By Vishweshwar HS, www.showmytrade.com
The U.S. is the world’s largest economy. The economy size of the U.S. economy was at $21.44 trillion in nominal terms. The U.S. is an economic superpower in the world. U.S. economy is almost a quarter of the entire global economy. The critical economic strength is advanced technology, infrastructure, and natural resources.
While purchasing power parity terms, the size of the U.S. economy is at $21.44 trillion.
Nominal GDP: $21.44 trillion and GDP (PPP): $21.44 trillion
Past few decades, China is growing into a manufacturing and exporting hub of the world. China called the “world’s factory,” as it has a significant manufacturing and export base. The size of China’s economy was $14.14 trillion. However, China’s economy is slowing down in the past couple of years.
While purchasing power parity terms, the size of China’s economy is $27.31 trillion.
Nominal GDP: $14.14 trillion and (PPP): $27.31 trillion
The third-biggest economy of the world is Japan. The financial crisis of 2008 triggered a recession in Japan. Japan is suffering from both weak demand and colossal debt. Japanese economy growth rate muted for an extended period. The size of the nominal GDP was $5.15 in 2019.
While purchasing power parity terms, the size of Japan’s economy is at $5.75 trillion.
Nominal GDP: $5.15 trillion and (PPP): $5.75 trillion
The largest economy of Europe, Germany, is one of the largest and most influential economies in Europe. Germany is known for its capital goods export and advanced manufacturing solutions. Germany is the fourth-largest economy in terms of nominal GDP, with a $3.86 trillion GDP.
While purchasing power parity terms, the size of the German economy is $4.44 trillion.
Nominal GDP: $3.86 trillion and (PPP): $4.44 trillion
India is the fifth-largest and fastest-growing economy in the world. In 2019, India overtook the U.K. and France in terms of the biggest economy. Indian economy is growing with a nominal GDP of $2.94 trillion.
India began its journey as an agrarian nation; today, its service sector is the fastest-growing in the world. Recently India is also focusing more on the manufacturing industry with the government’s initiatives “Make in India.” The core strength of the economy is demand, demography, and development.
While purchasing power parity terms, India ranks third in the world with a size of $10.51 trillion.
Nominal GDP: $2.94 trillion and (PPP): $10.51 trillion
The United Kingdom, the leader in the Industrial Revolution, is the sixth-largest economy in the world after India. U.K’s economy driven by the services sector, manufacturing, and agriculture. U.K. economy is growing with a nominal GDP of $2.83 trillion.
While purchasing power parity terms, the size of the U.K. economy is at $3.04 trillion.
Nominal GDP: $2.83 trillion and (PPP): $3.04 trillion
France is the seventh-largest economy and also the most-visited country in the world. Apart from Tourism, France is also a leading agricultural producer. In the manufacturing sector, the primary industries include chemical, automotive, and armament industries. France’s economy is growing with a nominal GDP of 2.71 trillion.
While purchasing power parity terms, the size of the France economy is $2.96 trillion.
Nominal GDP: $2.71 trillion and (PPP): $2.96 trillion
Italy is the world’s eighth-largest economy. The significant exports include precision machinery, metals, metal products, clothing, footwear, motor vehicles, including luxury vehicles, motorcycles, and scooters. The Italian economy is growing with a nominal GDP of 1.99 trillion.
While purchasing power parity terms, the size of the Italian economy is $2.4 trillion.
Nominal GDP: $1.99 trillion and (PPP): $2.40 trillion
Brazil is the ninth-largest economy after Italy. Brazil’s economy somewhat declined with the end of the commodity supercycle. The main export includes Soybeans, Iron Ore, Crude Petroleum, Raw Sugar, and Cars. The Brazilian economy is growing with a nominal GDP of 1.85 trillion.
While purchasing power parity terms, the size of the Brazilian economy is at $3.37 trillion.
Nominal GDP: $1.85 trillion and (PPP): $3.37 trillion
Canada is the tenth-largest economy in the world after overtaking Russia. While services are the dominant sector, manufacturing is the cornerstone of the economy, with 68% of its exports constituting of merchandise exports. Canada’s economy is growing with a nominal GDP of 1.73 trillion.
While purchasing power parity terms, the size of the Canadian economy is at $1.84 trillion.
Nominal GDP: $1.73 trillion and (PPP): $1.84 trillion
(Source: IMF’s World Economic Outlook Database, Oct 2019)
The world economies went through many different economic cycles. However, out of the Top 20 economies of 1980, 17 countries are present in the list. Only three countries entered in this list.
The world is grappling with the new Covid-19 virus and its impact on the world’s economy.
The trade and relations between the countries are essential to watch.
Kindly share your comments on the “The Top 10 Economies in the World!” below. Any suggestions regarding this article will update in the next edition.
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