The Top 25 Economies in the World

Gross domestic product (GDP) is used to provide a snapshot of the monetary market value of all final goods and services that a country has produced during a specific period. GDP helps to provide a country’s economy by using expenditure, output and income.

A nation’s GDP is an estimate of the total value of all goods and services produced during a specific period (usually a quarter or a year). GDP can be calculated by adding up all the money spent by consumers, businesses, and governments in a given period. It can also be calculated by adding up all the money received by all the participants in the economy.

There are two main ways to measure GDP: by measuring spending or by measuring income.

Countries are ranked by nominal GDP estimates from financial and statistical institutions and calculated at market or government official exchange rates. Nominal GDP does not take into account differences in the cost of living in different countries and results may vary from year to year depending on fluctuations in the currency exchange rates of any given country.

World GDP is the total gross national income of the planet. Gross national income takes a country’s GDP, adds the value of income from imports, and subtracts the value of money from exports.

https://datawrapper.dwcdn.net/Wz1On/12/

1. United States

  • 2020 Nominal GDP in Current U.S. Dollars: $20.89 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $20.89 trillion
  • 2020 GDP Growth: -3.6%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $63,413.5

The economy of the United States is the largest in the world as measured by nominal GDP. The biggest contributor to that GDP is the economy’s services sector, which includes finance, real estate, insurance, professional and business services, and healthcare.

The United States has a relatively open economy, which facilitates flexible business investment and foreign direct investment in the country. It is the world’s major geopolitical power and has been able to maintain a large external national debt as the creator of the world’s primary reserve currency. The US economy is at the forefront of technology in many industries, but it faces increasing threats in the form of economic inequality, rising health care and social security net costs, and deteriorating infrastructure.

2. China

  • 2020 Nominal GDP in Current U.S. Dollars: $14.72 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $24.27 trillion
  • 2020 GDP Growth: 2.3%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $10,434.8

China currently has the world’s second-largest nominal GDP in dollars and the largest in terms of PPP. With annual growth that consistently surpasses that of the United States, China could be well on its way to becoming the world’s largest economy by nominal GDP in the coming years.

Since China has progressively opened up its economy over the past four decades, economic growth and living standards have improved significantly. As the government gradually phased out collectivist agriculture and industry, allowed greater flexibility for market prices, and increased the autonomy of businesses, foreign and domestic trade and investment took off. Together with an industrial policy that encourages domestic manufacturing, it has made China the world’s number one exporter. Despite these advantages, China faces some significant challenges, such as a rapidly growing population and severe environmental degradation.

3. Japan

  • 2020 Nominal GDP in Current U.S. Dollars: $5.06 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $5.25 trillion
  • 2020 GDP Growth: -4.6%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $40,193.3

Japan is the third-largest economy in the world. Its GDP crossed the $5 trillion mark in 2019. Strong cooperation and advanced technical know-how between government and industry have formed Japan’s manufacturing and export-oriented economy. Many major Japanese businesses are organized as a network of interconnected companies known as keiretsu.

After the lost decade of the 1990s and the effects of the global Great Recession, Japan has seen a growth spurt in recent years under the policies of former Prime Minister Shinzo Abe. However, Japan is poor in natural resources and dependent on energy imports, especially after the general shutdown of its nuclear power industry following the 2011 Fukushima disaster. Japan is also struggling with a rapidly ageing population.

4. Germany

  • 2020 Nominal GDP in Current U.S. Dollars: $3.85 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $4.52 trillion
  • 2020 GDP Growth: -4.6%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $46,208.4

Fourth among world economies is Germany, with a 2020 GDP of $3.85 trillion. Germany is also the largest economy in Europe.

Germany is a top exporter of vehicles, machinery, chemicals and other manufactured goods and has a highly skilled workforce. However, Germany is facing some demographic challenges to its economic development. Its low fertility rate makes it more difficult to replace its ageing workforce, and its high levels of net immigration affect its social welfare system.

5. United Kingdom

  • 2020 Nominal GDP in Current U.S. Dollars: $2.76 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $3.08 trillion
  • 2020 GDP Growth: -9.7%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $41,124.5

The United Kingdom has the fifth-largest economy in the world. Its GDP in 2019 was $2.83 trillion, down 9.7% from the prior year.

