Here we take a look at the Largest Economies in the World at the moment. Our picks on the World’s Largest Economies are based on GDP per capita ranking.
Economy describes a system of production, distribution, and consumption. A clear indication of these lies in the ability of a country to produce, distribute and utilize the available resources at their disposal. With proper evaluation of the various countries and their economic capabilities, it is evident that they do not rank equally on the economic chat.
There are certain determinant to a country’s high or low economic standard and it is rated as follows;
What is GDP? Gross Domestic Product (GDP); this reflects the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period. It is calculated in an annual base.
- Gross domestic product is further evaluated below to reflect its different dimensions.
- Nominal GDP = Gross domestic product, current prices, U.S. dollars
- GDP based on PPP = Gross domestic product, current prices, purchasing power parity, international dollars
- Gross domestic product per capita, current prices, U.S. dollars
- Gross domestic product based on purchasing-power-parity (PPP) share of world total, percent
The analysis given below reveals that these economies are the engine of growth, commanding a majority of the global wealth. The nominal GDP of the top 10 economies adds up to about 66% of the world’s economy, while the top 20 economies contribute almost 79%.1 The remaining 173 countries together constitute less than one-fourth to the world’s economy.
The 173 countries outside the top 20 make up less than a fourth of the total global economy.
Here are the World’s Largest Economies by GDP Ranking
1. Unites States U.S. Nominal GDP: $21.44 trillion – U.S. GDP (PPP): $21.44 trillion
2. China China Nominal GDP: $14.14 trillion – China GDP (PPP): $27.31 trillion
3. Japan GDP: $5.15 trillion- Japan GDP (PPP): $5.75 trillion, GDP per capita is $40,850
4. Germany Germany Nominal GDP: $3.86 trillion – Germany GDP (PPP): $4.44 trillion
5. India India Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion
6. United kingdom U.K. Nominal GDP: $2.83 trillion – U.K. GDP (PPP): $3.04 trillion
7. France France Nominal GDP: $2.71 trillion – France GDP (PPP): $2.96 trillion
8. Italy Italy Nominal GDP: $1.99 trillion – Italy GDP (PPP): $2.40 trillion
9. Brazil Brazil Nominal GDP: $1.85 trillion – Brazil GDP (PPP): $3.37 trillion
10. Canada Canada Nominal GDP: $1.73 trillion – Canada GDP (PPP): $1.84 trillion
11. Russia Russia Nominal GDP: $1.64 trillion – Russia GDP (PPP): $4.21 trillion
12. South Korea South Korea Nominal GDP: $1.63 trillion – South Korea GDP (PPP): $2.14 trillion
13. Spain Spain Nominal GDP: $1.4 trillion – Spain GDP (PPP): $1.86 trillion
14. Australia Australia Nominal GDP: $1.38 trillion – Australia GDP (PPP): $1.32 trillion
15. Mexico Mexico Nominal GDP: $1.27 trillion – Mexico GDP (PPP): $2.57 trillion
16. Indonesia Nominal GDP: $1.11 trillion – Indonesia GDP (PPP): $3.50 trillion
17. Netherlands Netherlands Nominal GDP: $902.36 billion – Netherlands GDP (PPP): $969.23 billion
18. Saudi Arabia Saudi Arabia Nominal GDP: $779.29 billion – Saudi Arabia GDP (PPP): $1.86 trillion
19. Turkey and, Turkey Nominal GDP: $743.71 billion – Turkey GDP (PPP): $2.29 trillion
20. Switzerland Switzerland Nominal GDP: $715.36 billion – Switzerland GDP (PPP): $548.48 billion
1. United States
U.S. Nominal GDP: $21.44 trillion – U.S. GDP (PPP): $21.44 trillion
The U.S. remains the world’s largest economy and this has been effective since 1971. The current size of the U.S. economy is estimated at $22.32 trillion in nominal terms. This is based on the previous analysis and the expected developments over the years. The United States is often seen as an economic superpower and that’s because the economy constitutes almost a quarter of the global economy, backed by advanced infrastructure, technology, and an abundance of natural resources.
When the economies are evaluated based on purchasing power parity, the United States loses its top spot to its close competitor China. In 2019, the U.S. economy, in terms of GDP (PPP), was at $21.44 trillion, while the Chinese economy was measured at $27.31 trillion. The gap between the size of the two economies in terms of nominal GDP is expected to lessen by 2023; the U.S. economy is projected to grow to $24.88 trillion by 2023, followed closely by China at $19.41 trillion.
