The economy of a country is determined by the GDP(Gross Domestic Product) of the country. If an economy is in good shape, GDP growth expands, Or if an economy is in bad shape, GDP growth contracts.
What is GDP?
We must have seen this term being used very frequently in media to talk about the country’s economic health let’s understand what this GDP number tells us and how it is calculated GDP. And with this GDP information, we will decide the Top 10 Largest Economies In The World.
GDP means gross domestic product it is the value of all final goods and services produced within a country each year. The measurements of GDP involve counting the production of millions of different goods and services smartphones, cars, music downloads, computers, steel, fruits, college education, and all other new goods and services produced in the current year and summing them into total value in money.
Goods & Services product within a country does not consider the products that the country imports from some other country so a car manufacturer in the country and exported to other countries would be included in the GDP but the bottle of wine manufactured in other countries and imported in the country would not be included in the calculation of GDP.
GDP calculation only considers the product that is produced in the year of calculation so if a car is produced and sold for USD 5000 it would be included in the GDP.
GDP by Wikipedia.
How GDP Is Calculated?
GDP = Consumption+ Investment + Government spending + net export
1. Consumption:- Consumption is another way of saying consumer spending. It’s money or that we spend on physical goods, like coffee, tea and on services, like haircuts.
2. Investment:- Investment measures how much business spends on things like buildings, land, and equipment. It also includes a major consumer investment like buying a home Investment can take a hit when the economy is suffering.
3. The government spends:- This is the money local, state and the national government spends on things like roads, schools, and defense.
4. Net exports (import – exports):- A lot of countries have negative net exports, meaning they bring in more products than they send out. The UK imports around $1 billion worth coffee every year but only exports around $315 million.
This is how GDP is calculated.
Let’s start our countdown of Top 10 Largest Economies In The World.
Largest Economies In The World (GDP Wise)
1. United States
- U.S. Nominal GDP: $21.44 trillion
- U.S. GDP (PPP):- $21.44 trillion
The US is known as the economic superpower of the world. In 2019, the nominal GDP of the USA is expected to exceed USD 21 trillion. The United States economy is still much larger than China. The US economy holds 20% of the global output.
The United States has the most powerful, technologically economy in the world, and its firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment. The economy of the US is projected to grow to $24.88 trillion by 2023.
Nominal GDP rank:- 1st
GDP (purchasing power parity) rank:- 2nd (according to IMF and World Bank)
The United States Comes On the 1st place of Top 10 Largest Economies In The World list with a GDP of $21.44 trillion.
- China Nominal GDP: $14.14 trillion
- China GDP (PPP): $27.31 trillion
China has acquired exponential growth over the past years. China is often widely considered as the “world’s factory” and exponential hub of the world. But back in 1980 china was the seventh-largest economy.
The nominal GDP of china in 2019 is USD 14.14 trillion and according to GDP(PPP(Purchasing power parity)), China is ranked first among the largest economies. China has seen economic growth averaging 10% annually over the year.
China has announced its economic figures for 2019, and GDP growth finished at 6.1. Regarding the per capita income of China, it seems to be low because of China’s huge population brings down its GDP per capita to $10,100.
Nominal GDP rank:- 2nd
GDP (purchasing power parity) rank:- 1st (according to IMF and World Bank)
China Comes On the 2nd place of the Top 10 Largest Economies In The World list with a GDP of $14.14 trillion.
- Japan Nominal GDP:- $5.15 trillion
- Japan GDP (PPP):- $5.75 trillion
Japan is the 3rd largest economy in the world, with a GDP of USD 5 trillion in 2019. Japan has the best technology in the world it’s ranked number one on the list of advanced technological countries.
The financial crisis of 2008 swayed the Japanese economy. Since then it’s been a challenging time for its economy. When the economy was in recovering shape, it suffered a massive earthquake that hit the country socially and economically.
Based on nominal GDP, the Japanese economy ranks third in 2019 with a GDP of USD 5.2 trillion. Although 3-4 decades ago japan’s economy was growing rapidly than other big economies. Japan’s economy had not been impressive after the 1990s. Even though over the past years Japan has been doing its best to grow its economy.
Nominal GDP rank:- 3rd
GDP (purchasing power parity) rank:- 4th (according to IMF and world bank)
Japan Comes On the 3rd place of the Top 10 Largest Economies In The World list with a GDP of $5.15 trillion.
- Germany Nominal GDP: $3.86 trillion
- Germany GDP (PPP): $4.44 trillion
The German economy has its strong focus on exports to thank for its competitiveness and global networking. Germany is a large exporting hub. Germany ranked 3rd among the largest exporters after China and the US.
In Car-making, mechanical and plant engineering, the chemicals industry, and medical technology, exports account for well over half of total sales. Germany is often considered as a “Mechanical Hub“. With a nominal GDP of USD 4.2 trillion based on the forecasts for 2019, Germany ranked 4th place among the top 10 economies of the world.
