Markets in a Minute
Mapped: GDP Growth by Country in 2021
This infographic is available as a poster.
This infographic is available as a poster.
A Recap of GDP Growth by Country in 2021
The global economy faced numerous challenges in 2021. While COVID-19 vaccinations became more widely available in some countries, variants led to further waves in the pandemic. While consumer demand began to recover, supply chain disruptions restricted supply.
Despite these and other hurdles, the world economy expanded by 6.1% in 2021. In this Markets in a Minute from New York Life Investments, we explore GDP growth by country to see which countries had the best and worst growth. It’s the first in a two-part series that explores GDP growth around the world.
What is the Base Effect?
Before diving into the data, it’s worth highlighting that 2021’s GDP growth numbers are impacted by the base effect. Whenever growth is shown over a time period, it is being compared to a “base” or starting value. If the base value is abnormally high or low, it can distort the growth figures.
In this case, the year-over-year growth is comparing growth from 2020 to 2021. Since the COVID-19 pandemic caused 2020 GDP growth to be negative in many countries, 2021 GDP growth is measured from a lower starting point. This can make percentage growth appear higher, though in many cases economies were simply recovering from the pandemic slump.
GDP Growth by Country
With this in mind, the table below shows real GDP growth by country in 2021, along with a comparison against 2020’s numbers.
Libya experienced the highest growth rate of 177.3%. The country moved toward ending its decade-long conflict, which resulted in a rebound of oil production and economic activity. Rising oil prices have also contributed to the country’s recovery, given the oil and gas sector accounts for 60% of Libya’s GDP. However, caution should be taken with this figure as there is considerable uncertainty against the backdrop of the civil war.
| Country | 2020 | 2021 |
|---|---|---|
| Afghanistan | -2.4% | n/a |
| Albania | -3.5% | 8.5% |
| Algeria | -4.9% | 4.0% |
| Andorra | -11.2% | 8.9% |
| Angola | -5.6% | 0.7% |
| Antigua and Barbuda | -20.2% | 4.8% |
| Argentina | -9.9% | 10.2% |
| Armenia | -7.4% | 5.7% |
| Aruba | -22.3% | 16.8% |
| Australia | -2.2% | 4.7% |
| Austria | -6.7% | 4.5% |
| Azerbaijan | -4.3% | 5.6% |
| Bahrain | -4.9% | 2.2% |
| Bangladesh | 3.5% | 5.0% |
| Barbados | -13.7% | 1.4% |
| Belarus | -0.7% | 2.3% |
| Belgium | -5.7% | 6.3% |
| Belize | -16.7% | 9.8% |
| Benin | 3.8% | 6.6% |
| Bhutan | -2.4% | -3.7% |
| Bolivia | -8.7% | 6.1% |
| Bosnia and Herzegovina | -3.1% | 5.8% |
| Botswana | -8.7% | 12.5% |
| Brazil | -3.9% | 4.6% |
| Brunei Darussalam | 1.1% | -0.7% |
| Bulgaria | -4.4% | 4.2% |
| Burkina Faso | 1.9% | 6.9% |
| Burundi | 0.3% | 2.4% |
| Cabo Verde | -14.8% | 6.9% |
| Cambodia | -3.1% | 2.2% |
| Cameroon | 0.5% | 3.5% |
| Canada | -5.2% | 4.6% |
| Central African Republic | 1.0% | 1.0% |
| Chad | -2.2% | -1.1% |
| Chile | -6.1% | 11.7% |
| China | 2.2% | 8.1% |
| Colombia | -7.0% | 10.6% |
| Comoros | -0.3% | 2.2% |
| Costa Rica | -4.1% | 7.6% |
| Côte d'Ivoire | 2.0% | 6.5% |
| Croatia | -8.1% | 10.4% |