China Nominal GDP: $14.14 trillion – China GDP (PPP): $27.31 trillion
China is the second-largest economy of the world. It the unique competitor of the United States of America. China has experienced massive growth over the years in terms of innovation and exportation of the manufacture products and it is currently nicknamed as the “world factory”. However, over the years, the role of services has gradually increased and that of manufacturing as a contributor to GDP has declined relatively. Back in 1980, China was the seventh-largest economy, with a GDP of $305.35 billion, while the size of the U.S. then was $2.86 trillion. Since it initiated market reforms in 1978, the Asian giant has seen economic growth averaging 10% annually. In recent years, the pace of growth has slowed, although it remains high in comparison to its peer nations.
The IMF projects a growth of 5.8% in 2020, which would sober down to around 5.6% by 2023. Over the years, the difference in the size of the Chinese and the U.S. economy has been shrinking rapidly. In 2018, the Chinese GDP in nominal terms stood at $13.37 trillion, lower than the U.S. by $7.21 trillion. In 2020, the gap is expected to reduce to $7.05 trillion, and by 2023, the difference would be $5.47 trillion. In terms of GDP in PPP, China is the largest economy, with a GDP (PPP) of $25.27 trillion. By 2023, China’s GDP (PPP) would be $36.99 trillion. China’s huge population brings down its GDP per capita to $10,100 (seventieth position).
Japan Nominal GDP: $5.15 trillion- Japan GDP (PPP): $5.75 trillion, GDP per capita is $40,850
Japan constitutes the first three largest economies in the world, with its GDP crossing the $5 trillion mark in 2019. Japan experience the financial crisis of 2008 which watered down the economy and it is still trying to overcome the financial challenge for a perfect economic stand. Aside from the financial crisis which affected the Japanese economy, japan also suffered an earthquake which posed a setback to the economy.
Germany Nominal GDP: $3.86 trillion – Germany GDP (PPP): $4.44 trillion
Germany constitutes the fourth of the world’s largest economy as well as Europe’s largest and strongest economy. It has the nominal GDP of $4 trillion. The size of its GDP in terms of purchasing power parity is $4.44 trillion, while its GDP per capita is $46,560 (18th place). Germany once assumed the third-largest economy in terms of nominal terms in 1980, with a GDP of $850.47 billion. Germany’s economy majors on capital goods export. It is the largest economy in Europe right now.
India Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion
India constitutes the fifth largest and one of the fastest-growing economies with a nominal GDP of $2.94 trillion overtaking the United Kingdom and France. The country ranks third when GDP is compared in terms of purchasing power parity at $11.33 trillion. When it comes to calculating GDP per capita, India’s high population drags its nominal GDP per capita down to $2,170. The Indian economy was just $189.438 billion in 1980, ranking 13th on the list globally.
6. United Kingdom
U.K. Nominal GDP: $2.83 trillion – U.K. GDP (PPP): $3.04 trillion
The United Kingdom constitutes the sixth largest and one of the fastest-growing economies in the world, with a $2.83 trillion GDP. When evaluated in terms of GDP purchasing-power-parity. U.K economy drops to the ninth spot with a GDP-PPP of $3.04 trillion. It ranks 23rd in terms of GDP per capita, which is $42,558. Its nominal GDP is estimated to remain at $2.83 trillion during 2019, but its ranking is expected to slide to the seventh spot by 2023 with its GDP of $3.27 trillion.
The Uk economy is characterized by the following; services sector, which contributes more than 75% of its GDP, with manufacturing the second prominent segment, followed by agriculture. Although agriculture is not a major contributor to its GDP, 60% of the U.K.’s food needs are produced domestically, even though less than 2% of its labor force is employed in the sector.
France Nominal GDP: $2.71 trillion – France GDP (PPP): $2.96 trillion
France, constitutes the seventh largest and one of the fastest-growing economies in the world, as well as the third-largest economy of Europe and t, with a nominal GDP of $2.78 trillion. Its GDP in terms of purchasing power parity is around $2.96 trillion. The country offers a high standard of living to its people as reflected in its GDP per capita of $42,877.56. In recent years, economic growth has slowed, resulting in unemployment that has placed immense pressure on the government to reboot the economy. The World Bank has recorded unemployment rates at 10% during 2014, 2015, and 2016. During 2017, it declined to 9.681%.
France’s economy majors on tourism, which renders France as the most visited country in the world In addition to tourism, agricultural production, and exportation. The manufacturing sector is primarily dominated by the chemical industry, automotive, and armament industries.
Italy Nominal GDP: $1.99 trillion – Italy GDP (PPP): $2.40 trillion
Italy constitutes the eighth largest and one of the fastest-growing economies of the world with a nominal GDP of $2.07 trillion. Its economy is expected to expand to $2.26 trillion by 2023. In terms of GDP (PPP), its economy is worth $2.40 trillion and it has a per capita GDP of $34,260.34
Brazil Nominal GDP: $1.85 trillion – Brazil GDP (PPP): $3.37 trillion
Brazil constitutes the ninth largest and one of the fastest-growing economies in the world with a nominal GDP of $1.87 trillion. It is the most populated nation in Latin America.
