Norway's economy continues to take the lead on the global stage, ranking as the best economy for the second consecutive year, demonstrating substantial growth and resilience compared to its contemporaries.
Norway's ascendancy can be attributed to several factors, including its substantial energy exports, which significantly contribute to its national income. The profits from these exports are carefully reinvested within the country rather than being shifted offshore by foreign corporations. For example, income generated from Norway's North Sea oil and gas fields is directed to the nation's sovereign wealth fund, which plays a pivotal role in financing social welfare and infrastructure developments.
According to the latest report from the Independent Australia ranking on economic management (IAREM) for 2024, Norway has seen its economy thrive due to impressive budget surpluses and low unemployment rates. Norway's Prime Minister Jonas Gahr Støre and his Labour government have effectively maintained high levels of wealth distribution, as evidenced by the fact it ranks ninth worldwide concerning both median and mean average wealth, according to the latest UBS Wealth Report.
Following Norway, Denmark and the United Arab Emirates are also performing exceptionally well, showcasing their strong economies. Interestingly, Australia's economy has made considerable strides, propelling it from 13th place to seventh within the global rankings. This improvement is due to multiple factors, such as significant job growth, wealth increases per adult, and favorable GDP growth rates relative to other countries.
Meanwhile, the United States remains within the top 20 globally, benefiting from strong income per capita and continued growth of its gross domestic product (GDP).
The IAREM outlines the best-performing economies globally for 2024 as follows: Norway, Denmark, UAE, Hong Kong, Switzerland, Oman, Australia, South Korea, Singapore, and Iceland.
Interestingly, the IAREM scoring system incorporates eight indicators assessing national economies, including GDP growth, inflation, tax levels, and unemployment rates. This multifaceted approach allows for greater insights and comparisons among varying global economies, as opposed to simpler measurement tools.
New Zealand, on the other hand, is gearing up to capitalize on the booming AI sector, predicted to contribute $15.7 trillion to the global economy by 2030. With its unique positioning and innovative thinking, Kiwi entrepreneurs have the opportunity to leverage AI within their operations, thereby resolving long-standing challenges related to productivity. By focusing on automation and technological forums, New Zealand aims to become more competitive on the global stage.
Key areas for New Zealand's AI application can be found within healthcare, education, and agricultural sectors. The capacity to accurately diagnose health conditions or predict educational outcomes before they occur may fundamentally change operational frameworks within these sectors. This shift aligns with global trends, where AI companies are becoming increasingly prevalent, presenting opportunities for broader economic growth and innovation.
Prime Minister Pham Minh Chinh has also reported impressive growth projections for Vietnam, as the country prepares for national elections. Economic growth is anticipated to reach 6.8% to 7% for the entire year, surpassing the National Assembly's original target range of 6% to 6.5%. Chinh states, “This will help position Vietnam among the countries with the highest economic growth in the region and globally.”
Support from international institutions has been fundamental for Vietnam, as evidenced by credit rating upgrades from major agencies like Fitch Ratings and Moody’s. These upgrades highlight the growing confidence surrounding Vietnam’s economic potential and outlook.
With 14 out of 15 economic targets projected to be met by 2024, there's considerable optimism around achieving goals aimed at bolstering GDP per capita to $4,647 if growth exceeds 7% this year. Such impressive results are particularly notable against lower projected growth rates from regional rivals, such as Singapore (3%), Thailand (2.4%), Malaysia (4.9%), and Indonesia (5%).
Vietnam’s government recognizes the need for improved public investment disbursements as one strategy to maintain economic growth momentum. Chinh emphasizes the urgency of accelerating public investment and infrastructure projects, describing these initiatives as catalysts for attracting more substantial investments.
The Ministry of Finance estimates Vietnam's total public investment for next year will amount to roughly $32.3 billion, but has acknowledged current disbursement levels lagging behind expectations. The government has set ambitious targets of reaching at least 95% of the planned disbursement by the end of the year, with Prime Minister Chinh urging rapid action.
Key infrastructure plans moving forward involve enhancements to major expressways, international airport developments, and the construction of pivotal railway projects. The state is particularly focused on large-scale projects intended to improve national transport capabilities, contribute to energy efficiency, and address the impacts of climate change, all of which could bolster economic development.
Other similar nations are also witnessing economic growth, with investment trends highlighting the strong influence of technology and innovation as key drivers. The growing tech sectors worldwide, particularly around AI and renewable energy, offer considerable potential for job creation and enhanced productivity.
A collaborative approach and international partnerships could serve as cornerstones for enhancing each nation's economic standing, presenting opportunities for growth, investment, and cross-border trade. The emphasis on renewable energy reflects not only sustainable practices but also caters to the rising demand for energy consumption, particularly within high-tech sectors associated with AI and chip production.
Through this era of economic fluctuation, countries like Norway, Australia, New Zealand, and Vietnam appear committed to fostering environments conducive to growth, stability, and innovation. Whether through strategic public investment, the advancement of AI technologies, or the commitment to renewable energy, these nations seem poised to navigate the challenges of the global economy effectively. The next few years will be instrumental as they continue to adapt and implement strategies to improve their economic health and resilience.