Global Economic Growth Analysis
Understanding the Drivers of Economic Development Worldwide (2000–2023)
Investment Drives Economic Growth
Top Performing Countries (2023)
Summary
This comprehensive study analyzes the key determinants of economic growth across more than 180 countries from 2000 to 2023, using World Bank’s World Development Indicators. Our analysis reveals that investment (gross capital formation) is the most significant driver of GDP growth, followed by trade openness and macroeconomic stability.
180+
Countries Analyzed
24
Years of Data
0.69
Model R-squared
Key Findings
Investment Drives Growth: A 1 percentage point increase in gross capital formation (as % of GDP) is associated with a 0.2-0.3 percentage point increase in GDP growth.
Trade Openness Matters: Countries with higher export shares consistently experience faster economic growth across all regions and time periods.
Regional Disparities: East Asia & Pacific and Europe & Central Asia lead in investment rates, while Sub-Saharan Africa faces significant development challenges.
Employment Impact: Higher unemployment rates consistently correlate with lower GDP growth, highlighting the importance of labor market policies.