During 2006–2010, the nation grew at an average 4.5%, moderating to around 2.8% in 2011–2013. By 2014, it was barely growing at 0.1%. In 2016, Brazil contracted by 3.5% before rebounding by 1% in 2017. IMF projects the economic growth to revive to 2.5% by 2019. Brazil is part of the BRICS, BRICS is the acronym for an association of five major emerging national economies which is made up of Brazil, Russia, India, China, and South Africa. The country has a GDP (PPP) of $3.37 trillion and a GDP per capita of $8,967.66.
Canada Nominal GDP: $1.73 trillion – Canada GDP (PPP): $1.84 trillion
Canada rounds up the top 10 economies in the world and one of the fastest-growing economies in the world after its displacement of Russia displaced Russia in 2015. Canada’s nominal GDP is currently estimated at and $1.74 trillion in 2019 and $2.13 trillion by 2023. Its per capita GDP of $46,260.71 is ranked 20th globally, while it’s GDP of $1.84 trillion in terms of PPP pulls it down to the 17th spot.
The country has contained its level of unemployment and it’s likely to further shrink. While services are the major sector, manufacturing is the cornerstone of the economy, with 68% of its exports constituting of merchandise exports. Canada is laying a lot of emphasis on manufacturing, which is crucial to its future economic growth. Canada registered a growth of 3% in 2017 vis-à-vis 1.4% in 2016 and is expected to grow 2% during 2018 and 2019.
Russia Nominal GDP: $1.64 trillion – Russia GDP (PPP): $4.21 trillion
Russia constitutes the eleventh largest and one of the fastest-growing economies in the world with a nominal GDP of $1.63 trillion and the world’s largest landmass. Russia moves up the ladder to the sixth spot for rankings, with a $4.21 trillion GDP based on PPP.
The 1990s were a rough period for its economy since it inherited a devastated industrial and agricultural sector along with the fundamentals of a centrally planned economy. During the next decade, Russia witnessed growth at a healthy pace of 7%. However, this growth was led by the commodity boom.
Before now, Russia’s economy witnessed total dependence on oil, but later drifted to commodity. Russia also has the industrial and agricultural sector for its economic advancement.
12. South Korea
South Korea Nominal GDP: $1.63 trillion – South Korea GDP (PPP): $2.14 trillion
South Korea constitutes the twelfth largest and one of the fastest-growing economies in the world with a nominal GDP of $1.62 trillion economies. It is the home of multinational companies like multinationals like Samsung and Hyundai. South Korea has made plausible progress in the past couple of decades to establish itself as a hi-tech, industrialized nation.
Over the past four decades, South Korea has witnessed plausible economic growth and global integration to become an industrialized economy. During the 1960s, its GDP per capita was among the poorer countries in the world, which is now at the 29th spot with $31,345.62. Its GDP (PPP) is at $2.14 trillion. South Korea entered the trillion-dollar club in 2004, propelled by international trade and industrialization. It is among the top exporters in the world and presents great investment opportunities, reflected in its ease of doing business ranking.
Spain Nominal GDP: $1.4 trillion – Spain GDP (PPP): $1.86 trillion
Spain constitutes the thirteenth largest and one of the fastest-growing economies in the world with $1.4 trillion Spain is the fourth-largest economy in the eurozone. The country, with a population of 46.6 million, has witnessed a long recessionary period (second quarter of 2008 until the third quarter of 2013) and is slowing returning to health on the back of record tourism and exports, along with a revival in domestic consumption.
Spain became the second most visited country in the world topping the chat against the United Kingdom with a massive influx of inbound tourists.
Spain’s economy is characterized by the following; agriculture, production, and exportation of olive oil, pork and wine. Other prominent industrial sectors include; chemicals, pharmaceuticals, and industrial machinery.
Australia Nominal GDP: $1.38 trillion – Australia GDP (PPP): $1.32 trillion
Australia constitutes the fourteenth largest and one of the fastest-growing economies in the world with a nominal GDP of $1.42 trillion. The economy has grown at a healthy pace for the past two decades on the back of low unemployment, low public debt and inflation.
Australia economy is characterized by robust exports, a strong service sector, and a stable financial system. Australia is also a land rich in natural resources, as well as a major exporter of energy and food.
Australia also operates with the following sectors; agriculture and industry contribute which form about 4% and 26%, respectively. The service sector, which engages 75% of its employed population and contributes 70% to its GDP. It is estimated that the economy of Australia will be close to the $1.7 trillion mark by 2023 and its GDP based on PPP, which is currently at $1.32 trillion, will be nearing $1.65 trillion during the same time period. Australia ranks 11th on the measure in terms of GDP per capita, with $56,351.58 in 2018.
Mexico Nominal GDP: $1.27 trillion – Mexico GDP (PPP): $2.57 trillion
Mexico constitutes the fifteenth largest and one of the fastest-growing economies in the world with a nominal GDP of $1.22 trillion, while it’s GDP in terms of PPP is $2.57 trillion. Mexico tops the chart as the second-largest economy in Latin America. It GDP is expected to increase to $1.50 trillion and $3.18 trillion, respectively, by 2023. Back in 1980, Mexico was the 10th-largest economy, with a nominal GDP of $228.6 billion.
The Mexican economy is characterized by the following; agriculture which contributes a little percentage to economic growth. Industry and services contribute around 33% and 63% to its output. Automotive, oil and electronics are among the developed industries, while financial services and tourism are prominent contributors within services.
Nominal GDP: $1.11 trillion – Indonesia GDP (PPP): $3.50 trillion
Indonesia constitutes the sixteenth largest and one of the fastest-growing economies in the world with a nominal GDP of $1.02 trillion, as well as the largest economy in Southeast Asia. The Indonesian economy has shown tremendous progress over the last two decades. It was a victim of the Asian financial crisis in 1997. However, it has charted impressive growth ever since.
Indonesia forms part of the trillion-dollar club, with a nominal GDP of $1.02 trillion. With a major emphasis on poverty eradication. Its GDP per capita at $3,871 is way higher than it was in 2000 at $857.
Indonesia tops the chart as the fourth most populated nation, is the seventh-largest economy, with a $3.50 trillion GDP in terms of purchasing power parity.
Indonesia’s economy is characterized by the following sectors; agriculture which contributes about 14% to its GDP. Industry and services which contributes approximately 43% respectively to its output.
Netherlands Nominal GDP: $902.36 billion – Netherlands GDP (PPP): $969.23 billion
The Netherlands constitutes the seventeenth-largest economy and one of the fast-growing economy of the world with a GDP of $189.49 billion. Netherland forms the sixth-largest economy in the European Union. Back in 1980, the Netherlands was the 12th-largest economy globally. Today, the country has a nominal GDP of $912.90 billion and a GDP-PPP of $969.23 billion. It ranks 13th on the basis of per capita income, with a GDP per capita of $53,106.38.
The Netherlands economy is characterized by natural resources, booming tourism, and sound industries like food processing, chemicals, electrical machinery, and petroleum refining. The Netherlands can boast of its highly mechanized, highly productive agricultural sector, which makes it among the top agricultural exporters globally. Despite its small landmass, the Netherlands is a major player in the world’s trade.
18. Saudi Arabia
Saudi Arabia Nominal GDP: $779.29 billion – Saudi Arabia GDP (PPP): $1.86 trillion
Saudi Arabia constitutes the eighteenth largest and one of the fastest-growing economies in the world. Saudi Arabia operates an oil-based economy and tops the chart as the largest exporter of petroleum with the oil and gas sectors constituting about 50% of its GDP and 70% of its export earnings. Saudi Arabia is rich in natural resources like natural gas, iron ore, gold, and copper.
The country possesses around 18% of the world’s proven petroleum reserves The economy showed recovery from the oil shock in 2016 with a 1.7% growth. In 2017, it incurred a huge budget deficit, financed by foreign reserves and bond sales. The country is looking to strengthen its non-oil economy in order to expand its economy and tackle the problem of unemployment.
Turkey Nominal GDP: $743.71 billion – Turkey GDP (PPP): $2.29 trillion
Turkey constitutes the nineteenth largest and one of the fastest-growing economies in the world with a total of $766.43 billion, the economy is projected to join the trillion-dollar club by 2023, while its GDP-PPP will reach $2.78 trillion that same year.
Turkey’s economy is characterized by industry and services and has witnessed macroeconomic and fiscal stability, while its employment and income levels witnessed an increase. The economy registered a 7.4% growth in 2017. However, it is projected to soften to 4.2% in 2018 amid rising external debt, depreciating currency, rising inflation, and unemployment.
Switzerland Nominal GDP: $715.36 billion – Switzerland GDP (PPP): $548.48 billion
Switzerland constitutes the twentieth-largest and one of the fastest-growing economies in the world with a nominal GDP of $703.75 billion as well as the world’s most stable market economy. The country offers a very high standard of living for its people, represented by the GDP per capita of $82,950.28, which is only behind Luxembourg.
Switzerland’s economy is characterized by the following sectors; a booming tourism industry, a strong financial sector, and the Agricultural sector which contributes about 1% to its GDP. Switzerland has a tradition of industry, especially the clock and watches industry and pharmaceuticals. The country has a highly skilled workforce and low unemployment (3%). The country’s economy benefits from its stable political system, sound infrastructure, and favorable tax rates. In recent years, its growth rate has flown between 1–1.5%.