These 4 Countries Have Faster GDP Growth Than the US
The U.S. economy is facing an unexpected downturn in 2025, with the Atlanta Federal Reserve projecting a 1.5 percent GDP contraction in the first quarter, reversing earlier expectations of 2 percent growth.
This sharp shift has intensified fears of a potential recession under President Donald Trump, with concerns over a so-called “Trumpcession” growing as consumer confidence dips and economic uncertainty deepens amid steep tariffs and persistent inflation.
Why It Matters
Trump will deliver the first joint address to Congress of his second term on Tuesday night as concerns about the economy continue to grow.
Economists cite his aggressive trade policies, deep spending cuts and rising market uncertainty as key factors behind the downturn. In January, the U.S. trade deficit hit a record $153 billion, fueled by companies rushing to import goods ahead of new tariffs, further slowing economic growth.
Wall Street has reacted sharply. The Nasdaq has dropped 9 percent in just 10 days, and Treasury yields have fallen as investors seek safer assets. On Monday, ahead of proposed tariffs on Mexico, Canada and China, the Dow Jones Industrial Average fell 650 points, or about 1.5 percent, after briefly plunging 800 points following Trump’s remarks. The S&P 500 lost 1.75 percent, its worst decline since December.
The Taj Mahal, a marble mausoleum built by the Muslim Mughal emperor Shah Jahan in memory of his wife, Mumtaz Mahal, in India.
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What To Know
The U.S. economy appeared strong just 10 days ago, but new indicators suggest emerging trouble.
Consumer sentiment has plunged at its fastest rate in three years, according to a University of Michigan survey, while major retailers like Walmart have warned that spending is slowing.
Despite these warning signs, the Trump administration is pressing ahead with tariffs on Mexico, Canada and China while also issuing trade threats to other allies. At the same time, deep federal budget cuts—led by Elon Musk’s Department of Government Efficiency (DOGE)—are moving forward.
Commerce Secretary Howard Lutnick said Sunday that government spending could be excluded from gross domestic product (GDP) calculations in response to concerns that Musk’s spending cuts might trigger an economic downturn. However, economists warn that such a change could distort a key measure of the U.S. economy’s health.
Analysts have also noted that wealthy Americans—who drive nearly half of U.S. consumer spending—may reduce their spending if stock market declines persist.
While the U.S. economy faces uncertainty early in Trump’s second term, some smaller economies are projected to grow at a faster rate this year.
However, it is important to note that none of these countries come close to matching the sheer scale and influence of the U.S. economy. Here are four nations expected to outpace the U.S. in GDP growth this year.
World’s Fastest-Growing Economies
1. Guyana (South America)
Guyana is leading the world in economic growth, with a projected 33.9 percent GDP increase, Global Finance Magazine reported. The country’s booming offshore oil sector, producing 650,000 barrels per day, has transformed its economy.
To avoid the “resource curse” that has plagued other oil-rich nations, Guyana has set up a sovereign wealth fund to invest in infrastructure, health care and education. However, concerns over corruption, income inequality and environmental risks remain.
2. Macao (Asia)
Macao’s economy is set to grow by 13.9 percent, FDI Intelligence reported, recovering from years of pandemic-driven losses. The region’s casinos and high-spending Chinese tourists are fueling the rebound.
To diversify, Macao is expanding into finance, tech and entertainment, but its long-term success is tied to China’s economic stability.
3. Niger (Africa)
Niger’s economy is projected to expand by 10.4 percent, making it the fastest-growing economy in Africa, FDI Intelligence reported. The boost is a result of new oil exports via a Chinese-built pipeline, which is expected to drive massive government revenues.
However, political instability and lingering sanctions from a 2023 military coup could slow progress.
4. India (Asia)
India’s economy is expected to grow by 6.8 percent, making it one of the fastest-growing major economies, FDI Intelligence reported. Growth is being driven by manufacturing, technology, infrastructure investments, and domestic consumption.
With a young workforce and rising middle class, India is increasingly seen as a manufacturing alternative to China, attracting major investments from companies like Apple and Tesla. However, high inflation and global trade tensions remain potential risks.
What People Are Saying
Elon Musk, head of DOGE, on X, formerly Twitter: “A more accurate measure of GDP would exclude government spending.”
Mark Zandi, chief economist at Moody’s Analytics, on X: “Tariff wars, DOGE cuts to jobs and government programs and agencies, and deportations are sowing confusion, which puts a pall on investment, hiring and spending […] Lawmakers need to get it together soon, or the economy will go from gagging to choking.”
Gerard Lyons, chief economic strategist at Netwealth, told Newsweek: “If higher tariffs trigger a rerouting in trade, then U.S. price levels may not rise. For instance, higher taxes on Chinese goods previously led to an increase in imports from Vietnam, not hit by tariffs.”
What Happens Next
After Trump launched tariffs on Tuesday against the three biggest U.S. trading partners, China responded with tariffs of up to 15 percent on a wide range of American farm exports. Canada announced plans to impose tariffs on more than $100 billion worth of U.S. goods within 21 days, while Mexico said it would introduce its own retaliatory tariffs.