THE WORLD'S LARGEST ECONOMIES

The economy of a country is usually defined by its gross domestic product (GDP). This is the total market value of all goods and services produced in a country over a certain period, usually a year. Regular calculations of GDP in different countries help to rank the largest economies in the world.

As of 2022, the United States and China have the largest economies on the planet, well ahead of other countries in both nominal GDP and GDP as measured by purchasing power parity (PPP).

Interestingly, in terms of nominal GDP, the U.S. is $6.1 trillion ahead of China, but on a PPP basis, China leads by 4 trillion. Overall, China's GDP growth rate is more than twice that of the U.S.

In addition to the United States and China, the world's top 5 economies include such countries as Japan, Germany and the United Kingdom. Despite the powerful financial crises and other upheavals that regularly occur in the world, the list of the top 20 economies has remained virtually unchanged over the past 40 years.

Important. The nominal GDP of the top 10 countries accounts for about 70% of the world economy, while the 20 strongest economies give nearly 80%.

WORLD ECONOMIES RANKING 2022

COUNTRY NOMINAL GDP (MILLIONS OF DOLLARS)
1. U.S. 22,939,580
2. China 16,862,979
3. Japan 5,103,110
4. Germany 4,230,172
5. Great Britain 3,108,416
6. India 2,946,061
7. France 2,940,428
8. Italy 2,120,232
9. Canada 2,015,983
10 Republic of Korea 1,823,852
11. Russia 1,647,568
12 Brazil 1,645,837
13. Australia 1,610,556
14. Spain 1,439,958
15. Mexico 1,285,518
16. Indonesia 1,150,245
17. Netherlands 1,007,562
18. Saudi Arabia 842,588
19. Switzerland 810,830
20. Turkey 795,952

Note. Country information on nominal GDP is based on current World Bank data for 2021.

TOP 5 ECONOMIES OF THE WORLD

U.S.

GDP (nominal) – $22,939,580 million

USA

The U.S. has the most technologically advanced economy in the world, accounting for 20% of global output. The service sector is very developed. U.S. corporations are at the forefront of global innovation, especially in computers, pharmaceuticals, retail, finance, medical, aerospace and military equipment.

CHINA

GDP (nominal) – $16,862,979 million

China

China has seen remarkable economic growth over the past few decades. Since the late 1970s, the country has abandoned a closed system with centralized planning and moved to a more open, market-oriented system. This fact has helped the country achieve the much coveted second place in the list of the world's largest economies, and first place in terms of GDP at PPP.

JAPAN

GDP (nominal) – $5,103,110 million

Japan

With a nominal GDP of just over $5 trillion, Japan's economy ranks third in the world. This is largely made possible by mutually beneficial cooperation between the government and private industrial companies, a strong work ethic, high technology and relatively low defense spending (just under 1% of GDP).

GERMANY

GDP (nominal) – $4,230,172 million

Germany

Germany has the largest economy in Europe and is the fourth largest in the world. The country has a very skilled labor force and a high standard of living. Germany is the leading exporter of machinery and vehicles, chemicals and home appliances. The country has shown steady economic growth over the past decade.

UNITED KINGDOM

GDP (nominal) – $3,108,416 million

 India

Despite the growth of the Indian economy in recent years, which has become the fastest growing economy in the world among the leading countries, even surpassing China in many indicators, in 2022 the UK displaced India and returned to the top-5 ranking. The diversity of the British economy covers a wide range of modern industries and financial and banking services.

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