These nine countries are getting richer and richer
Amy Lonton-Rawsthorne
05 September 2018
Greater prosperity coming soon to these countries
Economies around the world have had to be savvy in the last decade, recovering from global crisis, trade disputes and changing competition. While some countries have floundered, others continue to have unprecedented success. Using FocusEconomics’ 2022 forecast of GDP per capita for 126 countries, we explore the countries due to be significantly richer in four years time.
Slovenia
Native home of US First Lady Melania Trump, Slovenia was once part of the socialist Federal People's Republic of Yugoslavia but has transitioned well from a state economy to the free market. Despite being severely affected by the 2012 European financial crisis, Slovenia has maintained one of the highest GDPs per capita in Central Europe.
Slovenia
Slovenia has enjoyed excellent growth rates of 5% in recent years. This has been attributed to its government’s investment in first-rate infrastructure, educated work force and strategic geographic position between the Balkans and Western Europe.
Slovenia
Strong export industries, such as IT, pharmaceuticals, car manufacturing and electronics, have helped unemployment fall rapidly this year. All of this is great news for the country’s GDP per capita. According to FocusEconomics, Slovenia’s ranking will improve from 32nd richest country to 31st by 2022.
Cyprus
Cyprus might seem like an unlikely candidate for strong economic forecasts. The island faced near financial collapse in 2013, with the EU and IMF forced to offer a $10 billion (£7.8bn) lifeline.
Cyprus
However, Cyprus impressed its critics by exiting the bailout programme early due to its imposition of tough austerity, cuts to wages and government reforms. In the last five years, Cyprus has re-energised and diversified its economy, expanding its tourism, shipping, real estate and light manufacturing sectors and becoming a hub for financial investors.
Cyprus
Russians and Eastern Europeans now invest heavily in Cyprian property, berthing super-yachts in front of their plush villas on the island’s marinas. It is perhaps, then, no surprise that Cyprus is set to move from 31st to 30th richest country by 2022.
Malta
Now to another small European island whose credit rating plummeted in 2012, but who weathered the Eurozone financial crisis better than most. Malta’s GDP per capita is set to rise in the next four years, bumping it up two places to 26th richest country by 2022.
Malta
Its strategic position between Europe and Africa makes Malta an important trading post, with a vast number of the world’s container and freight ships passing its shores. However, it has taken active government investment in free childcare and work programmes to reduce unemployment and increase GDP growth.
Malta
While Malta’s tourism industry remains the nation’s main source of income, the island’s financial services industry has blossomed in recent years, benefitting from attractive tax schemes for foreign investment. However, EU attempts to crack down on tax avoidance might cause concerns for the sector in coming years.
Italy
You might be surprised to see Italy predicted greater GDP per capita by 2022, moving the country one place up to 24th richest, according to FocusEconomics’ ranking. GDP increased by only 1.5% last year with similar sluggish forecasts for 2018.
Italy
With the highest youth unemployment rate among OECD countries, it is a triumph that Italy’s economy is making progress nonetheless. Unemployment has been falling and GDP has been slowly but steadily rising for three years.
Italy
Italy’s reputation for excellence in the fields of fashion, car manufacturing and food has been rejuvenated, boosting worldwide exports of “Made In Italy” products. Another success story is Italy’s tourism industry, which continues to boom both in the industrialised north and more agricultural south, amounting to 13% of the country’s GDP in 2017.
New Zealand
New Zealand has been in the news recently for its new law banning foreigners from buying homes. Although the move might increase the social and economic security of its citizens, the policy could have a detrimental affect on New Zealand’s GDP as real estate services are one of the biggest contributors.
New Zealand
Government investment in housing and infrastructure is having a positive impact on the economy, helping GDP growth accelerate to 3.1% this year. Indeed by 2022 the New Zealand is predicted to have substantially increased its GDP, moving up one place to become the 21st richest country.
New Zealand
Driving this success is New Zealand’s strong trade deals and the booming mainstays of the economy, one of which is tourism. From glaciers and ski resorts to turquoise lakes and thermal springs, there are many reasons tourists flock to New Zealand, contributing significantly to overall GDP.
Hong Kong
It has already been a very good year for Hong Kong’s economy. The territory has exceeded forecasts, with exports rising 5.6% and unemployment falling to only 3.1% in the second financial quarter. Hong Kong’s success is set to continue, with predictions that it will have the 17th best GDP per capita in the world within the next four years.
Hong Kong
Once known for manufacturing, Hong Kong’s economy has soared since becoming a finance and trading centre. Services now make up 92.7% of GDP. Due to its position next to mainland China, Hong Kong is a conduit for Chinese exports, making its deep-water port one of the busiest in the world.
Hong Kong
China’s trade dispute with the US could therefore be a cause for concern for Hong Kong’s export sector. This, alongside rising interest rates, could threaten its otherwise positive financial trajectory.
Qatar
Last year Qatar’s economy was hit with boycotts and trade restrictions imposed by Saudi Arabia, the UAE, Bahrain, and Egypt, who accused the government of financing terrorism. Yet Qatar managed to rapidly establish new trade routes and maintain its imports and exports, quickly regaining its status as one of the region’s fastest-growing economies.
Qatar
The world’s top exporter of natural gas relies heavily on its huge gas and oil reserves to drive up its GDP per capita. This is set to increase over the next four years, making Qatar the 7th richest country on the list by 2022. The country is unlikely to run out of its reserves anytime soon: it owns natural gas reserves of more than 25 trillion cubic metres and its oil reserves exceed 25 billion barrels.
Qatar
With low oil and gas prices in recent years, Qatar has diversified its economy, building its manufacturing, financial services and construction sectors, the latter being especially vital to its preparations for the 2022 soccer World Cup. Non-oil GDP now accounts for just over half the country’s total.
Sweden
Sweden’s economy has already expanded twice as fast as than forecast this year. As such, it is due to rise three places up the ranks and become the 6th richest country by 2022.
Sweden
GDP has grown considerably over the past three years, partly due to investment in the construction sector. However, the country’s economic success relies most heavily on exports, which account for more than 44% of GDP. Sweden has remained competitive in its exports of wood, engines, motor vehicles and telecommunications equipment.
Sweden
Even the economic success of its Scandinavian rival, Norway, has contributed positively to Sweden’s economy, with exports to Norway continually rising. Economic success has allowed the government to continue to provide Sweden’s famously advanced welfare system and high standard of living.
Norway
Only one place behind Luxembourg, Norway is predicted to have the second highest GDP per capita by 2022. Currently in 3rd place, Norwegians enjoy one of the highest standards of living and a thriving economy, in large part because of their vast offshore oil and gas supplies.
Norway
Other nations might have splurged their excess wealth but Norway instead deposits the surplus from its natural resources into what is now the world's largest sovereign wealth fund, valued at $1 trillion (£780bn) at the end of 2017.
Norway
Although the fund would sustain Norway long after the eventual decline in oil and gas production, Norway continues to take wider economic growth seriously. As well as doubling its gas production since 2000, it has invested heavily in other industries such as forestry and seafood, becoming the world’s second largest seafood exporter behind China.
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature