In this article, we take a look at the 15 fastest growing countries in Asia. If you want to see more fastest growing countries in Asia, go directly to 5 Fastest Growing Countries in Asia.
Asia is the largest continent in the world that is home to over half of the world's population.
Some countries in Asia have more citizens than entire continents, in fact. China and India, for instance, each have around 1.4 billion people. Meanwhile, Europe only has 744 million people and the total combined population of North and South America is around 1.04 billion people. Australia only has 26 million people and the entire population of Africa is around 1.4 billion people.
Given its substantial population, Asia has a lot of potential in terms of economic growth.
In recent decades, China has grown substantially faster than average and the country is now the second largest economy in the world by nominal GDP. In 2021, China had a nominal GDP of $17.73 trillion and a GDP, PPP of $27.31 trillion. By comparison, the United States had a nominal GDP of $23.32 trillion and a GDP, PPP of $23 trillion for 2021.
In recent years, India, too has grown substantially faster than average. According to India's government, its economy grew 8.7% in the 2021/22 year, and GDP likely will rise 7% in the 2022/2023 year. As a result of its fast growth and substantial potential, India's economy is one of the largest in the world as India had a nominal GDP of $3.176 trillion, and a GDP, PPP of $10.19 trillion in 2021.
Multiple other countries in Asia such as Indonesia have also grown their economies substantially as their nations continue to develop.
As a result of China, India, and other Asian countries' growth, Asian real GDP grew on average 4.2% per year from 2017 to 2021 while developed markets on average only grew 1.4% per year in the same time period.
Over time, Asian economies have benefited from increasing urbanization and some Asian economies have also benefited from more exports and also more foreign direct investment.
In terms of exports, Asian exports have increased substantially in recent decades. According to the World Trade Organization, Asia accounted for around 36.3% of total global exports in 2021, up substantially from less than 20% in the early 1980s. As a result of the increase, Asia's share of total exports is just 0.6 percentage points below Europe's share of total exports for 2021.
Given the continued economic development in China, India, and other major Asian countries, Asia will likely exceed Europe in terms of total exports in the future. Exports are important for emerging markets as they can create new jobs that could spur even more economic growth.
2022 and 2023 for Asia
2022 has been a challenging year for many Asian economies as the Federal Reserve's interest rate increases have made growth harder. With the substantially higher interest rates in the United States, U.S. Treasury yields have increased considerably from the beginning of 2022. With the higher Treasury yields, some capital has moved from emerging markets into the United States. With more capital outflows, countries in Asia have less resources than they would have to grow.
If the Federal Reserve raises rates too much further, 2023 could also be challenging as it could lead to an economic slowdown or even a recession in the United States. Given the United States is a big importer of products from many countries around the world, an economic slow down in the United States could slow growth elsewhere.
Nevertheless, Asia as a whole has more above average growth left for the decades ahead if it can achieve its potential.
In terms of its potential, PricewaterhouseCoopers describes an economic projection for the world in 2050, entitled 'The World in 2050'.
In the projection, which was made in February 2017, the leading consultancy estimates that there could be 130% cumulative global GDP growth between 2016 and 2050. By 2050, China is projected to have 20% of the world GDP at PPPs. Meanwhile India's global GDP ranking by PPP will be second in the world with 15% share. The United States would have 12% share of world GDP by PPPs and the EU27 would have a 9% share.
If PricewaterhouseCoopers' is correct about 2050, Asia will likely be a much larger contributor of the global economy in the next few decades and countries like China and India will be even more important than they are today in terms of economic growth.
Many of the fastest growing countries in Asia are emerging market countries that are still developing their economies. Given emerging markets can arguably grow easier than developed markets, the growth rates of many of the fastest growing countries in Asia are considerably higher than the growth rates in developed markets.
Methodology
For our list of 15 Fastest Growing Countries in Asia, we used data from the International Monetary Fund's real GDP growth annual percentage change list for 2023.
The 2023 data is the International Monetary Fund's projections for 2023 published in October 2022.
Projections can and do change and given they are just projections, the actual growth rate for the year could be different depending on economic developments.
The International Monetary Fund, or IMF, is an international economic agency that tries to further growth and prosperity.
