Fluctuations of Economic Potential of the World’s Smallest Economies from 1970 to 2019

This chapter presents an in-depth and detailed analysis of the economic potential of the world’s smallest economies over a nearly five-decade period, from 1970 to 2019. The initial stage of the analysis entailed an examination of the fluctuations in the gross domestic product (GDP) of the world’s smallest economies as a group in comparison to the global average. This was followed by an analysis of the economic potential of individual countries, first as classified by subgroups, and then a detailed examination of the 30 smallest economies with the lowest and highest dynamic growth in GDP was conducted. The changes in their GDP from 1970 were sought in historical and political events. However, on occasion, demographic shifts, cultural influences or geographical factors also precipitated abrupt declines and increases in GDP. The greater the level of economic development of a country, the less impact internal factors had and the more external factors, such as shifts in the global economy, had. This is particularly true for the most developed of the world’s smallest economies, as well as those that rely heavily on the export of mineral and agricultural products as well as tourism  and financial services.