1.2 Increasing Energy Demand

1.2 Increasing Energy Demand ksc17

The energy needs of most advanced economies in the Western world are increasing at a modest level. However, in some developing economies, where the economy is booming, energy demands are increasing dramatically, e.g., in India and several African countries. The figure below shows the latest gross domestic product (GDP) growth rate of the countries of the world in 2025. While advanced economies had a 1.7% annual percent change in real GDP growth, emerging and developing Asia had a 4.5% annual percent change in real GDP growth, with India having a 6.2% annual percent change in real GDP growth. Emerging and developing economies accounted for over 80% of global energy demand growth. According to the IEA's Global Energy Review 2025, global electricity consumption increased by approximately 1,100 terawatt-hours (TWh) in 2024, more than double the annual average increase over the past decade. Currently, global energy consumption is growing at around 1-2% per year.  This rate is faster than the average rate over the past decade. If many third-world countries were to dramatically increase their standard of living, there are estimates that worldwide energy consumption would double. But where would that energy come from, particularly since there aren't huge stockpiles of crude oil sitting around? Petroleum cannot supply it all, and neither can natural gas or coal.

World Map of Real GDP Growth, explained in detail in text description.

World Map of Real GDP Growth

The image is a world map visualization titled "IMF DataMapper", which displays Real GDP growth (Annual percent change) for the year 2024 across various countries. It uses a color-coded legend to represent different ranges of GDP growth rates:

  • Dark green: Countries with 6% or more GDP growth.
  • Medium green: Countries with 3% to 6% GDP growth.
  • Light green: Countries with 0% to 3% GDP growth.
  • Yellow: Countries with 0% to -3% GDP growth (i.e., slight economic contraction).
  • Orange: Countries with less than -3% GDP growth (i.e., significant economic contraction).
  • Grey: Countries with no available data.

6% or more (Dark Green)

These countries are projected to have robust growth:

  • Several countries in Sub-Saharan Africa

  • Parts of Southeast Asia and Central Asia

3% – 6% (Medium Green)

These countries are projected to have moderate to high growth:

  • Most of North America and South America
  • Large parts of Africa
  • Eastern Europe
  • Most of Asia, including India

0% – 3% (Light Green)

These countries are expected to see modest economic growth:

  • United States
  • Canada
  • Western Europe
  • Japan
  • Australia
  • Some parts of Latin America
  • Some parts of the Middle East

0% – (-3%) (Yellow)

These countries are projected to experience a slight economic contraction:

  • Mexico
  • Venezuela

Less than -3% (Orange)

These countries are expected to face significant economic decline:

  • Haiti

No Data (Grey)

No economic data available for:

• Greenland

Credit: IMF DataMapper, World Economic Outlook