The whole world is changing. New people are born each second, increasing the population of their countries. Africa is not an exception. Its abundance of natural resources and young workflow promises that the fastest growing economy in Africa will rise significantly from 2018 to 2019.
So, let's check all the latest economy predictions for 7 African countries that had the fastest growing economies in 2018 and have very positive predictions for 2019.
Top 7 fastest growing economy in Africa 2018
According to imf.org, the growth of GDP in the region Africa was 3.9 percent of regional GDP growth in 2018. Thus, which countries will enter the list of the fastest developing countries in Africa with the fastest growing economy? Want to know? Read further, and at the end of the list you will find out the name of the country that had the fastest growing economy in Africa in 2018! The rates of GDP growth for each country are taken from the World Economic Outlook as of October 2018.
7. Tanzania (5.8%)
Tanzania is an African country with strong economic growth, which is situated in the eastern part of the African continent. The whole population of the country is calculated to have 55 million people, where 28 million people are young generation aged under 25.
Thus, it is not surprising for Tanzania to has reached the average GDP growth of 6.6% within the last 15 years. Nevertheless, the 2018 annual GDP growth was stated to be 5.8% and is predicted to reach 6.6% in 2019 according to IMF.
The most booming sectors making the country so prosperous are:
- Trade and repair;
- Water supply.
While agriculture, transport, and storage have also contributed a lot but less than those five as mentioned earlier.
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6. Ghana (6.3%)
Ghana is situated on the Gulf of Guinea in West Africa with a population of 29 million, 57% of who are young people under 25 years old. This factor alongside the oil and gas production allow Ghana’s economy to reach the point of 8.5% annual GDP rate in 2017 as it was stated on the IMF site.
The data for the year 2018 was said to slow down a bit and got 6.3% annual economic growth, but the 2019 year forecast predicts the annual GDP to rise up to 7.6%. However, still, the country is on the list of countries with the fastest growing economies on the continent in 2018.
These are the natural resources and the booming oil production that are expected to raise the country’s annual growth rate. Moreover, the country’s economic progress will be probably acquired due to the new oil wells that Ghana currently possesses, namely:
Thus, we hope Ghana will make all her best to reach the highest GDP growth rates in the future.
5. Djibouti (6.7%)
Djibouti is a small country situated in the eastern part of Africa. It is known to be a country of a small territory and young population, but with a strong economic position, which managed to keep the average GDP annual growth of 2.59 percent within the last 26 years. And is seen to have a 6.7% growth of GDP in 2019 as it was in the year 2018.
Thus, Djibouti government representatives have outlined the most significant part of their country’s economy to stay afloat. The main three tactics of them are:
- To improve the infrastructure, especially considering the ports;
- To increase the employment rates as well;
- To stimulate economic growth significantly.
They believe these main points are making the country one of the fastest developing countries in Africa.
4. Senegal (7%)
Senegal is the country that is situated in western Africa with a population of 16 million people, where its most half is represented by young generation under 25 years old. Thus, it is a likely factor for their GDP growth.
Therefore, the IMF statistics stated their GDP to slow down to the point of 7% in 2018 in comparison with 7.2% in 2017, which is anyway said to be great indexes. However, the tendency shows to fall a little more in 2019 and get 6.7% of annual GDP growth. The 2019 GDP rate growth will be possible due to the financial services and trade, agriculture, and fishing sectors mostly. Moreover, the economic growth of the country is said to increase also due to exports of zircon and peanuts.
3. Rwanda (7.2%)
The Republic of Rwanda is situated in the central-eastern part of Africa and has borders with Uganda, Congo, Burundi, and Tanzania. This country is thought to be one of the smallest in the continent, whose population is 12 million with 50% of it represented by the people under 20 years old.
It is another country, which made it possible to maintain a steady rate during the last 18 years. Its GDP annual growth rate was 7.32% and maintained 7.2% in 2018. Moreover, it is said to reach 7.8% economic growth in 2019. All it can be possible due to economic growth in the next areas:
- Retail and wholesale trading;
- Communication and information.
Moreover, Rwanda is applying a fiscal consolidation in order to provide adequate public spending, aiming to fight poverty and support further economic development.
2. Ivory Coast (7.4%)
Ivory Coast, with the official name the Republic of Cote d’Ivoire, is situated in West Africa and has borders with Burkina Faso and Ghana. Ivory Coast population is reaching the number of 25 million with its 57% of the whole population aged 24 or under.
Ivory Coast is called to be one of the most persistent countries in Africa, whose average growth rate is being 5.17% from 1961 till 2018.
Thus, holding its annual 2018 GDP growth at 7.4% with the predicted 7% in 2019, makes it stand on the strong and continuous position which place Ivory Coast on the top list of performing countries in the whole world.
Ivory Coast is also known to be very successful in the energy sector alongside the export sector. Thus, it is one of the biggest exporters of raw cashew nuts, coffee, palm oil, and cocoa. All these factors helped the country to gain the position of one of the fastest growing economies in 2018.
However, we all are very interested in which country is the fastest growing economy in Africa in 2018? Still, do not know? Then read attentively, you may be surprised!
1. Ethiopia (7.5%)
Yes, it's Ethiopia. Are you still surprised? Then read why it is said to be the fastest growing economy in Africa right now! Ethiopia is located in eastern Africa, with a number of 107-million population, whose 30% is made up of the young generation.
Ethiopia is seemed to grow stable at 10 percent for the last ten years with 10.9% in 2017 and 7.5% in 2018. And it is stated to reach 8.5% in 2019 according to the IMF statements.
The main sectors which make Ethiopia’s economy a great booming industry are:
Thus, it should be also said Ethiopia is to provide incredible growth in its industrial sector as well due to the use of corresponding industrialization tactics within the export field.
And be sure Ethiopia’s economy is not going to slow down in the future since it has all the perspectives in the further improvement of the agricultural and industrial sector's growth, fortified by the increasing foreign investors direct investments as well as a sound public infrastructure spending plan.
These are the top 7 list of the fastest growing economies in Africa in 2018 with all the relevant information on the previous years and some predictions for their future. We hope you have enjoyed it a lot!