In recent decades, countries like China have grown in terms of GDP as they have modernized. For many years, China was one of the fastest growing economies in the world and as a result of the growth, China is now the second largest economy in terms of GDP. Indonesia with a GPD of $1.31 trillion in 2022 is the biggest economy in southeast Asia and one of the emerging market economies. Indonesia is expected to be the fourth largest economy in the world in 2050 as per projections by PwC.
Investors are betting that the Reserve Bank of India will cut interest rates this year, most likely in the second half — which will likely lift stock markets as well as spur higher spending in the economy. “Despite the stronger-than-expected GDP growth rate in the fourth quarter, we view today’s data as ‘Fed friendly,'” said chief economist Jay Bryson of Wells Fargo Economics. Spain has one of the largest economies in Europe given its 2021 GDP of $1.43 trillion. Despite the headwinds internationally, Spain’s economy is expanding fairly rapidly relative to other developed nations.
The economy is expected to grow slightly in 2023, driven by exports, especially lithium and copper. Inflation has been projected by the World Bank to remain high in the short term. Potential growth data is calculated based on IMF estimates of each country’s potential GDP. Potential GDP is defined as the maximum output a country can produce, in a given period of time, without causing inflation to rise. Unlike actual GDP, potential GDP cannot be observed directly from the real world.
- We begin our list with Portugal, a southern European country that borders Spain.
- However, despite these ups and downs, the top economies as measured by GDP don’t budge easily from the positions that they hold.
- You can also view each country’s historical growth data on the chart below the map by using the drop-down menu.
- About two-thirds or more in each country consider Chinese investment a benefit to their domestic economy, including at least a third who say the investment has benefited their economy a great deal.
- For our list, we used nominal GDP in 2021 according to the World Bank and assumed that the biggest economies of the world in 2022 will be similar to the biggest economies in the world in 2021.
With a GDP of $1.54 trillion in 2021, Australia also has one of the largest economies in the Asian Pacific. The Netherlands has one of Europe’s larger economies with a GDP of slightly over $1 trillion last year. Given its developed economy, the country also has one of the higher incomes on average in the EU with a GDP per capita of $58,061 in 2021.
Views of the international balance of economic power have changed little in most middle-income countries surveyed. As was the case in 2019, those in Brazil, India, Kenya and Mexico continue to see the U.S. as the top economy, while those in South Africa and Argentina are about as likely to name the U.S. as they are China. Indonesia stands out for an 8-point decline in the share who considers China the leading economy. South Korea’s economy is a 20th-century success story that is today firmly established as an advanced, industrial economy.
The Future Of Top Economies
Its low fertility rate makes replacing its aging workforce more difficult, and its high levels of net immigration strain its social welfare system. However, there have been some big movers within the list in the last 20-plus years. China was in 13th place in 2000, but has been sitting in second place since 2010. Further down the list, Indonesia, vaulted forward from the 27th largest economy in 2000 to the 16th as of 2022.
Gross domestic product
“Right now we’re paying close to $3 for a gallon of unleaded [gasoline] which is really good. But if we’re at $3.50 or $4, that undermines confidence. It undermines purchasing power.” Bryson expects the central bank to begin lowering rates in May, but adds that an earlier rate cut in March is not out of the question. That was fueled by a better-than-expected labor market, with solid job growth and rising wages.
List of countries by GDP (nominal)
Poland’s business-friendly climate and sound macroeconomic policies allowed it to be the only EU country to avoid recession in the aftermath of the 2008 financial crisis. However, inefficient legal and regulatory structures and an aging population are challenges for Poland’s ongoing growth in the future. Indonesia’s economy is the largest economy in Southeast Asia and is based largely on commodity export industries. Major exports include coal and petroleum products, in addition to agricultural commodities suitable for industrial use, such as rubber and palm oil. Indonesia’s budget deficit for 2023 is targeted at 2.81% to 2.95% of GDP; however, regional inequality, lack of infrastructure, and governmental corruption remain problems for Indonesia’s rising economy.
Russia has a nominal GDP of $1.78 trillion and a GDP, PPP of $4.79 trillion in 2021. Given it has considerable oil and gas reserves, the country is an energy superpower that also has substantial land resources. Switzerland has a large service sector, including financial services, and a high-tech manufacturing sector served by a highly skilled how to become a forex trader labor force. High-quality legal, political, and economic institutions and solid physical infrastructure set the stage for a productive economy with one of the highest per-capita GDPs in the world. The Netherlands is a major commercial transportation hub, with some industrial manufacturing as well as petroleum extraction and processing.
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Currently, Canada does not look like a nation expected to be among the largest economies in the world by 2o75, as the domestic economy has weakened while its currency has continued to depreciate. Recently, the Bank of Canada decided to hold rates while admitting that inflationary risks were increasing in the country. South Korea has developed into an economic powerhouse in the last several decades, and is expected to remain among the biggest economies in the world by 2075. Typical examples are illegal drugs and other black market goods, which by any standard are a part of the world economy, but for which there is, by definition, no legal market of any kind. Germany is the biggest economy in the European Union with an annual nominal GDP of 4.2 trillion US dollars placing it in the fourth position globally. The backbone of Germany’s economy is based on the export of machinery, vehicles, chemicals and household items.
Brazil ranks 11th in our list of the 50 largest economies in the world in 2023. Given its substantial land, resources, and population, the South American nation is poised for further economic https://bigbostrade.com/ growth in years to come. PwC has projected Brazil to be the fifth largest economy in the world in 2050. Saudi Arabia is the 17th largest economy in the world with a GDP of over $1 trillion.
As a result, nominal GDP doesn’t fully reflect the amount of goods and services produced in those countries. To more accurately reflect the purchasing power, GDP, PPP makes adjustments. Given adjustments can be difficult and subjective, GDP, PPP is harder to calculate. And 29% of Italians who feel negatively about their economy consider the U.S. the top economic power compared with 39% of those who feel positively. The countries on this list have various populations, politics, trade agreements, and demographics, all of which play a factor in how their economies and, therefore, GDP perform. As countries take measures to reduce corruption, open their markets, and take advantage of their natural resources and new technologies, they can see their GDP grow.
The United States has the largest economy in the world with a nominal GDP of $20.4 trillion according to the International Money Fund. Japan is the third largest economy in the world representing about 6 percent of the total global economy at a nominal GDP of 5.1 trillion US dollars. European countries occupy the three other consecutive spots in the top ten with Germany, France, and the United Kingdom taking up fourth, fifth and sixth position respectively. India, Brazil, Italy, and Canada complete the top ten spots of the largest economies in the world. Below is an overview of the world’s largest economies in terms of Gross Domestic Product. Indonesia has one of the largest economies in Asia with a nominal GDP of $1.19 trillion and GDP, PPP of $3.57 trillion in 2021.