Fastest growing economies in 2026

India

The Indian economy is expected to grow by around 6.9% in 2026, according to Euromonitor International, while the EIU predicts 7.2% growth for the country in 2026. This will be the fastest growth among major economies, and the country is expected to overtake Japan in terms of nominal GDP to become the 4th largest economy in the world.

Despite the pressure of high US tariffs, growth is driven by strong private consumption, increased public investment and structural reforms, and is further supported by an improved business environment and the reorientation of supply chains.

The Indian market is the only single country market comparable in size to China, as it has a similar land area and 2 times the population of the EU.

In the longer term, the key advantages will be a young population, a growing middle class and technological innovation, although challenges remain in the areas of infrastructure, regulation and price-sensitive consumers.

Sustained real GDP growth will support wage growth and help expand the middle class. The number of high-income households will continue to grow. By 2029, India will be among the 10 Asian countries with the largest number of high-income households (those earning more than USD 50,000 per year). Since 2023, luxury and premium products have outperformed the consumer goods segment, and more households are expected to be able to afford premium products over the period 2026-2029.

The services sector will remain the main engine of economic expansion, as it is not dependent on fluctuations in external markets. Its expansion will continue to be driven by already strong areas such as:

• software services and IT
• commercial real estate
• home shop
• travel and business services
• currently underserved areas with high potential, including healthcare, tourism and education.

Within IT services, demand for digital transformation, cloud services, and data analytics will continue to grow.

In the real estate sector, which has been successful mainly at the premium and mid-range levels, the momentum will also spread to smaller cities.

The e-commerce sector will see a strong boost as the greater penetration of smartphones and the internet drives retail spending.

Vietnam

Vietnam is expected to achieve economic growth of approximately 6.3% in 2026.

The country remains heavily dependent on exports, which accounted for more than 87% of GDP in 2025. Robust export growth is supported by Vietnam's competitive advantage in manufacturing, which is the result of relatively low unit labor costs and continuous infrastructure upgrades.

Despite weaker external demand and high US tariffs, growth is supported by resilient investment.

Vietnam's advantages include a young and educated workforce, favorable trade policies, and strategic location, making it a key destination for manufacturing investment and technological development.

Global companies are increasingly including Vietnam in their supply chains as an alternative to China.

Egypt

Egypt's economic recovery is being driven by structural reforms supported by the IMF and increased foreign investment.

Economic growth is expected to increase from 4.4% in 2025 to around 5.6% in 2026, making Egypt one of the fastest growing economies in the Middle East and North Africa region.

The government is promoting development through large infrastructure projects and investments in pharmaceuticals, agriculture, the automotive industry, and renewable energy sources.

The young and large population represents significant long-term potential for consumption growth. In terms of population, Egypt boasts the largest consumer market in the Middle East and North Africa .

However, development is hampered by risks such as high levels of poverty and unemployment and the unstable security situation in the region, which may negatively affect tourism, foreign exchange inflows and traffic through the Suez Canal.

Philippines

The Philippines is expected to achieve economic growth of around 5.4% in 2026, with domestic consumption remaining the main driver, which accounted for 76% of GDP in 2025.

Growth will be supported by low interest rates and stable inflation, which are supporting household consumption and private investment, while higher US tariffs and climate risks are limiting progress. In the medium term, the country is expected to maintain solid growth, driven by a growing middle class and reforms to boost investment and productivity.

Favorable demographics and healthy economic growth will support the country's retail sector. Approximately 50% of the population is under the age of 25, ensuring a steady influx of new consumers in the coming years and driving demand for innovative products and sales channels. Growing wealth and increased urbanization will increase demand for goods in modern retail chains.

Online platforms will emerge as an important medium for transactions that appeal to tech-savvy young consumers – a trend accelerated by the Covid-19 pandemic.

Market liberalization will strengthen the participation of foreign companies in the retail sector, as they are now subject to a lower capital investment threshold and are no longer required to sell almost a third of their ownership stake to the public within eight years of starting operations.

Indonesia

Indonesia's economy is expected to grow by around 5% in 2026, boosted by a $2 billion fiscal stimulus package and monetary easing.

Despite cyclones causing damage to infrastructure in late 2025 and a potential slowdown in exports due to uncertainty in global trade, the long-term outlook remains positive.

A growing middle class, extensive infrastructure investments, and the development of digital and manufacturing capabilities place the country among the key competitors in the region.


Source: Export Window: Fastest Growing Economies in 2026 | Export Window