The UK economy is driven by its large services sector, particularly in finance, insurance and business services. The country’s wide-ranging trading ties with continental Europe have been greatly complicated by the proposal for Brexit following the 2016 vote to leave the European Union (EU). As of January 31, 2020, the UK is not officially a member of the European Union. , but controversial talks on trade relations between the two continue.

6. India

  • 2020 Nominal GDP in Current U.S. Dollars: $2.66 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $8.97 trillion
  • 2020 GDP Growth: -7.3%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $1,927.7

India is the sixth-largest economy in the world with a GDP of $2.66 trillion in 2020, which is 7% lower than in 2019. Due to its large population, India’s GDP per capita is one of the lowest on our list.

India’s economy is a mix of traditional rural farming and handicrafts along with modern industry and mechanized agriculture. India is a major exporter of technology services and business outsourcing, and the services sector makes up a major part of its economic output. Liberalization of India’s economy has spurred economic growth since the 1990s, but inflexible trade regulation, widespread corruption, and persistent poverty have posed challenges to ongoing expansion.

7. France

  • 2020 Nominal GDP in Current U.S. Dollars: $2.63 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $3.15 trillion
  • 2020 GDP Growth: -7.9%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $39,030.4

France’s GDP in 2020 was $2.63 trillion, ranking seventh in the world. Tourism is an important industry, and France receives the most visitors of any country each year.

France is a mixed economy with many private and semi-private businesses in a wide variety of industries. However, there is still heavy government involvement in some key sectors such as defence and electric power generation. The French government’s commitment to economic intervention in favour of social equality also poses some challenges to the economy, such as a rigid labour market with high unemployment and a large public debt relative to other advanced economies.

8. Italy

  • 2020 Nominal GDP in Current U.S. Dollars: $1.89 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $2.49 trillion
  • 2020 GDP Growth: -8.9%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $31,714.2

Italy has the world’s eighth-largest GDP with $1.89 trillion in 2020, down 8.9% from 2019. It is also the third-largest economy in the Eurozone.

Italy’s economy and level of development vary notably by region, with a more developed, industrialized economy in the north and undeveloped southern regions. Italy continues to suffer sluggish economic growth due to high public debt, an inefficient court system, a weak banking sector, an inefficient labour market with long-standing high youth unemployment, and a large underground economy.

9. Canada

  • 2020 Nominal GDP in Current U.S. Dollars: $1.64 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $1.83 trillion
  • 2020 GDP Growth: -5.3%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $43,258.2

Canada had $1.64 trillion in GDP in 2020, making it the ninth-largest economy in the world. Canada has a well-developed energy extraction sector, with the world’s third-largest proven oil reserves. Canada also has impressive manufacturing and services sectors, mostly within the U.S. Located in urban areas close to the border.

Canada’s free trade relationship with the United States means that three-quarters of Canada’s exports go to the U.S. each year. Happens in the market. Canada’s close ties with the United States have meant that it has largely developed in parallel with the world’s largest economy.

10. South Korea

  • 2020 Nominal GDP in Current U.S. Dollars: $1.64 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $2.24 trillion
  • 2020 GDP Growth: -0.9%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $31,631.5

South Korea is the 10th largest economy in the world, with a GDP of $1.64 trillion in 2020, surpassing the world’s top 10 economies by GDP. South Korea’s economy is a 20th-century success story that is today firmly established as an advanced, industrialized economy. Known for its strategy of export-led development and the dominance of its chaebols (large trading conglomerates), South Korea has in recent decades built a network of free trade agreements covering 58 countries that account for the world’s GDP. accounted for more than three-quarters of the It is a leading producer and exporter of electronics, telecommunications equipment and motor vehicles.

However, with this progress, South Korea now faces some of the same challenges that many other advanced economies are dealing with, including slower growth and an ageing workforce.

11. Russia

  • 2020 Nominal GDP in Current U.S. Dollars: $1.48 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $4.13 trillion
  • 2020 GDP Growth: -3%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $10,126.7

Russia is the world’s 11th largest economy, with a GDP of $1.48 trillion as of 2020, down 3% from 2019.

Russia has moved towards a more market-based economy in the 30 years since the collapse of the Soviet Union, but government ownership and interference in business are still common. As a major exporter of oil and gas as well as other minerals and metals, Russia’s economy is highly sensitive to fluctuations in world commodity prices.

