12 fastest growing economies for 2013

12 Fastest Growing Economies for 2013

With the global economy over the worst of the financial crises and the eurozone expected to return to growth this year, governments and policymakers are now shifting their focus away from austerity and promoting policies that

can boost job creation and growth.

Financial markets are no longer in a state of emergency and further evidence of market stabilisation can be found in the dramatic dip in borrowing costs and the return to profitability for most businesses.

So, without denying the risks to economic recovery, we take a look at 12 countries that boast the highest growth potential in 2013.

Related Story: The Fastest Growing Economies in 2013

Source: Economy WatchPhoto credit: National Geographic /Wikisource/FLICKR Mosi Lager- dwrawlinson


● 12. Zambia


● 12. Zambia

Despite the disadvantage of being landlocked, the southern Africa nation is one of the fastest-growing and most urbanised economies on the continent, growing at an enviable rate of 6.8 percent last year.

● As part of its $11.9 billion budget, the government plans to create 1 million jobs over the next five years, mainly in agriculture, tourism and manufacturing. Economic growth of 8 percent is forecasted this year, and expected to extend into 2014, as Africa’s biggest copper producer benefits from expanding mining and agricultural production.

● The country is targeting more than $5 billion in foreign direct investment pledges this year and long-term growth prospects stand at roughly 7 percent growth per annum, putting it in the same league as Nigeria and Angola.

● 2013 GDP Forecast: $23.1 billion

● GDP Growth: 8.1%

● Related News: Zambia to Spend $5.6 Billion on Building Roads

● Related : Zambia Fast Facts

● Related: Zambia Economy, Economic Structure, and Trade Overview


11. China


● 11. China

● China has enjoyed a remarkable decade of double-digit growth but saw its economy slow to a low of 7.5 percent growth last year as a result of weak export markets and cooling down measures in Beijing’s property market.

● However, proactive fiscal policy and planned market reforms – not to mention abundance in state monies – could see a rebound to 8.2 percent in 2013, said the Chinese Academy of Social Science, the country’s top academic and policy research institute.

● 2013 GDP Forecast: $9.038 trillion


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● Related Story: 12 Predictions for the Chinese Economy: Michael Pettis


10. Mozambique


● 10. Mozambique

● Torn apart by 15 years of civil war, Mozambique was one of the poorest countries in 1975 but has emerged as one of the fastest-growing economies today, evidenced by its recent construction and investment boom.

● The country is poised to become the world's biggest coal exporter within the next decade, while the recent discovery of two massive gas fields in its waters has turned the region into an energy hotspot, promising a $400 billion bonanza. Last year, the national currency was the best performing in the world against the dollar.

● Mozambique plans to take advantage of its massive gas reserves to develop domestic industries as well as export liquefied natural gas, boosting government revenue by $6 – $8 billion a year. The country also plans to create a sovereign wealth fund or a national development bank to channel future gas revenues into industrial and social development.




9. Kyrgyz Republic


● 9. Kyrgyz Republic

● A predominantly Muslim Central Asian nation of 5.5 million which hosts both U.S. and Russian military air bases, Kyrgyz Republic, better known as Kyrgyzstan, is one of the poorest former Soviet republics, whose per capita GDP is worth less than a tenth of that in neighbouring Kazakhstan.

● Kyrgyzstan’s economic growth slowed to just 1 percent in 2012, crippled by an output collapse at its flagship gold mine which alone accounted for 12 percent of the country’s GDP and more than half of all exports in 2011.

● However, a $7 billion economic revival plan, as well as a new investment plan that includes energy, transport and communication projects and agricultural development work, will attempt to spring the country back to growth this year.




8. The Gambia


● 8. The Gambia

● The smallest country in continental Africa, Gambia has a population of 1.7 million that is traditionally dependent on agriculture and exports.

● The Gambian economy has remained remarkably resilient since the onset of the global financial crisis, with economic growth attributed to the good performance of the agriculture sector.




7. Democratic Republic of Timor Leste


● 7. Democratic Republic of Timor Leste

After emerging from genocide and a 24-year conflict, Timor-Leste has transformed to one of the fastest-growing economies in the world with an average annual growth rate of over 10 percent.

