In this piece, we will take a look at the top 30 developing countries in the world. For more countries, head on over to Top 5 Developing Countries in the World.
There are 193 countries in the world. But only a few account for the bulk of the global economic output as this metric also follows the Pareto Law like others. In fact, according to the World Economic Forum, the global economy was worth a whopping $86 trillion as of 2019. Out of this, the U.S. alone represented almost one fourth of the total economic output, with a $20.76 trillion GDP. In second place was China with its $13.6 trillion economy, beating Japan whose gross domestic product (GDP) was worth $4.97 trillion. Cumulatively, the top fifteen countries, with the last one on the list, Mexico, with its $1.5 trillion GDP, represented a stunning 75% of the total world economic output.
The latest GDP data, courtesy of the World Bank, shows that little has changed in terms of ranking. While the global GDP was worth $96 trillion in 2021, the largest economy was still the U.S., which was worth $23 trillion, with China and Japan coming in at second and third places, respectively, as their economies were worth $17 trillion and $4.9 trillion. Mexico was still the fifteenth largest economy in the world, with its economy falling to $1.2 trillion. Cumulatively, the top fifteen economies saw their global share of the economic pie increase between 2019 and 2021, as the coronavirus pandemic strained developing countries. This share was equal to $73 trillion or 76% of the total economic pie.
Naturally, as is evident through these details, not all economies are the same. The International Monetary Fund (IMF) classifies 152 countries as developing nations, which makes it clear that most of the world’s regions are developing and not developed. These countries have a cumulative population of 6.74 billion, implying that more than two thirds of the global population live in them. The onset of the coronavirus pandemic and the Russian invasion of Ukraine has made life much harder for these countries. A large chunk of them had relied on cheap global credit to fuel their growth, but with the U.S. Federal Reserve’s aggressive interest rate hikes last year, capital has started to fly out of these and into safe U.S. capital markets instead. The IMF, which is responsible for bailing these countries out, estimates that during the coronavirus pandemic, when the Federal Reserve dropped interest rates to a record low, an estimated $100 billion made its way into emerging markets as the costs of borrowing for these countries dropped and global risk aversion to emerging markets came down.
At the same time, since these markets often offer higher interest rates than the developed world, funds known as ‘hot money’ also went towards them, helping stabilize their exchange rates and bolster foreign exchange reserves. Yet, what the Fed giveth, it taketh away, as the interest rate hikes of 2022 led to $87 billion in capital flowing away from these markets last year according to research from Lazard Asset Management, representing almost 10% of the total asset class. So far this year, the situation appears to be stabilizing, as according to the Institute of International Finance, as of January 27, 2023, approximately $1.1 billion of capital flowed into emerging markets per day – reversing to an extent the horrors of 2022.
Our Methodology
To compile our list, we used the IMF’s definition of developing countries to narrow down our selection of developing countries and then ranked them according to the gross national income (GNP) per capita. The GNI (gross national income) data was sourced from the World Bank, and the top thirty countries were picked for this analysis. Then, to gauge their development levels, their Human Development Index (HDI) score was determined and the countries were ranked through this score.
Top 30 Developing Countries in the World
30. Bolivarian Republic of Venezuela
HDI Score: 0.691
Bolivarian Republic of Venezuela is a South American country with a $191 billion GDP and a $7,108 per capita income. Venezuela has a GNI per capita of $13,080 and its HDI score is 0.691.
29. Saint Lucia
HDI Score: 0.715
Saint Lucia is a West Indian country located in the Caribbean Sea. It has a $3 billion GDP and a $16,417 GDP. Its GNI per capita is $9,520 and the country has an HDI score of 0.715.
28. Republic of Seychelles
HDI Score: 0.725
The Republic of Seychelles is a multi island nation in the Indian Ocean. It has a $3.7 billion GDP, which is one of the smallest in the world. Seychelles’ GNI per capita is $14,540 and its HDI score is 0.785.
27. Republic of Maldives
HDI Score: 0.747
The Republic of Maldives is a chain of islands in the Indian Ocean. It has a $11.4 billion economy and a GDP per capita of $29,133. Maldives’ GNI per capita is $9,600.
26. United Mexican States
HDI Score: 0.758
The United Mexican States, or simply Mexico, is a North American country with one of the largest economies in the world. Mexico shares a large land border with the U.S., and it has a GNI per capita of $9,590 alongside an HDI score of 0.758.
25. Republic of Palau
HDI Score: 0.767
The Republic of Palau is an island nation in the Pacific Ocean. It has a $300 million GDP since it is one of the smallest countries in the world. At the same time, Palau’s GNI per capita is relatively higher, sitting at $12,790.
24. People’s Republic of China
HDI Score: 0.768
The People’s Republic of China is the largest country in the world in terms of population and nominal GDP. It is also a major power player in global politics. China’s GNI per capita is $11,880.
