Which countries are doing the best in global economic growth?
A new report by the International Monetary Fund (IMF) has found that growth in emerging economies is outpacing that of richer nations.
The report, titled “Emerging Markets: A Cross-Section Report”, finds that developing countries “have emerged as the fastest-growing economies” and that they are growing at an annual rate of 6.5%.
The IMF said it will release its first annual global growth report next month.
It found that countries with high growth rates and high per capita income are “more likely to see higher growth in the medium and long run than poorer countries”.
“In the short run, this implies that growth rates of these countries are higher than those of the developing countries,” it said.
“But, the longer-term picture is less rosy.”
The IMF also found that emerging markets are not doing as well as richer nations in stabilising the global economy and that these are likely to worsen as countries face a rise in climate change and political instability.
The World Bank also highlighted the fact that “the majority of developing countries are facing the prospect of high global and regional poverty rates” and “poor performance in their growth and employment prospects” could “contribute to the further deterioration of the situation for the world’s poorest”.
“Despite a recent rise in global GDP and job growth, these trends suggest that poverty is unlikely to improve,” the World Bank said.
It said the “challenges facing developing countries” could include the “rising costs of living and the associated challenges to accessing services, education and healthcare, among others”.
The report says there is evidence emerging economies “are at risk of becoming less prosperous, and may be in need of assistance in stabilizing their economies”.
The IMF report said that “a number of countries have experienced a sharp deterioration in the economic performance of their economies over the past year”, including Argentina, Brazil, India, Russia, Turkey and Vietnam.
“In some countries, growth was not strong enough to support their current economic challenges, and even these countries could experience rapid increases in poverty in the years ahead,” it added.