The global economy will be in a weaker position in 2022 than previously anticipated. Rising energy prices and supply disruptions have resulted in higher and more widespread inflation than forecast. The ongoing retrenchment of China’s real estate sector, as well as the slower-than-expected recovery of private consumption, limit growth prospects. Global growth is forecast to slow from 5.9 percent in 2021 to 4.4 percent in 2022. With ongoing supply chain disruptions and high energy prices continuing in 2022, elevated inflation is expected to last longer than predicted in the October WEO.
As advanced economies raise policy rates, risks to financial stability and the capital flows, currencies, and fiscal positions of emerging market and developing economies may emerge. Other global risks may emerge as geopolitical tensions remain high and the likelihood of major natural disasters remains high.
Here is a list of fastest growing economy in 2022:
Libya
Growth in real GDP (Annual % change) – 123.2%
According to Trading Economics global macro models and analysts’ forecasts, Libya’s GDP Annual Growth Rate is expected to reach -20.00 percent by the end of 2020. According to our econometric models, the Libya GDP Annual Growth Rate is expected to trend around 15.00 percent in 2021 and 30.00 percent in 2022.
Guyana
Growth in real GDP (Annual % change) – 20.4%
The World Bank has revised the country’s growth projection by some 49.7 per cent. In its June 2021 report, the World Bank projected that Guyana’s economic growth would be about 26 per cent in 2022. This new projection was stated in the Bank’s “Global Economic Prospects” report released on Tuesday.
Macao
Growth in real GDP (Annual % change) – 21.1%
Macao’s real GDP will grow by 21.1 percent in 2022, up from 17.7 percent in 2021. Fast growth rates conceal deep economic fragility; Covid-19 has decimated inbound tourism and gambling activity, preventing the economy from returning to pre-crisis levels until 2023. The territory’s effective handling of the healthcare crisis will keep social unrest at bay during that time, but a tightening grip on the local political scene risks inflaming tensions with the West.
Maldives
Growth in real GDP (Annual % change) – 18.9%
According to the IMF, the Maldives will be among the top five fastest-growing economies in 2022. In 2022, the Maldives hopes to attract 1.6 million tourists. In 2021, GDP growth in the Maldives is expected to range between 31.6 and 38.5 percent. At the end of 2021, the Maldives’ state reserve was valued at USD 791.2 million.
Ireland
Growth in real GDP (Annual % change) – 13.0%
According to the European Commission’s Winter 2022 Economic Forecast, Ireland’s economy will grow by 5.5 percent in 2022, supported by a rapidly recovering labour market, a gradual reduction of large household savings through consumption, and a relatively benign financial situation in the corporate sector.
Aruba
Growth in real GDP (Annual % change) – 12.8%
Assuming that tourism arrivals continue to improve, the economic recovery should pick up steam in 2022, before returning to pre-pandemic levels in 2023. This will help the government’s coffers in 2022, before tax reforms are implemented (planned for 2023). Dutch liquidity support to offset the economic impact of the pandemic is expected to continue during the forecast period.
Panama
Growth in real GDP (Annual % change) – 12.0%
According to preliminary estimates, GDP increased 16.3 percent on an annual basis in the fourth quarter. The services sector grew 13.8 percent year on year in the fourth quarter, slowing from 21.2 percent in the third quarter and marking the slowest growth since Q1 2021. In terms of service subsectors, growth has slowed significantly in hotels and restaurants, retail trade, transportation, and real estate. Furthermore, the industrial sector slowed, growing 32.4 percent in Q4 due to slower growth in mining and manufacturing output.
Chile
Growth in real GDP (Annual % change) – 11.0%
Chile’s GDP is expected to grow faster than previously predicted in 2022, as strong global growth and favourable copper prices help to lift the country’s open market economy, according to Finance Minister Rodrigo Cerda on Friday.
According to the Public Finance Report that GDP is expected to grow by 3.5 percent from the previous year in 2022, up from a prior forecast of 2.5 percent.
Peru
Growth in real GDP (Annual % change) – 10.0%
Peru’s economy advanced 3.2 percent year-on-year in the fourth quarter of 2021, easing from an 11.4 per cent expansion in the previous period. Still, there was an increase in activity and demand, as the economy continued to recover from the recession brought by the pandemic. Focus Economics Consensus Forecast panellists project that the economy will expand 12.6% in 2022, and 6.4% in 2023.
Dominican Republic
Growth in real GDP (Annual % change) – 9.5%
Credit Suisse predicts that the global economy will grow by 4.3% in 2022, a figure that could improve as restrictions are relaxed. At the regional level, the Dominican Republic will lead the economic recovery this year. The reactivation of public investment, using Public-private partnerships will be key to achieving results.