| Cyprus | -5.0% | 5.5% |
| Czech Republic | -5.8% | 3.3% |
| Democratic Republic of the Congo | 1.7% | 5.7% |
| Denmark | -2.1% | 4.1% |
| Djibouti | 1.0% | 4.0% |
| Dominica | -11.0% | 3.7% |
| Dominican Republic | -6.7% | 12.3% |
| Ecuador | -7.8% | 4.2% |
| Egypt | 3.6% | 3.3% |
| El Salvador | -7.9% | 10.3% |
| Equatorial Guinea | -4.9% | -3.5% |
| Eritrea | -0.6% | 2.9% |
| Estonia | -3.0% | 8.3% |
| Eswatini | -1.9% | 3.1% |
| Ethiopia | 6.1% | 6.3% |
| Fiji | -15.2% | -4.0% |
| Finland | -2.3% | 3.3% |
| France | -8.0% | 7.0% |
| Gabon | -1.9% | 0.9% |
| Georgia | -6.8% | 10.4% |
| Germany | -4.6% | 2.8% |
| Ghana | 0.4% | 4.2% |
| Greece | -9.0% | 8.3% |
| Grenada | -13.8% | 5.6% |
| Guatemala | -1.5% | 8.0% |
| Guinea | 6.4% | 4.2% |
| Guinea-Bissau | 1.5% | 3.8% |
| Guyana | 43.5% | 19.9% |
| Haiti | -3.3% | -1.8% |
| Honduras | -9.0% | 12.5% |
| Hong Kong SAR | -6.5% | 6.4% |
| Hungary | -4.7% | 7.1% |
| Iceland | -7.1% | 4.3% |
| India | -6.6% | 8.9% |
| Indonesia | -2.1% | 3.7% |
| Iraq | -15.7% | 5.9% |
| Ireland | 5.9% | 13.5% |
| Islamic Republic of Iran | 1.8% | 4.0% |
| Israel | -2.2% | 8.2% |
| Italy | -9.0% | 6.6% |
| Jamaica | -10.0% | 4.4% |
| Japan | -4.5% | 1.6% |
| Jordan | -1.6% | 2.0% |
| Kazakhstan | -2.6% | 4.0% |
| Kenya | -0.3% | 7.2% |
| Kiribati | -0.5% | 1.5% |
| Korea | -0.9% | 4.0% |
| Kosovo | -5.3% | 9.5% |
| Kuwait | -8.9% | 1.3% |
| Kyrgyz Republic | -8.6% | 3.7% |
| Lao P.D.R. | -0.4% | 2.1% |
| Latvia | -3.8% | 4.7% |
| Lebanon | -22.0% | n/a |
| Lesotho | -6.0% | 2.1% |
| Liberia | -3.0% | 4.2% |
| Libya | -59.7% | 177.3% |
| Lithuania | -0.1% | 4.9% |
| Luxembourg | -1.8% | 6.9% |
| Macao SAR | -54.0% | 18.0% |
| Madagascar | -7.1% | 3.5% |
| Malawi | 0.9% | 2.2% |
| Malaysia | -5.6% | 3.1% |
| Maldives | -33.5% | 33.4% |
| Mali | -1.2% | 3.1% |
| Malta | -8.3% | 9.4% |
| Marshall Islands | -2.4% | -1.5% |
| Mauritania | -1.8% | 3.0% |
| Mauritius | -14.9% | 3.9% |
| Mexico | -8.2% | 4.8% |
| Micronesia | -1.8% | -3.2% |
| Moldova | -8.3% | 13.9% |
| Mongolia | -4.6% | 1.4% |
| Montenegro | -15.3% | 12.4% |
| Morocco | -6.3% | 7.2% |
| Mozambique | -1.2% | 2.2% |
| Myanmar | 3.2% | -17.9% |
| Namibia | -8.5% | 0.9% |
| Nauru | 0.7% | 1.6% |
| Nepal | -2.1% | 2.7% |
| Netherlands | -3.8% | 5.0% |
| New Zealand | -2.1% | 5.6% |
| Nicaragua | -2.0% | 10.3% |
| Niger | 3.6% | 1.3% |
| Nigeria | -1.8% | 3.6% |
| North Macedonia | -6.1% | 4.0% |
| Norway | -0.7% | 3.9% |
| Oman | -2.8% | 2.0% |
| Pakistan | -1.0% | 5.6% |
| Palau | -9.7% | -17.1% |
| Panama | -17.9% | 15.3% |
| Papua New Guinea | -3.5% | 1.7% |
| Paraguay | -0.8% | 4.2% |
| Peru | -11.0% | 13.3% |
| Philippines | -9.6% | 5.6% |
| Poland | -2.5% | 5.7% |
| Portugal | -8.4% | 4.9% |
| Puerto Rico | -3.9% | 1.0% |
| Qatar | -3.6% | 1.5% |
| Republic of Congo | -8.1% | -0.2% |
| Romania | -3.7% | 5.9% |
| Russia | -2.7% | 4.7% |
| Rwanda | -3.4% | 10.2% |
| Samoa | -2.6% | -8.1% |
| San Marino | -6.6% | 5.2% |
| São Tomé and Príncipe | 3.0% | 1.8% |
| Saudi Arabia | -4.1% | 3.2% |
| Senegal | 1.3% | 6.1% |
| Serbia | -0.9% | 7.4% |
| Seychelles | -7.7% | 8.0% |
| Sierra Leone | -2.0% | 3.2% |
| Singapore | -4.1% | 7.6% |
| Slovak Republic | -4.4% | 3.0% |
| Slovenia | -4.2% | 8.1% |
