The 10 Fastest Growing Economies Of The Next 40 Years

The 10 Fastest Growing Economies Of The Next 40 Years

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#1 Nigeria
YoY growth rate: 8.5%
GDP in 2050: $9.5 trillion (#6 in the world)
In four decades, Nigeria's working age population should increase by 123%, and it has started to exploit its large natural resource endowments more sustainably. Its private sector has spawned companies that are expanding to other African regions, but improvements are need in healthcare to raise the low life expectancy.
Projections provided by Citi. GDP in 2050 was given by Citi or estimated using growth rate.

#2 India
YoY growth rate: 8.0%
GDP in 2050: $86 trillion (#1 in the world)
India will be the largest economy in the world by 2050, but it has to improve its overall infrastructure and extend education to lower castes as well as females in rural areas.
Projections provided by Citi. GDP in 2050 (PPP) was given by Citi or estimated using growth rate.

#3 Iraq
YoY growth rate: 7.7%
GDP in 2050: $2.2 trillion
Iraq's post-war reconstruction and recovery means it will have an estimated 11.7% annual growth during the first five years. Over the next four decades, its working age population should go up by 143.4% and it has abundant oil and gas resources to draw on to finance infrastructure investment.

#4 Bangladesh
YoY growth rate: 7.5%
GDP in 2050: $5.0 trillion
Bangladesh is starting out at the bottom with a GDP per capita that's just 4% of the US, but with recent political stability and a young population it could get impressive growth rates over the next decades.

#5 Vietnam
YoY growth rate: 7.5%
GDP in 2050: $5.0 trillion
Some of Vietnam's many challenges, which include "erratic at best and poor most of the time" exchange rate and macroeconometric policies, will be easy to overcome.

#6 Philippines
YoY growth rate: 7.3%
GDP in 2050: $5.9 trillion
The Philippines' way too low investment rate at 14.5% of GDP needs to rise, but the country will benefit from a growing population and large community of workers sending remittances back and gaining foreign experience.

#7 Mongolia

YoY growth rate: 6.9%
GDP in 2050: $150 billion
Mongolia's economy, based "overwhelmingly" on resource extraction, is set for 14.2% GDP growth in the next five years. Right now the "quite remarkable" saving and investment rates put Mongolia on the right path for potential growth.

#8 Indonesia

YoY growth rate: 6.8%
GDP in 2050: $14 trillion (#4 in the world)
A 17.9% increase by 2050 in an already-large working age population could set up Indonesia for China-like growth, if capital formation and infrastructure catch up. Natural resource extraction, a major source of growth so far, needs more investment.

#9 Sri Lanka

Image: transaid images via Flickr
YoY growth rate: 6.6%
GDP in 2050: $1.3 trillion
In the next decades, Citi expects improved governance and post-conflict growth in Sri Lanka after the end of the civil war with the Tamil Tigers. The investment rate has to rise to make up for a population that will all but stop growing.

#10 Egypt

YoY growth rate: 6.4%
GDP in 2050: $6.0 trillion (#10 in the world)
A 60.8% rise in Egypt's working age population by 2050 will be a "big plus" if job opportunities keep up. Citi is optimistic about economic reform after the revolution.