macanese instruments, it is worth being updated on Chinese news as well.

2. Guyana, the New Oil Princedom

The South American country has accelerated its oil production from close to zero through the COVID pandemic and now through the Russian-Ukrainian War. They had the perfect discoveries during the perfect times to have them. Their ability to sell oil to Western powers during the time of economic slowdown and sanctions on the Russian oil industry has made their economy boom. According to Oil Price, with about 400,000 oil barrels produced a day, the GDP has shown enormous growth, even surpassing the 50% mark in the last few years. It is forecasted to be around 26.6% in 2024.

On top of that, Focus Economies reports that Guyana will expand its energy sector beyond just oil production, similarly to other oil countries, to continue its rapid growth. They project to have 25.8% economic growth from 2023 to 2026 on average with 26.6% in 2024. This makes Guyana the second fastest growing economy in the world in 2024, and it is possible Guyana would become the fastest growing one in the upcoming years.

The World Bank itself was quoted by the Caribbean News Global that the country’s ability to maintain the country’s wealth with its restructuring. They have leaned on open market competitiveness as well as limiting institution control while adding a massive national fund to maintain the correct levels of production over time. As such, they do not overproduce and have losses from it, maintaining their steady and immense growth for half a decade.

3. Libya, Energizer Fennec Fox

Libya, just like Guyana, is a beneficiary of the Russian-Ukrainian war, the economic sanctions on Russian energy sources, and the rising prices of oil. However, according to the African Development Bank, also benefited from the resurgence of the hydrocarbon sector as an alternative to oil. Like Macau, their economy contracted by 12.1%, because of the market recession and the internal conflict in the country dating back to the regime change and the usurpation of the country’s despot in 2011.

However, even with the increased economic value of 7.5% as of 2024, making it the third largest economic growth in 2024, it all hangs in the balance with the current political turmoil in the country ever since the regime change in 2011. The International Monetary Fund has returned to report on the country’s economic growth this year, and it suggests that it is an opportune time for the country to move away from corruption and the lack of economic forward-thinking of the previous years.

However, the UN itself is warning that the canceled election in the country and the hasty attempt to have another one by the end of 2024 can lead to massive political turmoil. The country itself is split in half with two competing governments in two different cities, and if the situation does not resolve, it may lead to another economic shrinkage in the country just like two years ago.

4. Palau, Refuses to Sink

The island country in the Pacific is threatened by both the rising sea levels as well as similarly to Macau, their heavy reliance on tourism. The entire service industry is about 80% with tourism being its main economic engine according to Wikipedia. Palau also relies on economic aid from the US as it holds military bases as part of its Pacific base chain. Despite the past quarantines that swept through East Asia, their loosening of lockdown restrictions have made Palau’s economy increase by 18%, but around 9.9% when accounting for inflation, making it the fourth fastest growing economy in the world as of 2024 according to Island Times. This is extremely impressive for a country with less than 20,000 people.

As reported by the US State Department, despite the aid to the country through the tourism income losses during COVID, the economy is slowly recovering to its state in 2020 and the upcoming years with its upward trajectory. However, it is still not big as it used to be, meaning that it may have an economic growth spur next year as well.

The currency in Palau is also the US Dollar (USD), so any fluctuation in the currency, as well as any American policy pertinent to the country, will affect it too. Despite having no exports or patents registered, the country is projected to continue to grow thanks to its strategic location both in terms of tourism and global defense.

5. Senegal, Peace and Progress

The Western African francophone country has enjoyed a relatively peaceful albeit slow progression since its independence from France in the 1960s. According to Brittanica, this was thanks to monetary policies as well as the slow privatization of sectors to ensure proper growth over time, and tax breaks to private enterprise. This made an enticing economy for investments as African Business reports the country has 300,000 small and medium businesses with emerging opportunities in oil and gas. With the current high energy prices and its growing competitive economy, Senegal is the fifth fastest growing economy in the world.

Senegal easily shifted from a country of tourism and transport to a country of energy exports according to the World Bank. Moreover, Senegal used the economic crisis from COVID to improve its internal supply chain, lowering energy costs from the increased production, increasing labor market efficiency, and safeguarding the wealth of both individuals and businesses.

However, just like with Palau, global warming is harming the country despite its best efforts. The African Development Bank Group estimates that the country loses $2.8 billion US dollars due to global warming even with their carbon footprint being below average. Their increased reliance on the energy sector might only exasperate the negative effects of the already dry and mostly desert country despite its ocean access.

6. India, Emerging Superpower

India is a success story on the global stage with its rising economy. The Economic Times has forecasted that the Indian economy will surpass $4 trillion in the upcoming two years. This will make it the 5th largest economy in the world according to Investopedia, surpassing the United Kingdom. The good news doesn’t stop there for India’s economic future. CNBC reports that according to Goldman Sachs, the investment banking firm, India’s economy will be the 2nd largest in the world, only second to China thanks to its large but stable population, increased worker productivity as well as foreign investment, and local technological advancements. With a population of 1.4 billion people, it’s hard not to see economic and technological strides forward with such a huge talent pool.

Fiji, Honorable Mention – Not Just Water

Though Fiji is not in the top 5 fastest economies in the world in 2024, it is worth mentioning the island nation for its resilience and positive outlook toward the future. Just like the other Pacific Island nation, Palau, this growing economy is heavily reliant on tourism, but it also has some more exports. The country exports the famous Fiji water worldwide with OEC, projecting a steady increase of export to the US and other countries of 0.67% every year on average before COVID, with new data estimating it to balloon.

The Asian Development Bank forecasts a 6.3% economic growth that will slowly abate due to the county’s high national debt. However, the website Focus Economics forecasts that Fiji will have an average growth of 7.7% from now through 2026 thanks to the quick rebound the country made with its tourism industry. It mentions that travelers from the Anglophone countries as well as from East Asia for both business and recreation can lead to the country experience the same pre-COVID tourist levels, and even exceed given there wouldn’t be another strain of it sweeping the world.

Conclusion

A lot of factors can determine a country’s economy, some are more volatile than others. The reliance on other countries in the form of exports and tourism while dealing with internal security issues or legal woes can make or break an economy one year or the other. The stronger economies in the world have the benefit of diversification and internal consumption to boost their economy, check out what drives the top 10 economies in the world on iFOREX.