15 Fastest Growing Countries in Asia
15. Timor-Leste
2023 Projected Real GDP Growth Rate According to IMF: 4.2%
Timor-Leste is a Southeastern Asian nation with a population of 1.4 million people that the IMF expects to grow 4.2% in 2023. Timor-Leste became a sovereign state in 2002 and the country is an emerging market nation as it improves its infrastructure and increases its economic output. Currently oil and gas accounts for a substantial percentage of Timor-Leste's economic output and the country hopes to increase its natural gas production in the future. Given its projected growth rate, Timor-Leste ranks #15 on our list of 15 Fastest Growing Countries in Asia.
14. Bhutan
2023 Projected Real GDP Growth Rate According to IMF: 4.3%
Bhutan is a country in the Himalayas between China and India with a population of 777,486 in 2021. The IMF expects the economy to expand 4.3% in 2023, ranking Bhutan #14 on our list of 15 Fastest Growing Countries in Asia. Given its extensive forests, Bhutan is the only carbon negative country in the world as it absorbs more greenhouse gases from the atmosphere than the country emits.
13. Malaysia
2023 Projected Real GDP Growth Rate According to IMF: 4.4%
Malaysia is a Southeastern Asian country that's rapidly growing. According to Malaysia's Prime Minister Anwar Ibrahim, the country's GDP in 2022 will very likely exceed previous projections of between 6.5% and 7%. Prime Minister Anwar Ibrahim said, "This year's economic performance is encouraging as a result of the reopening of the economy in line with a shift to a COVID-19 endemic phase." For 2023, the IMF expects further growth for Malaysia of 4.4%.
12. Kazakhstan
2023 Projected Real GDP Growth Rate According to IMF: 4.4%
Kazakhstan is a central Asian country that was previously a former Soviet republic with a population of around 19 million as of 2021. Thanks to market oriented reforms and foreign direct investment, the country's economy has grown impressively since 2000. For 2023, the IMF expects the country to continue to grow at around 4.4%.
11. China
2023 Projected Real GDP Growth Rate According to IMF: 4.4%
China is expected to grow its economy by around 4.4% this year according to the IMF as its economy opens up after the pandemic lockdowns. Economists expect consumption in the country to increase and for the government to implement policies that could increase domestic demand. China's economy is Asia's largest and the second largest in the world by nominal GDP.
10. Uzbekistan
2023 Projected Real GDP Growth Rate According to IMF: 4.7%
Uzbekistan is a former Soviet republic that's located in Central Asia with a population of around 36 million people. Although inflation is still higher than normal, the country has benefited from increased remittances and resilient trade. In November, the IMF estimated that the country's economy will likely grow by around 6% in 2022. The agency expects Uzbekistan's economy to grow around 4.7% in 2023.
9. Philippines
2023 Projected Real GDP Growth Rate According to IMF: 5%
The Philippines is more than just the birthplace of boxer Manny Pacquiao who also was a senator in the country from 2016 to 2022. According to the IMF, the Philippines is also one of the fastest growing countries in Asia with an expected real GDP growth rate of 5% for 2023. For full year 2022, the country's economy also grew 7.6%, the fastest expansion since 1976.
8. Nepal
2023 Projected Real GDP Growth Rate According to IMF: 5%
Nepal is a country that borders India and China with a population of around 30.7 million. Inflation in the country eased to 7.38% for the month to mid-December, the lowest in around eight months as food and beverage inflation decreased. For 2023, the IMF expects Nepal's real GDP to grow by 5%, ranking the country #8 on our list of 15 Fastest Growing Countries in Asia.
7. Mongolia
2023 Projected Real GDP Growth Rate According to IMF: 5%
Mongolia is a country between Russia and China with a population of 3.5 million people where exports account for over half of the country's GDP. Given its proximity, China is Mongolia's biggest export market and the IMF expects Mongolia's economy to grow around 5% this year.
6. Indonesia
2023 Projected Real GDP Growth Rate According to IMF: 5%
Indonesia is a country comprised of 17,000 islands in Southeast Asia. Given its geography, resources, and population of around 277 million, Indonesia has substantial economic potential. In 2021, the country had a nominal GDP of $1.186 trillion, and a GDP, PPP of $3.57 trillion. The country's GDP expanded by 5.3% in 2022, and the IMF expects the country's GDP to expand 5% in 2023.
According to PricewaterhouseCoopers' 2050 projection, Indonesia could have the fourth largest economy in the world by PPP in 2050 given its growth.
