This article focuses on the ten largest economies in the world as measured by GDP in the years 2019-2020.
Nations around the world go through different phases of economic cycles.
It is gratifying to see that these leading countries are not moving away from their position.
17 is still on the list compared to the 20 largest markets in 1980, i.e. only three new countries and little change in the 10 strongest economies in terms of GDP.
In addition to the fact that the world’s largest economies remain the same, the assessment shows that these countries are the locomotive of development and control most of the world economy.
Unfortunately, due to various factors, the lower 173 ranks together account for less than a fifth of the world economy.
For a better understanding, I have classified them on the basis of two factors, nominal GDP, and for a more complete picture of GDP per country based on purchasing power parity, on the basis of the IMF’s World Economic Outlook report. These are the ten largest economies in the world:
Nominal GDP: 1.81 trillion
GDP (PPP): 1.97 trillion
The world’s tenth largest economy is ahead of Russia.
Canada’s fiscal performance was strong between 1999 and 2008, with an average annual GDP growth rate of 2.9%.
Canada’s close financial ties with the United States allow it to recover quickly from the recession of 2009.
It also relies on its sound fiscal policy before the crisis, its sound financial system, a relatively stable global sector and the economic strength of its resource-rich western regions.
Growth resumed in 2010 and the Canadian economy grew at an annual average rate of around 1.4% between 2010 and 2013.
It hit the Canadian economy after the goods super cycle, which has recovered in recent years.
Canada’s nominal GDP is $1,800 billion, with annual growth of 2 percent in 2019, and is expected to reach $2,430 billion by 2023.
In the long term, according to our econometric models, Canada’s GDP will approach $2 trillion by 2021.
Why does Canada have a high GDP?
1. Fourth place for total natural resources.
2. It is called an energy superpower because it has the third largest proven oil reserves.
3. Government stability is one of the least corrupt countries in the world.
4. A highly globalized economy.
Nominal GDP: 1.89 trillion
GDP (PPP): 3.6 trillion
Brazil is the most densely populated and largest country in South America.
Brazil is one of the nine largest economies in the world by 2020 and is recovering from a socialist economy with a nominal GDP of $1,868 billion.
The country is famous for its textile, footwear, cement, wood, iron ore and tin industries.
The result is a relatively strong agricultural sector accounting for about 6% of total GDP.
At the same time, services (72.8%) and industrial production (21%), as in most modern industries, still account for a large share of the country’s GDP.
Brazil continues to recover from the severe recession of 2015 and 2016.
Before the crisis, it was said that in 2013 and 2014 financial products in the countries will be much larger and close to $2.5 trillion.
The IMF (International Monetary Fund) has recently revised its forecast for Brazil downwards to less than 1% due to declining confidence in political stability and monetary uncertainty.
The large downward revision in 2019 reflects a deterioration in Brazil, where sentiment has been significantly weakened by the current uncertainty over pension approvals and other structural reforms, according to the IMF.
Why is Brazil a rich country?
1. Enormous amounts of natural resources such as gold, uranium, iron and wood.
2. A growing manufacturing industry with increasing exports.
Nominal GDP: $2.01 trillion
GDP (PPP): $2.5 trillion
Italy ranks eighth in the world economy.
Despite the fact that the country suffers from political unrest, economic stagnation and the absence of major changes that are holding back the country.
In 2012 and 2013, the sector fell by 2.4% and 1.8% respectively, but the economy has strengthened in recent years.
It has tried to establish closer financial relations with its small neighbours, such as Bosnia-Herzegovina, France and other European countries.
It continues to suffer from a number of long-term management challenges, including a difficult labour market, stagnating productivity, high tax rates, large, albeit declining, non-performing loans in the banking sector (
) and a high level of public debt.
These weaknesses limit the country’s financial growth, so its development prospects remain lower than those of its European counterparts.
The unemployment rate remains in double figures, while the general government budget deficit is around 132% of GDP.
On the positive side, financial growth is driven by the growth of exports and investments.
What is the Italian economy based on?
1. It is one of the eight largest exporters in the world.
2. Profitable exports include high-quality automobile, ship and industrial products, various machinery, agricultural products and wine (Italy is the largest wine producer).
3. It is the third largest luxury centre in the world and the largest in Europe.
Nominal GDP: $2.72 trillion
GDP (PPP): $3.24 trillion
With a GDP of $2.72 trillion in 2019-2020, the United Kingdom ranks seventh per country.