12. Brazil

  • 2020 Nominal GDP in Current U.S. Dollars: $1.44 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $3.15 trillion
  • 2020 GDP Growth: -4.1%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $6,796.8

Brazil is the 12th largest economy in the world and the largest in South America with a GDP of $1.44 trillion in 2020. Brazil’s diverse economy ranges from heavy industries, such as aircraft and motor vehicle production, to mineral and energy resource extraction. It also has a large agricultural sector which makes it a major exporter of coffee and soybeans.

Brazil emerged from a severe recession in 2017 and faced a series of high-level corruption scandals along the way. In the wake of these developments, Brazil instituted a series of major economic reforms aimed at curbing public spending and debt, investing in energy infrastructure, lowering barriers to foreign investment, and improving labour market conditions.

13. Australia

  • 2020 Nominal GDP in Current U.S.: $1.33 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $1.34 trillion
  • 2020 GDP Growth: -0%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $51,692.8

Australia is the 13th largest economy in the world with a GDP of $1.33 trillion in 2020

Australia boasts a relatively open domestic economy with an extensive network of free trade arrangements with trading partners around the Asia-Pacific rim. It works to benefit Australia’s abundant natural resource and agricultural export industries. However, this has left Australia vulnerable to fluctuations in world commodity demand and prices in energy (coal and natural gas), metals (iron ore and gold), and agricultural products (beef and sheep products).

14. Spain

  • 2020 Nominal GDP in Current U.S. Dollars: $1.28 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $1.81 trillion
  • 2020 GDP Growth: -10.8%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $27,063.2

Spain’s GDP in 2020 was $1.28 trillion, making it the 14th largest economy in the world by GDP.

Spain’s economy suffered severely during the Great Recession, with unemployment rising above 25% and increasing the national debt despite fiscal austerity efforts. This has recovered in recent years as inflation and lowering labour costs have encouraged foreign investment and increased the competitiveness of Spain’s exports, including manufactured machinery and food items. However, political instability has hindered the government’s ability to sustain further economic reforms.

15. Mexico

  • 2020 Nominal GDP in Current U.S. Dollars: $1.07 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $2.42 trillion
  • 2020 GDP Growth: -8.3%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $8,329.3

Mexico’s GDP in 2020 was $1.07 trillion, making it the 15th largest economy in the world.

Over the past three decades, Mexico has emerged as a manufacturing economy under a series of free trade arrangements with the United States, Canada and 44 other countries. Several major U.S. Manufacturers have integrated supply chains with counterparts or operations in Mexico. Mexico supports a variety of exports, including consumer electronics, vehicles and auto parts, as well as petroleum and agricultural products.

The international drug trade is an ongoing challenge to Mexico’s development, contributing directly to violence and corruption in the country. Weak legal institutions make it difficult to regulate and integrate the large informal economy that employs more than half of Mexico’s workforce.

16. Indonesia

  • 2020 Nominal GDP in Current U.S. Dollars: $1.06 trillion
  • 2020 PPP Adjusted GDP in Current International Dollars: $3.3 trillion
  • 2020 GDP Growth: -2.1%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $3,869.6

Indonesia is the world’s 16th largest economy with a GDP of $1.06 trillion as of 2020

Indonesia’s economy is the largest in Southeast Asia and is largely based 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 has an institutional cap on the national budget deficit at -2.7% of GDP, which has led to its relatively low debt burden and investment-grade credit rating. However, regional inequality, lack of infrastructure and government corruption remain problems for Indonesia’s growing economy.

17. The Netherlands

  • 2020 Nominal GDP in Current U.S. Dollars: $913.86 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $1.03 trillion
  • 2020 GDP Growth: -3.8%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $52,397.1

The Netherlands stands as the world’s 17th largest economy, with a 2020 GDP of $913.86 billion.

The Netherlands is a major commercial transport hub with some industrial manufacturing as well as petroleum extraction and processing. It has a highly developed agricultural sector and is the world’s second-largest agricultural exporter. The Netherlands has a large financial services sector, with assets four times the size of Dutch GDP.

18. Switzerland

  • 2020 Nominal GDP in Current U.S. Dollars: $752.25 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $619.79 billion
  • 2020 GDP Growth: -2.4%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $87,097

The Alpine nation of Switzerland had a GDP of $752.25 billion in 2020, making it the 18th largest economy in the world.