23. Federation of Saint Christopher and Nevis
HDI Score: 0.777
Federation of Saint Christopher and Nevis, commonly known as St. Kitts and Nevis, is one of the smallest countries in the world and is located in the West Indies. This is also reflected in its GDP, which is a low $1.7 billion, but the country has a high GDP per capita of $31,095. Its HDI score is 0.777.
22. Antigua and Barbuda
HDI Score: 0.788
Antigua and Barbuda is a West Indian island nation. It has one of the smallest economies in the world of $2.7 billion but a relatively higher per capita income of $21,298. Additionally, Antigua and Barbuda’s GNI per capita is $15,780 and its HDI score is 0.788.
21. Barbados
HDI Score: 0.790
Barbados is a West Indian Island country. It has a $5 billion GDP and a per capita income of $17,314. Barbados is one of the few countries on our list whose GDP per capita nearly matches the GNI per capita since the latter sits at $16,900 – indicating that its economy is fueled primarily by local firms.
20. Republic of Bulgaria
HDI Score: 0.795
The Republic of Bulgaria is a Southeastern European country. Its economy is estimated to sit at $203 billion as of 2022, lending it a GDP per capita of $27,890. Bulgaria’s GNI per capita is $11,200.
19. Republic of Mauritius
HDI Score: 0.802
The Republic of Mauritius is an island country in the Indian Ocean. The country has a GDP of $31.7 billion, which is one of the lowest in the world. Mauritius’s GNI per capita is $9,920.
18. Malaysia
HDI Score: 0.803
Malaysia is a Southeast Asian country with territories separated by the South China Sea. It has a $1.1 trillion GDP, a $33,113 GDP per capita, and a $10,710 GNI per capita.
17. Republic of Panama
HDI Score: 0.805
The Republic of Panama is a North and South American country. It has a $128 billion GDP and a relatively high per capita income of $29,608. However, Pana’s GNI per capita is $13,920 and its HDI score is 0.805.
16. Republic of Costa Rica
HDI Score: 0.809
The Republic of Costa Rica is a Central American country with a $129 billion GDP and a $24,837 GDP per capita. It primarily exports fruits and medical instruments and has a GNP per capita of $12,310.
15. Oriental Republic of Uruguay
HDI Score: 0.809
The Oriental Republic of Uruguay, or simply Uruguay, is a South American country that is one of the most peaceful nations in the region. It has a $96 billion GDP, a GNI per capita of $16,080 and an HDI score of 0.809.
14. Republic of Trinidad and Tobago
HDI Score: 0.810
The Republic of Trinidad and Tobago is a Caribbean island nation. It has a $42 billion economy and a $29,783 GDP per capita. The country’s GNI per capita is $15,000 and its HDI score is 0.810.
13. Commonwealth of The Bahamas
HDI Score: 0.812
The Commonwealth of The Bahamas is another island country in the North Atlantic Ocean. It is notorious for being a tax free zone, prompting many firms to set up their tax headquarters in the country. Bahamas’ HDI score is 0.812 and it has a relatively high GNI per capita income of $26,490.
12. Sultanate of Oman
HDI Score: 0.816
The Sultanate of Oman is a Western Asian Arab country. It has a $165 billion GDP and a $35,286 GDP per capita. Oman’s GNI per capita sits at $17,950, and its human development index score is 0.816.
11. Romania
HDI Score: 0.821
Romania is a landlocked European country. Its GDP is worth $780 billion, lending it a high GDP per capita of $40,672. Romania’s gross national income per capita is less than half of its GDP per capita and sits at $14,160. The country’s HDI score is 0.821.
10. Russian Federation
HDI Score: 0.822
The Russian Federation is a European and Asian country. It is a global power and has significant fossil fuel reserves. Russia’s GDP is equal to $4.6 trillion and its GNI per capita is $11,610.
9. Nation of Brunei
HDI Score: 0.829
The Nation of Brunei is a South Asian coastal country. Despite having a small $31 billion GDP, it has one of the highest per capita incomes in the world at $74,952. Brunei also has some of the higher HDI scores in our list, which stands at 0.829, alongside a per capita GNI of $30,320 – making it rank third on our list in terms of GNI per capita.
8. State of Kuwait
HDI Score: 0.831
The State of Kuwait is another Western Asian Arab country. It has a $248 billion GDP and a $51,528 GDP per capita. Kuwait’s GNI per capita is one of the highest in the world, sitting at $34,290, allowing it to have the second largest GNI per capita on our list. Its HDI score is 0.831.
7. Republic of Türkiye
HDI Score: 0.838
Republic of Türkiye is a European and Asian country. It has a GDP of $3.54 trillion along with a per capita income of $40,883. Turkey’s GNI per capita is $9,900.
6. Argentine Republic
HDI Score: 0.842
The Argentine Republic, commonly known as Argentina, is a South American country. It has a $1.2 trillion economy and a GDP per capita of $26,074. Additionally, Argentina’s gross national income per capita is $9,960.
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Disclosure: None. Top 30 Developing Countries in the World is originally published on Insider Monkey.