GDP growth by country 2024: Key trends and economic insights

In today’s globally connected business environment, the economies of different countries are often correlated. Many different factors drive the biggest economic growth trends, including advancements in technology, environmental conditions, and geopolitical issues.¹

Tracking GDP growth by country can help you get an overview of a country’s financial health and make informed investment decisions. It can also help you understand how different policies and other issues affect growth and development around the world.²

This article will cover countries with high economic growth and other related trends, as well as the associated challenges and implications.

When evaluating global economies, several metrics help provide a more nuanced understanding of gross domestic product (GDP) performance. These include GDP at current prices, GDP per capita, and the impact of growth in emerging and developing economies. Here's how these factors influence insights into global growth trends:

This metric reflects the total value of all goods and services produced within a country during a specific year, calculated using current prices rather than adjusting for inflation.³ It offers a snapshot of an economy's immediate financial health and helps track countries with higher growth rates compared to the previous year. For businesses and investors, current prices GDP is a valuable tool for identifying opportunities in rapidly expanding markets.³

For advanced economies like the United Kingdom, GDP per capita is a critical measure of individual prosperity. By dividing the total gross domestic product by a country's population, this figure highlights disparities in wealth distribution and standard of living.³ Comparing advanced economies to emerging and developing nations reveals how economic strategies differ, with high-income countries often focusing on innovation and services.

In emerging and developing economies, rapid growth rates are often fueled by industries such as manufacturing, technology, and resource exports. While metrics like purchasing power parity can help compare economies' size and potential, analyzing real-world services produced and exports reveals the underlying drivers of success. These markets present significant opportunities for investment, offering higher returns compared to more established economies.

By understanding these key metrics, businesses and investors can make better decisions and tailor strategies to align with global economic shifts.

The following are the top three countries with the highest economic growth.

With a GDP growth rate of over 33%, Guyana is leading the world in economic growth.⁴ This is largely the result of exports from an oilfield being developed by a consortium led by Exxon Mobil.⁵

Macao SAR is in second place with a GDP growth rate of almost 14% in 2024.⁴ Its economy is driven largely by tourism, an industry that accounts for 70% of its GDP.⁵

With a GDP growth rate of 12.4%, Palau’s economy is also driven by tourism.⁴ The small island country owes 40% of its GDP to the tourism industry.⁵

According to the International Monetary Fund, the GDP growth of developed countries will be more muted in 2024: The U.S. economy is expected to finish 2024 with a GDP growth rate of 2.8%–spurred on by strong consumer spending.⁶ European countries are experiencing even slower growth, with the eurozone’s GDP growth expected to be 0.4%, and the U.K.’s 1.1%.⁷

These modest growth rates have been influenced by inflation, interest rates, and fiscal policies. In the U.S., inflation has fallen from its peak. As a result, the Federal Reserve has cut its interest rates for the second time this year.⁸ In the eurozone, inflation fell to 1.7% in September 2024. The European Central Bank has cut interest rates three times this year, and it's expected to do so again in the near future.⁷

In the next five years, several emerging markets are expected to continue to grow at more than twice the global average. The IMF predicts that Bangladesh’s GDP will grow at a 6.8% rate, India's at 6.5%, and Vietnam's at 6.4%.⁹

Although each market has a specific collection of industries driving its growth, the key industries playing a role include:¹⁰

• Information and communication technology
• Advanced manufacturing
• Oil and gas
• Textile and apparel
• Specialty chemicals 

The biggest challenges affecting GDP growth around the world in 2024 include global inflation, geopolitical tensions, supply chain disruptions, and environmental concerns.

Inflation has been a significant obstacle to GDP growth throughout the world. However, global inflation rates have started to decline, which is a promising indicator of future growth. By 2026, global inflation is expected to fall to 3.7%, with developed nations falling closer to 2% and emerging economies landing around 4.9%.¹¹

Regional conflicts in Ukraine, the South China Sea, and the Red Sea have interrupted supply chains and fueled further uncertainty. These disruptions have caused shortages of critical components and slowed manufacturing progress around the world.¹²

Overall, many countries are making significant progress toward transitioning to clean energy. On the other hand, geopolitical conflicts have caused setbacks in some countries due to increased energy insecurity. The digitization of energy infrastructure also presents a significant risk, as it opens up the potential for malicious actors to disrupt the energy supply.¹³

In North America, the U.S. economy is being driven by strong consumer spending and a resilient labor market. Technological innovation is at the heart of much of the nation's GDP growth, but persistent inflation is still a concern.¹⁴

Although the eurozone’s GDP is expected to grow, it’s likely to be slow due to high interest rates and nearby geopolitical conflicts. Recent growth is largely the result of easing inflation and consumer spending.¹⁵

China and India are leading drivers of growth in the Asia-Pacific area. Strong consumer demand, manufacturing exports, and technological innovations are underpinning the economic expansion. It should be noted that conflicts and supply chain disruptions could be limiting factors.¹⁶

Growth in many Latin American countries has stalled despite their success in stabilizing their economies. Commodity exports and domestic consumption are leading to increased growth, although high inflation and political instability are undermining some of the progress.¹⁷

Overall, Sub-Saharan Africa’s growth has been slow due to political instability and inadequate infrastructure. On the positive side, natural resource exports and infrastructure development are contributing to growth and progress.¹⁸

GDP growth can significantly impact investment strategies as it illustrates opportunities and risks. Countries with high GDP growth can help you determine where to allocate your investments, as it can point you toward areas where you can capitalize on expansion.

Following GDP trends across regions can also help you diversify your portfolio to mitigate the risks associated with economic downturns in a specific region. A slowing GDP growth rate may indicate that it’s time to follow a more conservative strategy to hedge against potential losses.¹⁹

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