| Solomon Islands | -4.3% | -0.2% |
| Somalia | -0.3% | 2.0% |
| South Africa | -6.4% | 4.9% |
| South Sudan | -6.6% | 5.3% |
| Spain | -10.8% | 5.1% |
| Sri Lanka | -3.6% | 3.6% |
| St. Kitts and Nevis | -14.0% | -3.6% |
| St. Lucia | -20.4% | 6.8% |
| St. Vincent and the Grenadines | -5.3% | -0.5% |
| Sudan | -3.6% | 0.5% |
| Suriname | -15.9% | -3.5% |
| Sweden | -2.9% | 4.8% |
| Switzerland | -2.5% | 3.7% |
| Syria | n/a | n/a |
| Taiwan Province of China | 3.4% | 6.3% |
| Tajikistan | 4.4% | 9.2% |
| Tanzania | 4.8% | 4.9% |
| Thailand | -6.2% | 1.6% |
| The Bahamas | -14.5% | 5.6% |
| The Gambia | -0.2% | 5.6% |
| Timor-Leste | -8.6% | 1.8% |
| Togo | 1.8% | 5.1% |
| Tonga | 0.7% | -0.7% |
| Trinidad and Tobago | -7.4% | -1.0% |
| Tunisia | -9.3% | 3.1% |
| Turkey | 1.8% | 11.0% |
| Turkmenistan | -3.0% | 4.9% |
| Tuvalu | 1.0% | 2.5% |
| Uganda | -1.4% | 5.1% |
| Ukraine | -3.8% | 3.4% |
| United Arab Emirates | -6.1% | 2.3% |
| United Kingdom | -9.3% | 7.4% |
| United States | -3.4% | 5.7% |
| Uruguay | -6.1% | 4.4% |
| Uzbekistan | 1.9% | 7.4% |
| Vanuatu | -5.4% | 0.5% |
| Venezuela | -30.0% | -1.5% |
| Vietnam | 2.9% | 2.6% |
| West Bank and Gaza | -11.3% | 6.0% |
| Yemen | -8.5% | -2.0% |
| Zambia | -2.8% | 4.3% |
| Zimbabwe | -5.3% | 6.3% |
Ireland experienced GDP growth of 13.5% in 2021, driven largely by record-high exports. The country is home to more than 1,500 multinationals, including some of the top tech and pharma companies, due to Ireland’s competitive tax rate. The size of some of these multinationals can result in bloated GDP figures.
In South America, Chile had one of the highest GDP growth rates of 11.7%. The economic recovery was driven by one of the fastest COVID-19 vaccine rollouts in the world, which allowed the economy to almost fully reopen. Household consumption also rose thanks to fiscal support from the government and people withdrawing money from their pensions.
Meanwhile U.S. economic growth was roughly on par with the global average at 5.7%. The reasons for growth were widespread, including an increase in consumer spending, business investment, exports, and new single family home construction.
Looking Ahead
Recovering from the pandemic shutdown, almost all countries saw positive GDP growth in 2021. Some of the strongest growth was seen in countries with fully reopened economies, in-demand exports, and strong fiscal and monetary support.
Now, the world faces a new host of issues including worsening inflation and the Russia-Ukraine war. Which countries are projected to fare the best amid these challenges?
In the second part of this series, we’ll dive into predictions for GDP growth by country in 2022 and beyond.
Markets in a Minute
The Average American’s Financial Portfolio by Account Type
From retirement plans to bank accounts, we show the percentage of an American’s financial portfolio that is typically held in each account.
The Average American’s Financial Portfolio by Account Type
Where does the average American put their money? From retirement plans to banks, the typical financial portfolio includes a variety of accounts.
In this graphic from Morningstar, we explore what percentage of a person’s money is typically held within each account.