In terms of GDP expressed in purchasing power, the United Kingdom ranks ninth with $3.24 trillion.
Measured in GDP per capita, it ranks 22nd with USD 44,177.
The IMF predicts that nominal GDP will reach $2.72 trillion in 2020, but we expect it to fall to a lower range of $3.47 trillion in GDP by 2023.
The UK is mainly supplied by the service sector, with industry being the second largest, accounting for over 75% of GDP, followed by agriculture.
There is still time to conclude negotiations between the UK and the EU on the brexite
, which led to a collapse of capital markets and led to the FTSE 100 falling from a record high in May 2018.
Growth is expected to slow down in the coming year as uncertainty about brexite will limit private consumption and capital investment.
But a stronger external sector and a stable global supply could mitigate the slowdown.
By 2020, the UK will remain one of the top five countries with a nominal GDP of $3.2 trillion.
At present, all hopes are placed in the new British Prime Minister Boris Johnson, who must address this issue as soon as possible in order to limit the impact of the violation on global financial stability.
Why is Britain so rich?
1. A highly mechanised and efficient agricultural sector
2. A very well-functioning agriculture. A strong financial and services sector.
Nominal GDP: $2.77 trillion
GDP (PPP): $3.16 trillion
The French economy generates about one fifth of the total gross domestic product (GDP) of the European Union.
Services, which account for more than 70 percent of GDP, are the most important contribution to the country’s economy.
France is one of the world’s leading manufacturers in the automotive, aerospace, railway, cosmetics and luxury goods sectors.
It also has a highly qualified workforce and the highest number of science graduates in Europe per thousand jobs.
The French economy weathered the financial crisis relatively well compared to its competitors.
Partially protected by a low dependence on foreign trade and stable private consumption, France’s GDP did not fall until 2009.
Nevertheless, the recovery has been relatively slow, with high unemployment rates, and remains an increasing challenge for policy makers, especially young people in this seventh economy.
Why is France so rich?
1. Tourism is an important factor, as France is the most visited destination in the world.
2. It is the sixth largest agricultural producer in the world and the largest in the EU.
3. It is less focused on the import of fossil fuels, as its energy needs are largely self-sufficient.
4. The third largest arms exporter in the world.
5. Exports include aviation, pharmaceuticals, metals and beverages.
Nominal GDP: $3.2 trillion
GDP (PPP): $12.36 trillion
If we compare GDP with a purchasing power parity of $12.36 trillion, the country will rank third among the world’s largest economies by 2020.
The large Indian population derives its nominal GDP of USD 2 199 from the beginning of the calculation of the country’s nominal GDP per capita.
By 2020, we expect India to overtake the UK and become the fifth largest economy in the world with a nominal GDP of over $3.2 trillion.
The service sector is today the fastest growing sector in the world, accounting for more than 30% of the economy.
Production remains one of the most important industries (currently in decline) and is regularly encouraged by government initiatives such as Make in India.
Although production in the agricultural sector has fallen to around 47 percent, it is still much higher than in Western countries and other emerging markets.
Due to the depreciation of the rupee, the large current account balance and low industrial growth in India, the pace of development has slowed down in recent years.
The U.S. made it worse by refraining from quantitative easing when investors quickly started withdrawing money from India.
More recently, the financial growth rate is higher than that of China, making India the fastest growing economy in the world.
Why is India a developing country?
1. In terms of energy, India is the second largest producer of coal, the second largest producer of steel and the third largest producer of electricity in the world.
2. The most exported goods are products from oil refineries, agricultural products, precious stones and jewellery, machinery, pharmaceuticals, computer services, textiles, etc. The most commonly exported goods are products of oil refineries, agricultural products, precious stones and jewellery, machinery, pharmaceuticals, computer services, textiles, etc.
Nominal GDP: $3.98 trillion
GDP (PPP): $4.59 trillion
Worldwide, it is the fourth largest economy with a nominal GDP of $3.98 trillion.
GDP output at purchasing power parity is $4.59 trillion, while GDP per capita is $48,264 (16th place).
Germany is heavily dependent on the export of capital goods, machinery and automotive equipment.
It is one of the world’s largest suppliers of iron, steel, coal, chemicals, machinery, cars and equipment.
