There has been much ado made about the growth of China's economy lately, and projections forecast that within the next 50 years it will overtake the United States as having the highest GDP in the world. With both China and India at the forefront, the next 50 years is likely to see a major shift globally, as more and more economic power is diverted away from North America and Western Europe and into Asia. While many accept this shift is already occurring, the countries with the fastest growing GDP are ones you will likely not expect. While the United States and European Union are often seen as the premier economic powerhouses of the world, the truth is that GDP growth in these areas has become rather stagnant in recent years.
The Fastest Growing Economies
According to the International Monetary Fund, Libya has the fastest growing GDP in the world. The major reason behind the north African country's economic growth is the reestablishment of the oil industry, after it was ravaged for years by Civil War that began in 2011. As much of the Libyan economy relies on crude oil production, the reestablishment of the industry goes a long way in encouraging the growth of the country's GDP. Experts say. however, that the country has not yet returned to pre-war levels.
Following Libya is Rwanda. Historically, Rwanda has gone through some hardship, including a horrific genocide in 1994. However, life today for the country's 12 million people, is relatively peaceful. A growth in the country's stability has led to the growth of many industries, including the service sector. In a country that has long-time relied solely on rural industries, this shift is making a large difference in GDP levels. Tourism is also increasing in Rwanda, thanks to the country's beautiful natural resources.
Why Are So Many Economies in Asia and Saharan Africa Flourishing?
One factor that may be linked to the growth of sub Saharan African and Asian economies has been decreased crude oil prices. By not having to spend as much on importing crude oil, nations lacking their own oil reserves are able to have more economic freedom. Similarly, in Asia foreign investments and exports of agricultural products and technology continue to drive economies upward.