New oil fields plus public spending and rising consumption and investment is driving the economic expansion of several countries. At least two of them are expected to grow by more than 8% in 2018. The countries that recover after having gone through hell usually experience a rebound that leads them to grow at a shocking speed. There is a power, which seems unstoppable. A decade has passed since the financial crisis that shook the world unleashed. Why will these countries grow faster? After many hardships, the world economy began to rebound and, although the generation of wealth has been moderate.
It is the emerging markets and the developing economies that are leading the growth. Those export raw materials. Growth will gather momentum as an investment and private consumption consolidate. Particularly in commodity export, economies the World Bank said in its economic outlook report. When looking at the general outlook for growth for this year forecast by the World Bank, four African countries appear in the lead and one Asian. The list is led by Ghana, Ethiopia, Ivory Coast and Djibouti.
Why will these countries grow faster?
Each one for different reasons public spending plays an important role. In many cases, lead economist at the World Bank’s Global Development Perspective Group. The only non-African country on the list is India, a South Asian giant. That could become the third world economy, after China and the United States, in the next decade. Its population is increasing rapidly. The reforms implemented by the government of Narendra Modi should, as projected by economists, bear fruit in the medium term.
However, doubts persist about the fall in the investment rate in that country. Experts estimate that if the investment remains at 30%. It is unlikely that the growth of the Gross Domestic Product (GDP) will increase to more than 8% annually. A sustained growth of between 7% and 8% would be the dream of many countries. In Latin America, for example, estimates point to an average growth of 2% this year. In the case of the rich countries that started their development processes several decades ago, growth expectations are moving in other horizons. They are currently considered modest.
It is enough to look at the case of the United States, which grew 1.5% in 2016, 2.3% in 2017 and which is expected to grow 2.5% this year. You may be interested: 6 indicators in which the United States is at the level of the underdeveloped countries. India also faces other challenges, such as reducing costs and bureaucratic obstacles to doing business, as well as adding more children to the school system. Something has a direct impact on the quality of the future workforce. Undoubtedly, the demographic dividend of the country plays in their favor.
Rising from the ground
Ghana, considered one of the most stable countries in West Africa, is expected to have the highest growth in the world in 2018. Until recently, it was considered a model of economic growth in its continent, whose wealth came historically from gold and cocoa, and more recently from oil and gas. But as of 2013, its economy came downhill and had to face a crisis that led to high levels of public deficit and inflation and a weakening of its currency. However, in the last year, the situation has changed.