Countries that will be richer and poorer in 2018
lovemoney staff
28 December 2017
The economies poised to contract and grow next year
Next year looks rosy for some economies, and decidedly bleak for others. Using real GDP projections from the IMF, we reveal the world's 20 fastest and 20 slowest-growing economies in 2018.
Vietnam: up 6.3%
Starting with the fastest-growing economies, first up is Vietnam. With foreign investment on the up, the country's economy is projected to expand by 6.3% next year.
Burkina Faso: up 6.5%
Burkina Faso's economy is forecast to grow by 6.5% next year, as increased public investment and a growing mining industry revitalise the impoverished African nation's finances.
China: up 6.5%
China may not be experiencing the skyrocketing growth it enjoyed in the 2000s, but the economy is still expected to expand by 6.5% next year, with consumer spending ever-strong.
Philippines: up 6.7%
Increasing domestic demand is turbo-charging the Filipino economy, which is projected to grow by a very respectable 6.7% in 2018.
Rwanda: up 6.8%
The Rwandan economy is expected to continue growing steadily in 2018, stimulated by a glut of foreign investment and improved cash crop yields.
Cambodia: up 6.8%
Rising exports, increasing tourism and a mushrooming construction industry are pushing strong economic growth in Cambodia, which is forecast to hit 6.8% next year.
Tanzania: up 6.9%
The Tanzanian economy is set to grow by 6.9% in 2018 according to the IMF, mainly as a result of a surge of major infrastructure projects in the country.
Laos: up 6.9%
Laos' economy is in great shape right now. Major infrastructure investment and increased exports are working wonders on the southeast Asian country's finances, with growth expected to top 6.9% next year.
Senegal: up 7%
With its agricultural and oil industries expanding, the West African nation of Senegal is moving from a low to middle income country, and growth is projected to hit 7% in 2018.
Djibouti: up 7%
Another African country on the up, Djibouti is on target to enjoy 7% economic growth next year, buoyed on by foreign investment and a fast-developing services sector.
Bangladesh: up 7%
Increasing consumer demand and a number of large infrastructure projects are fuelling stellar growth in Bangladesh, with the economy expected to expand by 7% in 2018.
Macau: up 7%
The gambling sector, Macau's chief industry, is expected to recover significantly in 2018 and, as a result, the economy is forecast to grow by a healthy 7% next year.
Ivory Coast: up 7.3%
Ivory Coast's economy has been on fine form in recent years with the nation's cocoa, cashew nut and oil industries flourishing. The momentum is likely to continue in 2018 with projected growth of 7.3%.
India: up 7.4%
The IMF expects the Indian economy to expand by an impressive 7.4% next year, thanks to a combination of increased public investment and rising consumer spending.
Myanmar: up 7.6%
Myanmar's economy is projected to grow 7.6% in 2018, but this could all be undone if Western countries impose sanctions for the country's brutal repression of minority Rohingya Muslims.
Yemen: up 8.5%
Yemen is in the midst of civil war and a mounting humanitarian crisis, and while the economy is expected to expand in 2018, real GDP will still be significantly lower than 2013 and 2014.
Ethiopia: up 8.5%
The Ethiopian government is in the process of liberalising the country's economy and investing in infrastructure, and is set to join the World Trade Organization (WHO) in 2018, with the economy expected to be boosted as a result.
Ghana: up 8.9%
Ghana is booming right now with significant growth in the services sector, not to mention the mining and oil industries, and real GDP growth of 8.9% is projected for next year.
Bhutan: up 11.2%
A series of major hydropower projects will transform the economy of Bhutan over the next few years, with GDP growth in the compact Himalayan kingdom poised to hit 11.2% in 2018.
Libya: up 31.2%
The oil industry in the conflict-ravaged North African country is expected to bounce back in 2018, upping the country's real GDP by 31.2%. Still, Libya has a long way to go to get back on its feet financially.
Azerbaijan: up 1.3%
Now for the 20 slowest-growing economies. Azerbaijan is heavily dependent on oil. Given the stubbornly low price of the commodity, growth is expected to be very modest in 2018 at 1.3%.
Suriname: up 1.2%
Gold and alumina mining, as well as oil production, are the mainstays of Suriname's economy, all of which experienced price drops in 2017, hence the low growth forecast of 1.2% for next year.
Italy: up 1.1%
The stagnating Italian economy is expected to grow by 1.1% in 2018, slightly down on this year but an improvement on 2016's figures.
South Africa: up 1.1%
Real GDP growth, which slowed this year in South Africa, is poised to pick up in 2018, but the speed-up is only expected to be modest at 1.1%.
Saudi Arabia: up 1.1%
The sluggish Saudi economy, which is overly reliant on oil, has taken a battering in recent years as the price of the black stuff plummeted. However, as the economy diversifies, growth is expected to return in 2018.
Samoa: up 0.9%
Manufacturing output is expected to decrease next year in Samoa. As a result, the Pacific nation's economy will only grow by a paltry 0.9%.
Zimbabwe: up 0.8%
Major political change in Zimbabwe may shake up the economy over the longer term, but for 2018 the outlook is far from bright, with growth of just 0.8%.
Algeria: up 0.8%
Persistently low oil and gas prices haven't done the Algerian economy any favours. While prices are expected to recover slightly next year, growth of only 0.8% is projected for the country.
Japan: up 0.7%
Japan has been stuck in the economic doldrums for years, and the country's financial fortunes don't look like changing for a while yet if next year's 0.7% real GDP growth rate is anything to go by.
Belarus: up 0.7%
Planned economic reforms have not come to pass in Belarus, leading to a downgrade in the Eastern European country's real GDP growth forecast for 2018.
Ecuador: up 0.6%
Austerity measures have been imposed in Ecuador to stimulate economic growth but the economy isn't expected to expand next year by more than 0.6%.
Brunei: up 0.6%
Oil-dependent Brunei has experienced several negative and low growth years in a row due to the low price of the commodity, and next year will be no different, with growth at a mediocre 0.6%.
Barbados: up 0.5%
Despite an increase in tourist numbers, Barbados will only experience modest growth next year according to the IMF, at just 0.5%.
Burundi: up 0.1%
Next year's projected growth figure of 0.1% in Burundi may seem low, but it's a very slight improvement on 2017's zero growth rate.
Swaziland: -0.9%
Chronic drought conditions and budgetary constraints have contributed to a slowing economy in Swaziland, which is expected to experience negative growth in 2018.
Puerto Rico: -2.5%
Puerto Rico's finances were already in a sorry state when Hurricane Maria hit in September, further damaging the economy, which is expected to contract by 2.5% next year.
South Sudan: -3.4%
Recent reports suggest South Sudan requires $1.7 billion (£1.3bn) in humanitarian aid to help it deal with the ravages of war, famine and a failing economy.
Nauru: -4%
The tiny Pacific nation is almost 100% reliant on phosphate. With reserves running low, the outlook for Nauru's economy is pretty dire.
Venezuela: -6%
As if things couldn't get any worse, the economic crisis in Venezuela is expected to deepen next year as hyperinflation kicks in, with the economy contracting by an estimated 6%.
Equatorial Guinea: -7.8%
Equatorial Guinea is expected to have the world's fastest-shrinking economy in 2018. The country has been stuck in recession since 2013. The culprit? The ongoing low price of oil.
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