Germany presented Industry 4.0 – its strategic plan to develop the country as a market leader and supplier of advanced manufacturing solutions – in order to maintain its production capacity in the current global situation.
Why is Germany so rich?
1. The German mechanical engineering industry is very high compared to its counterparts as its exports are more valuable than those of other manufacturing exporters in the world (e.g. China).
2. Low national expenditure and stable interest rates.
3. Natural resources are cheaper to import.
Nominal GDP: $5.41 trillion
GDP (PPP): $5.89 trillion
According to nominal GDP forecasts, the Japanese economy will be in third place with $5.4 trillion by 2020.
Until the 1990s Japan was the current Chinese equivalent, after an explosion in the 1960s, 1970s and 1980s.
Since then, however, the Japanese economy has developed less impressively.
With the 2020 Olympic Games, the country’s economy will recover somewhat, promoting stable capital inflows supported by the Bank of Japan’s liberal monetary policy.
Japan’s nominal GDP is $5.41 trillion. The United Nations Development Programme (UNDP) will continue to support the United Nations Development Assistance Framework (UNDAF), which is expected to reach USD 5.92 trillion by the end of this financial year.
Japan falls back to fourth place in terms of PPP surpluses; GDP (PPP) in 2018 stood at $5.594 billion, while per capita GDP was $39.306 (24th place).
Why is Japan so rich?
1. A common national philosophy in all aspects of high performance, covering production, services and management, with an emphasis on investment.
2. Active promotion of small and large companies in a globalised market.
Nominal GDP: $15.27 trillion
GDP (PPP): $29.47 trillion
Because of the enormous production and export capacity, we often call China a factory of the world.
Over the years, the role of the service sector has gradually increased and the role of manufacturing industry in contributing to China’s GDP per capita has decreased in relative terms.
In 1980, China was the seventh-largest country in the world in terms of GDP, worth $305.35 billion, while the United States was worth $2.86 trillion at the time.
Since the start of market reforms in 1978, the Asian giant has achieved an average annual financial performance of 10%.
Growth has slowed down in recent years, but remains high compared to other countries.
Measured in terms of GDP in PPS, China is the largest economy with $29.47 trillion of GDP (PPS) in 2020.
China’s GDP (PPP) will reach $37.06 trillion by 2023. China’s huge population is reducing its GDP to $10,153.
It is highly doubtful whether it will remain stable in the future, given the ongoing trade war, but China is the second largest economy in the world.
The World Bank forecasts 5.9% growth for China in 2020 against a backdrop of global economic instability and persistent internal and external winds.
The government has opted for a new approach to tax policy, known as the New Standard.
The authorities are implementing a controlled slowdown to avoid overheating of the market, which has slowed development since 2010.
For 2020, we forecast economic growth of 6.3 percent, which is nothing less than the recent annual growth rate of more than 10 percent.
How is China developing so fast?
1. Despite being communist with the introduction of economic capitalism, the country opened the door to a new globalized market.
2. Extreme production and low export costs.
3. An authoritarian government that should focus on long-term plans rather than short-term policies to please the public.
4. Artificially low interest rates.
1. United States of America
nominal GDP: $22.32 trillion
GDP (PPP): $22.32 trillion
Since 1871, the United States has maintained its position as the world’s largest economy.
The United States is often regarded as a financial superpower because the best economy accounts for almost a third of world capital, supported by modern infrastructure, technology and a wealth of natural resources.
While US manufacturing focuses on the service sector and generates almost 80% of GDP, production accounts for only about 15%.
The United States also has the world’s strongest high-technology economy, with industries such as oil, iron, automobiles, aerospace, chemicals, electronics, food and consumer goods.
Large US companies also play an important role on a global level: More than a fifth of the Fortune Global 500 companies are expected to grow US GDP by 2.5% in 2019 and 1.7% in 2020.
Why is the United States so rich?
I can’t answer this question openly with a very short answer. The main reason is that America in
was, is and will be a country of eternal opportunity that has attracted talent from all over the world since its inception.
If you’ve enjoyed the countdown to our ten biggest economies in the world, share your ideas below so we can improve articles like these while making them easier to understand.
Withyou can also share this article with your colleagues or friends on Facebook or Twitter by clicking thebutton below.
world gdp ranking 2019,list of countries by gdp per capita