● Development economist Jeffrey D. Sachs as predicted that between “between 2010 and 2020 Timor-Leste will grow faster than China,” and plans are already in place to shift the country from a low-income to upper-middle income country by 2030.

● "Our target is that by 2030, GDP will be over 10,000 U.S. dollars per capita from the 600 U.S. dollars now. Although ambitious, I believe plans can be implemented," Timorese Minister of Economy and Development Joao Goncalves said.

● The oil-rich country generates 85 percent of its revenue from oil and gas. It is exploring potentials in its vast mineral resources such as marble and gold, fishing industry, commodities such as coffee, cocoa, timber and bamboo to increase and diversify its revenue. Timor-Leste has emerged as an exciting frontier economy, and its application to join the Association of Southeast Asian Nations will help it more closely integrate with the world's powerhouse economies.




6. Paraguay


● 6. Paraguay

● In early December, the International Monetary Fund raised its forecast for Paraguay's 2013 economic growth to 11 percent, citing a record soybean harvest forecast for the country. Paraguay is the world's No. 4 soy exporter, though it trails far behind neighbouring farm giants Brazil and Argentina.

● Related: Paraguay Economy, Paraguay Export, Import and Trade, Paraguay Economic Statistics and Indicators




5. Bhutan


● 5. Bhutan

● It is one of the world’s smallest and least developed economies but Bhutan should have a lot to be happy about this year. After growing at 8.1% last year, the Kingdom is expected to expand at 13.5% in 2013, driven by a boost in hydropower constructions.

● The electricity sector’s share of the Bhutan economy has reached almost 20 percent, outstripping agriculture as the single-largest contributor to GDP. In fact, Bhutan – which is just 1% of India’s size and has fewer than 800,000 people compared with its neighbour’s 1.2 billion – now supplies 1% of India’s electricity needs.



● Related Story: Development, But At What Price? Lessons from the Happiest Place in Asia

● Related: Hydropower Development: The Economic Impact of Hydropower


4. Iraq


● 4. Iraq

● Buoyed by an increase in oil production and declining violence, Iraq's economy is showing signs of revival and should grow by 9 percent this year.

● Iraq has the world’s fourth largest oil reserves and last year produced more than 3 million barrels of oil per day for the first time in three decades as its industry recovers from years of war and economic sanctions. The government, which generates 95 percent of its revenues from the sale of oil, expects to expand production capacity to 10 million barrels a day in six years, which would put it at the top of world oil producers.




3. Mongolia


● 3. Mongolia

● Sandwiched between China and Russia, and equal in size to Western Europe, Mongolia is one of the most sparsely populated countries in the world. But, Mongolia is also one of the richest countries in terms of mineral resources, most of it untapped.

● The International Monetary Fund predicts Mongolia could grow at double-digit rates for at least the next 10 years, lifting per capita income – now approximately $2,500 – fourfold within a decade and making it one of the fastest-growing economies in the world.




2. Libya


● 2. Libya

● Libya is likely to extend its economic rebound through 2013 as the country rebuilds from civil war and oil production recovers to levels last seen during Muammar Gaddafi's rule.

● Prior to 2011, hydrocarbon production accounted for more than 70 percent of GDP but as rebels advanced on much of Tripoli, production slumped from 1.77 million to 22,000 barrels of crude per day. After a staggering 116.6 percent economic expansion in 2012, Libya’s growth is expected to calm in 2013 as the economy, especially the energy sector, continues to make progress in restoring its production capacity.




1. South Sudan


● 1. South Sudan

● As South Sudan's leaders shift from waging war to running a state, the country's oil is proving one of the trickiest challenges: It has 7 billion barrels in proven reserves, small compared with African oil giants such as Nigeria but enough, if it was all extracted, to meet the oil needs of the United States for a year. Yet, despite receiving billions in international aid and a peace agreement with Sudan, the government has achieved little in socioeconomic development.

● "Major challenges will need to be overcome if this potential is to be realised. These challenge include institutional weaknesses, limited physical infrastructure and a weak human capital base," the IMF said in October.

● After a devastating 55 percent decline in 2012 – the result of an oil shutdown – the IMF expects South Sudan’s GDP to grow by 69.6 percent this year. However, such impressive rebounds in growth are not unusual in countries emerging from conflict when the economy is boosted by rebuilding projects and pent-up private demand.



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12 fastest growing economies for 2013