Breaking Down a Typical Financial Portfolio
People put the most money in employer retirement plans, which make up nearly two-fifths of the average financial portfolio. Bank accounts, which include checking, savings, and CDs, hold the second-largest percentage of people’s money.
| Account Type | % of Financial Portfolio |
|---|---|
| Employer retirement plan | 38% |
| Bank account | 23% |
| Brokerage/investment account | 14% |
| Traditional IRA | 10% |
| Roth IRA | 7% |
| Crypto wallet/account | 4% |
| Education savings account | 3% |
| Other | 1% |
Source: Morningstar Voice of the Investor Report 2024, based on 1,261 U.S. respondents.
Outside of employer retirement plans and bank accounts, the average American keeps nearly 40% of their money in accounts that advisors typically help manage. For instance, people also hold a large portion of their assets in investment accounts and IRAs.
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Account Insight for Advisors
Given the large focus on retirement accounts in financial portfolios, advisors can clearly communicate how they will help investors achieve their retirement goals. Notably, Americans say that funding retirement accounts is a top financial goal in the next three years (39% of people), second only to reducing debt (40%).
Americans also say that building an emergency fund is one of their financial goals (35%), which can be supported by the money they hold in bank accounts. However, it can be helpful for advisors to educate clients on the lower return potential of savings accounts and CDs. In comparison, advisors can highlight that investment or retirement accounts can hold assets with more potential for building wealth, like mutual funds or ETFs. With this knowledge in mind, clients will be better able to balance short-term and long-term financial goals.
The survey results also highlight the importance of advisors staying up to date on emerging trends and products. People hold 4% of their money in crypto accounts on average, and nearly a quarter of people said they hold crypto assets like bitcoin. Advisors who educate themselves on these assets can more effectively answer investors’ questions.
Markets in a Minute
5 Factors Linked to Higher Investor Engagement
Engaged investors review their goals often and are more involved in decisions, but which factors are tied to higher investor engagement?
5 Factors Linked to Higher Investor Engagement
Imagine two investors. One investor reviews their investment goals every quarter and actively makes decisions. The second investor hasn’t reviewed their goals in over a year and doesn’t take part in any investment decisions. Are there traits that the first, more involved investor would be more likely to have?
In this graphic from Morningstar, we explore five factors that are associated with high investor engagement.
Influences on Investor Engagement
Morningstar scores their Investor Engagement Index from a low of zero to a high of 100, which indicates full engagement. In their survey, they discovered five traits that are tied to higher average engagement levels among investors.
| Factor | Investor Engagement Index Score (Max = 100) |
|---|---|
| Financial advisor relationship | Don’t work with financial advisor: 63 |
| Work with financial advisor: 70 | |
| Sustainability alignment | No actions/alignment: 63 |
| Some/full alignment: 74 | |
| Trust in AI | Low trust: 61 |
| High trust: 74 | |
| Risk tolerance | Conservative: 62 |
| Aggressive: 76 | |
| Comfort making investment decisions | Low comfort: 42 |
| High comfort: 76 |
Morningstar’s Investor Engagement Index is equally weighted based on retail investors’ responses to seven questions: feeling informed about composition and performance of investments, frequency of investment portfolio review, involvement in investment decision-making, understanding of investment concepts and financial markets, frequency of goals review, clarity of investment strategy aligning to long-term goals, and frequency of engagement in financial education activities.
On average, people who work with financial advisors, have sustainability alignment, trust AI, and have a high risk tolerance are more engaged.
The starkest contrast was that people with high comfort making investment decisions have engagement levels that are nearly two times higher than those with low comfort. In fact, people with a high comfort level were significantly more likely to say they were knowledgeable about the composition and performance of their investments (84%) vs. those with low comfort (18%).
Personalizing Experiences Based on Engagement
Advisors can consider adjusting their approach depending on an investor’s engagement level. For example, if a client has an aggressive risk tolerance this may indicate the client is more engaged. Based on this, the advisor could check if the client would prefer more frequent portfolio reviews.
On the other hand, soft skills can play a key role for those who are less engaged. People with low comfort making investment decisions indicated that the top ways their financial advisor provides value is through optimizing for growth and risk management (62%), making them feel more secure about their financial future (38%), and offering peace of mind and relief from the stress of money management (30%).
A New Framework for Personalized Financial Portfolio Alignment
The Average American’s Financial Portfolio by Account Type
5 Factors Linked to Higher Investor Engagement
The Top 5 Reasons Clients Fire a Financial Advisor
The Top 5 Reasons Clients Hire a Financial Advisor
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