India is expected to record the fastest economic growth among the countries covered by FocusEconomics over the next five years. While the country was hit hard by the Covid pandemic and an ensuing harsh lockdown last spring, infection rates have fallen sharply in recent months, the domestic vaccination campaign is now underway, and recent economic signs—such as PMI readings and trade data—are encouraging. Moreover, recently announced structural reforms, such as the aim of privatizing state-owned banks, allowing greater foreign participation in the insurance sector and market-oriented agricultural reforms, pose upside risks.
That said, there are doubts over the political commitment to see the reforms through, while poor infrastructure will continue to impede growth. Front-loaded and higher government spending, lagged effects of easier financial conditions, faster global trade and ongoing vaccinations should all combine to lead to a sharp pickup in cyclical growth. We reiterate our above consensus real GDP growth forecast of Bangladesh has weathered the Covid crisis comparatively well: While growth momentum was hit last year by lower garment exports, robust remittance inflows and recovering industrial production have aided the recovery in recent months.
Looking forward, rapid export growth and stronger domestic demand should drive the economy. Moreover, the country will continue to be blessed with favorable demographics: Past success at reducing fertility rates has seen the dependency ratio—the ratio of the working-age population to the population not in the labor force—plummet in recent decades, aiding productivity and boosting public coffers.
That said, slow progress in vaccination poses a downside risk. Higher investment spending stemming from a raft of ongoing infrastructure development projects and a pick-up in domestic activity will also support growth.
The ongoing domestic recovery will be flattered further by positive base effects in the second half of the fiscal year, compared with the period of coronavirus-induced lockdown in the same period in A downside risk to our forecast comes from a potential rise in the coronavirus caseload in Bangladesh, which could prompt the government to deploy blunt containment measures once again.
While the Covid crisis has certainly truncated progress over the last twelve months amid lower FDI and business closures, our panelists see real GDP growth averaging 6. There is no agreed-upon ideal growth rate for a country or best way to achieve it. Different economists and sources have different ideas as to what drives economic growth. The following are a few explanations. The following are several measured that the United States has employed to promote economic growth:.
Another way to look at how to achieve economic growth is by increasing the quality and quantity of the four factors of production. The factors of production are the resources used in creating goods and services in an economy. China is now the second biggest economy in the world, and is competing hard with the United States to take the top spot in the world, with many countries in Asia already dependent on China for their own economic growth.
Even as economies continue to grow, one cannot fail to mention the Covid pandemic and the devastating impact it has had on the world. The pandemic has seen over million people infected across the world and with at least 2 million deaths, though these figures are likely to be extremely understated and the true impact will only be ascertained later on.
Most countries imposed strict lockdowns to try to reduce the spread of the virus and the devastation it was causing, resulting in billions of people facing lockdowns globally, and economies coming virtually to a halt. Even now, many parts of the world are engulfed in an even worse second worse, and at least some levels of restrictions remain in most countries. Due to the economic impact of the pandemic, most countries across the world are currently undergoing a recession or a depression, with the GDP of most countries contracting significantly.
The GDP of many countries has contracted, and it is expected that it will take a few years for things to return to pre-pandemic levels.
The good news is, that multiple vaccines have been developed and started to be administered to the general population across the world, which has led to expectations that even though the next few months are expected to be really bad, we can at least see the light at the end of the tunnel. The fastest growing developing countries in are from various locations geographically, with Africa surprisingly having its fair share of entries. We have used both the IMF's identification of developing countries and its latest report on the real GDP growth of the countries to come up with our rankings.
Rather than simply use one year's rankings, especially in a year as volatile as this one, we have used the last decade i.
So without further ado, let's take a look at the countries most eager to break through the developing countries tag and become a developed country, starting with number Ghana has quite a diverse economy, which includes automotive construction, ship construction, digital technology as well as natural resources and their export.
Vietnam is one of the few countries which handled the pandemic well and hence, there hasn't been as significant an impact on its economy which continues to grow unabated. While its economy grew by 3. The economy of Ivory Coast is quite stable while also focusing on fast growth, and is quite dependent on its agriculture sector.
Nowadays, Myanmar is mostly in the news for its ethnic cleansing of Muslims, which is a fact that can't be denied no matter how much the government tries. It is one of the four remaining socialistic states, and so it is unsurprising that its economy has socialistic policies and has also undertaken economic policies to encourage privatization.
Tajikistan is located in Central Asia and the country's economy depends on services and its agriculture sector as well. Bangladesh only gained independence from Pakistan in but it seems to have left the latter far behind in terms of economic growth, and has become the 35th largest economy in the world. Its financial sector has grown leaps and bounds as well, and is the second biggest in the Indian subcontinent.
This file opens in a new window Download the full report. Governments are stepping up their infrastructure spend, following the deficiencies exposed by COVID Investors can benefit from the expected growth….
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