Top 10 Largest Economies in the World
There are numerous rich nations on this planet with economies worth more than 5 trillion USD. However, just because a country is wealthy does not imply that its citizens must also be wealthy. A GDP, or gross domestic product, can be used to determine a nation’s wealth. The market value of all final goods and services produced and sold by nations during a given period is measured in terms of gross domestic product (GDP). The GDP is an important measure that helps to calculate the size of an economy.
There are various ways of calculating GDP, but the most commonly employed method involves subtracting the total value of exports from the total import value for a specific year. The GDP of various economies throughout the world fluctuates a lot because of changes in economic policies and many other factors. Even after substantial economic ups and downs, it has been seen that the actual GDP of top economies, doesn’t change much. Also, for the past many years, the top 25 economies in the world have been the same only, there are sporadic instances when a country comes up on this list. For example in the last 20 years, the first position for the largest economies in the world is occupied by the USA and second by China. And in the upcoming years, it’s hard to see any changes in these positions. However many countries have also made it to the top of the list from the bottom place in the table like India, and Indonesia.
The United States of America has been at the top of the list for a long time as the world’s largest economy. Business services, finance, real estate, professional services, insurance, and the healthcare industry are some of the major contributors to the US GDP. One of the primary reasons that the United States of America has the world’s largest economy is the country’s relaxed business policies and substantial foreign direct investment. Additionally, it maintains its position thanks to its technological dominance and geopolitical power.
- 2021 GDP Growth: 5.7%
- 2021 Nominal GDP: $ 23.0 Trillion
- 2021 PPP Adjusted GDP: $ 23.0 Trillion
- 2021 Nominal GDP Per Capita: $ 69,287
In terms of nominal GDP, China stands out as the world’s second-largest economy and is the most significant in terms of Purchasing Power Parity (PPP). China has the largest workforce because it is the world’s most populous city, which helps it meet high production demands and boost GDP. China entered this position just four decades ago, but it still holds it today. At first, the primary sector that contributed the most to China’s GDP was the agricultural sector. However, in recent years, China’s economic expansion has been multiplied by multiples thanks to advances in AI (artificial intelligence).
- 2021 GDP Growth: 8.1%
- 2021 Nominal GDP: $ 17.73 Trillion
- 2021 PPP Adjusted GDP: $ 27.31 Trillion
- 2021 Nominal GDP Per Capita: $ 12,556
Japan is the third-largest economy in the world because it is regarded as one of the most technologically and innovatively advanced nations. The Second World War, the Tsunami, and the Great Depression all continued to impact Japan’s economy. Japan, on the other hand, quickly recovered and reestablished its economy. Japan has a high deficiency of natural resources, yet, Japan is contending very well with different countries concerning the Gross domestic product.
- 2021 GDP Growth: 1.6%
- 2021 Nominal GDP: $ 4.94 Trillion
- 2021 PPP Adjusted GDP: $ 5.40 Trillion
- 2021 Nominal GDP Per Capita: $ 39,285
Germany is the fourth-largest economy in the world and the largest economy in Europe thanks to its position as the world’s largest auto exporter for many years. Over the course of many decades, Germany has dominated the automotive, chemical, and machining industries. It also has the world’s largest skilled workforce. The low fertility rate in Germany is turning into a significant snag to monetary development and furthermore bringing about labor force consumption.
- 2021 GDP Growth: 2.9%
- 2021 Nominal GDP: $ 4.22 Trillion
- 2021 PPP Adjusted GDP: $ 4.82 Trillion
- 2021 Nominal GDP Per Capita: $ 50,801
The United Kingdom
The United Kingdom ranks fifth among the world’s largest economies. The insurance, financial, and business service sectors, in particular, make up the majority of Europe’s service sector’s GDP. The majority of the UK’s trade is with European nations, but this has always been contentious, and the UK is no longer be a member of the EU (European Union) after 2020. Nonetheless, trade negotiations are ongoing between the two nations.
- 2021 GDP Growth: 7.4%
- 2021 Nominal GDP: $ 3.19 Trillion
- 2021 PPP Adjusted GDP: $ 3.34 Trillion
- 2021 Nominal GDP Per Capita: $ 47,334
In terms of population, India is the second largest populated nation after China, and thus even after being the 6th largest economy in the world, has a very low per capita GDP of only $2,227. Many sectors contribute together to the GDP of India, like the service sector, industry, business sector, IT, etc. but the agricultural sector has the highest contribution to the GDP of India. India is growing at a rapid pace and the liberalization of India’s economy during the 90’s escalated its economic growth to the next level.
- 2021 GDP Growth: 8.9%
- 2021 Nominal GDP: $ 3.17 Trillion
- 2021 PPP Adjusted GDP: $ 10.22 Trillion
- 2021 Nominal GDP Per Capita: $ 2,277
France is one of the favorite locations of tourists and this is the reason why the tourism sector has the highest contribution to its GDP. France stands out as the 7th largest economy in the world and the semi-private business and industries are some of the other important sectors contributing to its GDP.
- 2021 GDP Growth: 7.0%
- 2021 Nominal GDP: $ 2.94 Trillion
- 2021 PPP Adjusted GDP: $ 3.42 Trillion
- 2021 Nominal GDP Per Capita: $ 43,518
Italy’s economy is divided into many regions and each region has a different amount of contribution to its GDP. Italy is the 8th largest economy in the world, Italy’s private business has the highest contribution to its GDP, and it has most of the luxury apparel brands in the world.
- 2021 GDP Growth: 6.6%
- 2021 Nominal GDP: $ 2.10 Trillion
- 2021 PPP Adjusted GDP: $ 2.71 Trillion
- 2021 Nominal GDP Per Capita: $ 35,551
Canada stands out as the third-largest energy-rich nation in the world, with plenty of oil reservoirs making it the 9th largest economy in the world. Also, the manufacturing sector of Canada is a highly contributing sector to its GDP. The free trade policies of Canada with the United States of America helped a lot Canada to boost its economic growth.
- 2021 GDP Growth: 4.6%
- 2021 Nominal GDP: $ 1.99 Trillion
- 2021 PPP Adjusted GDP: $ 1.99 Trillion
- 2021 Nominal GDP Per Capita: $ 52,051
South Korea is the 10th largest economy in the world because South Korea is one of the most technologically advanced nations with some of the major tech giants such as Samsung and LG. The private sector industry and the service sector are the highest contributing sector to its economy.
- 2021 GDP Growth: 4.0%
- 2021 Nominal GDP: $ 1.80 Trillion
- 2021 PPP Adjusted GDP: $ 2.43 Trillion
- 2021 Nominal GDP Per Capita: $ 34.757
There are many ups and downs in the economy, but the one that quickly recovers is more likely to keep growing. Additionally, the economic growth of a nation is significantly influenced by government economic policies. Numerous countries on the list rose to prominence from significantly lower positions. As a result, countries are able to maintain and advance in the rankings when their economies continue to expand.
FAQs Related to 10 Largest Economies
1Q. Which country has the Strongest Economy?
Ans: At present, the United States of America is the strongest economy in the world with a $ 20.95 trillion economy.
2Q. Which are the Top 5 Economies in the world?
Ans: The United States, China, Japan, Germany, and the United Kingdom are the top 5 economies in the world.
3Q. Which country will be the Richest in 2050?
Ans: The recent economic trends suggest that China will be the richest economy in the world by 2050.
Please Login to comment...