In 2027, the economies of three countries are expected to contract
According to International Monetary Fund forecasts, Iraq, Qatar, and Kuwait are expected to lead the world in economic growth rates in 2027. However, the high indicators are primarily related to a recovery following a sharp decline in 2026 and depend on the normalization of shipping in the Strait of Hormuz.
Economies of three countries expected to contract in 2027
The ranking compiled by Visual Capitalist is based on the International Monetary Fund's (IMF) "World Economic Outlook" report published in October 2026. It compares countries by expected real gross domestic product (GDP) growth rates in 2027.
Iraq took first place in the ranking with a forecast growth of 19 percent. Qatar followed in second place with 18.8 percent, and Kuwait with 17.1 percent.
The high growth rates in these countries are expected following a sharp contraction in economic activity. The IMF projected that Iraq's economy would contract by 16 percent in 2026, Qatar's by 15.6 percent, and Kuwait's by 16.7 percent. Therefore, the large growth figures for the following year mainly represent a recovery of lost production volumes.
In the Middle East, the expected post-war recovery with Iran could increase the extraction and export volumes of oil and other energy resources. However, this scenario depends on how quickly shipping through the Strait of Hormuz is restored.
The calculations assume that traffic in the strait will gradually begin to recover from March 2027, and by October shipping conditions will largely return to pre-war status.
Outside the Middle East, one of the highest rates is expected in Guyana. The country ranks fourth in the list with a forecast growth of 16.8 percent. Its economy continues to grow rapidly due to the expansion of offshore oil production.
Vietnam and India are also among the fastest-growing economies. GDP is projected to increase by 7.5 percent in Vietnam and by 7 percent in India. Growth in Vietnam is expected to be supported by exports of industrial products, and in India by domestic consumption.
Among the countries included in the ranking, three economies are projected to contract. GDP is expected to decrease by 1.5 percent in Bolivia, by 1 percent in Equatorial Guinea, and by 0.5 percent in Haiti.
A number of major developed countries are also projected to see sluggish growth. Economic growth in Italy, France, and Japan may not even reach 1 percent. Growth of 1.1 percent is expected for Germany, and 1.2 percent for the United Kingdom.
High energy prices in Europe are limiting consumption and industrial activity. Increasing competition with Chinese exporters is also expected to remain a factor slowing EU economic growth until 2028. European manufacturers face fierce competition both in the domestic market and abroad.