Nominal GDP rank:- 4th
GDP (purchasing power parity) rank:- 5th (according to IMF and World Bank)
Germany Comes On the 4th place of the Top 10 Largest Economies In The World list with a GDP of $3.86 trillion.
- India Nominal GDP: $2.94 trillion
- India GDP (PPP): $10.51 trillion
India is the fastest-growing economy in the world, with a nominal GDP of India 2.94 trillion, India ranked 5th among the large economies. India has become the largest economy in the world in 2019, overtaking the UK and France.
But regarding the per capita income of India as China, India’s population brings down its per capita income to $2,170. Back in 1980, India’s economy was the 13th in the list of economies. It’s growing rapidly from the past 1-2 decades approx. 7-8% yearly.
The contribution of India’s agricultural sector has declined to around 17%, it is way higher in comparison to the western nations.
Nominal GDP rank:- 5th
GDP (purchasing power parity) rank:- 3rd(According to IMF and World Bank)
India Comes On the 5th place of Top 10 Largest Economies In The World list and GDP of India is $2.94 trillion.
6. United Kingdom
- U.K. Nominal GDP: $2.83 trillion
- U.K. GDP (PPP): $3.04 trillion
United kingdom is the sixth-largest economy in the world United Kingdom, with a $2.83 trillion GDP is the 6th largest economy in the world. The United Kingdom consists of four countries are England, Scotland, Wales, and Northern Ireland.
When compared in terms of GDP purchasing-power-parity, U.K. slips to the ninth spot. In terms of GDP per capita, the UK ranked 23rd which is USD 42,558.
The average annual growth of the UK’s GDP between 1999 and 2008 was 2.8%. In the next year, the growth is most likely to slow down due to a dip in private consumption. In 2019 the average growth of GDP is 1.4%.
Nominal GDP rank:- 6th
GDP (purchasing power parity) rank:- 9th (according to IMF and World Bank)
United Kingdom Comes On the 6th place of Top 10 Largest Economies In The World list with a GDP of $2.83 trillion.
- France Nominal GDP: $2.71 trillion
- France GDP (PPP): $2.96 trillion
France is the third-largest europian country and ranked 7th among the largest economies in the world with a nominal GDP of USD 2.71 trillion. The best fact about France is that it’s the most visited country.
France’s diversified economy is leading by tourism, manufacturing, and pharmaceuticals. France’s imports of goods play a vital role in GDP with The total value of exports and imports of goods and services equals 63.4 percent of GDP.
Nominal GDP rank:- 7th
GDP (purchasing power parity) rank:- 10th (according to IMF and World Bank)
France Comes On the 7th place of Top 10 Largest Economies In The World list with a GDP of $2.71 trillion.
- Italy Nominal GDP: $1.99 trillion
- Italy GDP (PPP): $2.40 trillion
Italy is the 8th largest economy in the world, with a nominal GDP of USD 1.99 trillion. The major sources of income in Italy include the production of machinery, chemicals, automobiles, and textiles.
Fashion design and tourism play a vital role in the economy of Italy as well as The agriculture sector including wine production continues min industry to be strong. Italy has a per capita GDP of USD 34,260.34.
Nominal GDP rank:- 8th
GDP (purchasing power parity) rank:- 14th (according to IMF)
Italy Comes On the 8th Place of Top 10 Largest Economies In The World list with a GDP of $1.99 trillion.
- Brazil Nominal GDP: $1.85 trillion
- Brazil GDP (PPP): $3.37 trillion
With nominal GDP USD, 1.85 trillion Brazil ranked 9th among the largest economies in the world. Brazil is part of the BRICS, along with Russia, India, China, and South Africa it means The countries currently represent about 25% of the world’s landmass and 40% of the world’s population.
The GDP per capita of Brazil is USD 8,967.66. Before the global economic crisis in 2009, Brazil was showing a consistent 3.4% GDP growth year on year. After a brief time in 2009, Brazil’s economy rebounded in the following year recording a 7.5% growth.
Nominal GDP rank:- 9th
GDP (purchasing power parity) rank:- 8th (according to IMF and World Bank)
Italy Comes On the 9th place of the Top 10 Largest Economies In The World list with a GDP of $1.85 trillion.
- Canada Nominal GDP: $1.73 trillion
- Canada GDP (PPP): $1.84 trillion
Canada’s nominal GDP is USD 1.73 which makes Canada 10th among the biggest economies in the world. Canada’s combined exports and imports ranked 10th among all nations.
Agriculture, energy, forestry, and mining exports, machinery, education, equipment, automotive products play a vital role in the economy of Canada.
Nominal GDP rank:- 10th
GDP (purchasing power parity) rank:- 16th (according to IMF)
Canada Comes On the 10th place of the Top 10 Largest Economies In The World list with a GDP of $1.73 trillion.
This is the list of Top 10 Largest Economies In The World. If you want to know more TOP 10 list check out Top 10 Counts
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