By:- Iswar Dey
After the financial crisis in 2008, the world’s economy has shown a steady increase. To this, Gross Domestic Projection (GDP) growth has been projected to be 2.7% in 2018 marginally less than 2017’s GDP growth which was 2.9%, according to the Economist Intelligence Unit.
The largest contributor to this will again be China, whose GDP growth is projected to be 5.8% this year, which makes almost one third of the global economic growth.
China’s President Xi Jinping said he wants a steady growth given the country’s economic risk due to its mountain of debt. This leaves India as the fastest growing economy in 2018 with a GDP growth of 7.8%, according to EIU.
Economy of Southeast Asian nations like Vietnam, Myanmar, Laos and Cambodia are also calculated to have grown by above 6% by the end of 2018.
The developed countries cannot hope to compete with this rapid pace of GDP growth in the developing countries. Yet, most of the developed countries are formulated to have a GDP growth of 2% and even near-moribund economy Italy would have a growth of 1.4% which is quite respectable.
But the most important point is the spectrum of positive GDP growth that would happen in 2018. Only four countries are expected to have a demotion in 2018 economy. The wounds in Venezuela, likely to be the worst performer with an 11.9% loss, are self-inflicted, as gross mismanagement has led to hyperinflation and a looming sovereign-debt default.
North Korea is also paying the price for its policies; it faces ever-tightening international sanctions in response to the growth of its nuclear-weapons programme. And the economy of Puerto Rico, technically an overseas territory of the United States, is forecast to shrink by 8%, in the wake of a devastating hurricane that has left much of the island without electricity.