World’s Fastest Growing Economies 2013

cAmerica steps back from the “fiscal cliff” (or “kicks the can down the road”, to use perhaps a more appropriate metaphor) and the world’s stock indices, from the Hang Seng to the Dow Jones, soar to their highest level in months. Cynical Cassandra is not impressed. As The World in 2013 argues “the world economy’s woes are far from over“, with only the emerging economies (a phrase that now seems to cover countries that have long since emerged—witness China, second only to America in economic weight) promising robust growth for the coming year.

But it would be churlish for me to be so negative at the start of a year, so let me direct readers to another, more cheerful, part of The World in 2013: the list of the world’s ten fastest-growing economies.

The star performer will be Mongolia, followed by Macau. Both should give thanks to China (number four on the list): it is China’s demand for Mongolia’s minerals that is powering its economy; and it is Chinese gamblers who fill the casinos of Macau. China apart, the list consists of economies too small to move the world’s stock indices. But do they have attractions that size cannot measure? Bhutan (at number five) is undoubtedly beautiful and is blessed with hydroelectric power, and, now that their various wars or periods of political insurrection are over, there are surely advocates for Timor-Leste and the East African duo of Mozambique and Rwanda.Ghana, a model of stability in West Africa, has lots of fans—and promising oil reserves, too. Libya (number three) and Iraq (equal seventh) both have a lot of oil but not exactly great stability. The sad thing, however, is that (unless my eyes deceive me) of the fastest growing economies only China—ranked 49th—makes it into the 80 countries in The World in 2013′s list of the best places to be born this year. At the risk of sounding heretical to readers of The Economist, economic growth is clearly not the be-all and end-all of life…

source: the Economist

Weekly Review: Last Week’s Top 5 International Business Headlines

1France Eyes Libya Deals After Unfreezing $2 Billion Assets   (

France said on Monday it was ready to start releasing almost $2 billion in frozen assets belonging to Libya’s sovereign wealth fund, as it looks to secure investment from the oil-producing nation. France’s Foreign Minister Laurent Fabius made the announcement during a visit to Tripoli, the latest in a series of high-level French political and business delegations to the OPEC member. France spearheaded efforts to oust Libyan leader Muammar Gaddafi last year and, as part of wide-ranging international sanctions, froze about $8-9 billion in assets held in France. Read all.

2. East or West? Ukraine to Choose its Path Ahead of EU Summit this Month (Washington Post)

According to an old folk tradition, if a man knocks on the door of a Ukrainian beauty with a marriage proposal but does not win her heart, she will reject her suitor by presenting him with a pumpkin. Who will get the pumpkin from Ukraine at the end of this month — Russia or the European Union? Read all.

3. Europe’s Economic Rules. Berlin vs Brussels (The Economist)

SINCE the euro crisis started in early 2010, the debtor nations on the periphery of Europe have become used to strictures from Germany, not least for running big balance-of-payments deficits. On November 13th, for once, it was Germany’s turn to face a possible ticking-off. For the first time since more stringent rules and oversight were put in place to try to avert future crises, the euro area’s unofficial leader, hub economy and chief creditor is to be investigated. Its misdemeanour? Running too big a current-account surplus. Read all.

4. Is Europe Turning Japanese? (Wall Street Journal)

The euro zone’s 0.7% October inflation reading convinced the European Central Bank to cut interest rates last week. It also spurred a lot of nervous talk that low inflation and slow growth mean Europe is entering a Japanese-style “lost decade.” There are ominous similarities between the euro zone today and Japan at various points in the 1990s, even if you allow that economies can stagnate each in their own way. But there are also reasons not to believe that Europe is doomed to suffer Japan’s malaise. Read all.

5. Economic Overhaul: China Opens Doors to More Private Competition       (Russia Today)

In the biggest economic turnaround in two decades China’s leaders have pledged more private competition in dominant state industries. The new economic plan aims at rejuvenating a slowing economy and also eases limits on foreign investment in e-commerce. The changes promised in a Friday report issued after a closely watched Communist Party conference compares with the effort at market-style reforms in 1978 that launched China’s economic boom, the Associated Press says citing the state media. Read all.

Infographic: The global economy in 2030

China’s share of global economic power will hit 18% in the year 2030, matching the might of the American economy in the 1970s and Great Britain’s a century before that. That’s the forecast of Arvind Subramanian of the Peterson Institute for International Economics. In 2030, Subramanian predicts China will hold 18% of the world’s economy, the US 10.1% and India 6.3%. If those figures are right, then China is going to take over the US as the world’s economic superpower way before 2030 — not an inconceivable thought at the rate American politicians are pushing China to revalue the yuan while their own economy remains in the doldrums.


Via The Economist.