Switzerland has a large services sector, including financial services, and a high-tech manufacturing sector served by a highly skilled labour 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 GDP in the world.

19. Turkey

  • 2020 Nominal GDP in Current U.S. Dollars: $719.95 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $2.37 trillion
  • 2020 GDP Growth: 1.8%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $8,536.4

Turkey is the 19th largest economy in the world with a GDP of $719.95 billion in 2020

Turkey has a large open economy, with large industrial and service sectors. Major industries include electronics, petrochemicals and automotive production. Political turmoil and involvement in regional armed conflicts have led to some financial and money market instability and uncertainty about Turkey’s economic future in recent years.

20. Saudi Arabia

  • 2020 Nominal GDP in Current U.S. Dollars: $700.12 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $1.63 trillion
  • 2020 GDP Growth: -4.1%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $20,110.3

Saudi Arabia’s GDP in 2020 was $700.12 billion, the 20th largest in the world.

The Saudi economy is heavily oil-based and is the world’s largest oil exporter. The Saudi government, through its oil company, Aramco, owns and operates most of the country’s major industries. However, with increasing interest in developing non-fossil fuel energy sources due to global environmental concerns, Saudis are seeking to diversify their economy by encouraging more private investment in healthcare and other service industries. The Saudi government has begun to at least partially privatize Aramco, launching an initial public offering (IPO) for the company in late 2019.

21. Poland

  • 2020 Nominal GDP in Current U.S. Dollars: $596.62 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $1.3 trillion
  • 2020 GDP Growth: -2.5%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $15,721

Poland is the 21st largest economy in the world, with a GDP of $596.62 billion. Heavy industry, which includes iron and steel production, machinery manufacturing, shipbuilding and coal mining, forms a significant part of Poland’s economy.

Poland’s business-friendly climate and solid macroeconomic policies allowed it to become the only EU country to survive a recession after the 2008 financial crisis. However, inefficient legal and regulatory structures and an ageing population pose challenges to Poland’s ongoing development in the future.

22. Sweden

  • 2020 Nominal GDP in Current U.S. Dollars: $541.22 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $568.71 billion
  • 2020 GDP Growth: -2.9%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $52,274.4

Sweden, with a GDP of $541.22 billion in 2020, is the 22nd largest economy in the world. Sweden is a competitive economy, mixing free enterprise with a high standard of living and a liberal social welfare state. Sweden’s manufacturing economy relies heavily on foreign exports, including machinery, motor vehicles and telecommunications.

Sweden has taken in a large number of new immigrants and thus faces a short to medium-term challenge of integrating them into Swedish society and its labour market.

23. Belgium

  • 2020 Nominal GDP in Current U.S. Dollars: $521.86 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $608.15 billion
  • 2020 GDP Growth: -5.7%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $45,159.3

Belgium’s 2020 GDP was $521.86 billion, making it the 23rd largest world economy. Belgium is a trade and transport hub with a diverse economy with a mix of services, manufacturing and high-tech industry.

Due to its deep integration with the rest of the European economy, Belgium is highly sensitive to fluctuations in the overall economic performance of its neighbours. Belgium faces a high public debt burden relative to its GDP, which can become a barrier to growth.

24. Thailand

  • 2020 Nominal GDP in Current U.S. Dollars: $501.64 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $1.27 trillion
  • 2020 GDP Growth: -6.1%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $7,186.9

Thailand is the 24th largest economy in the world with a GDP of $501.64 billion in 2020

In addition to free-enterprise and pro-investment policies, the Thai economy enjoys relatively high-quality infrastructure. Thailand is highly dependent on exports, which account for about two-thirds of its GDP. Its main exports include electronics, agricultural products, automotive and parts, and food products. Thailand also has a large international tourism industry. Its agricultural sector makes up about 10% of its economy but employs about 30% of its workers.

25. Austria

  • 2020 Nominal GDP in Current U.S. Dollars: $433.26 billion
  • 2020 PPP Adjusted GDP in Current International Dollars: $496.23 billion
  • 2020 GDP Growth: -6.7%
  • 2020 Nominal GDP Per Capita in Current U.S. Dollars: $48,586.8

Last but certainly not least in Austria, which had a 2020 GDP of $521.86 billion, making it the 25th largest economy in the world.

Austria has a well-developed market economy with a skilled labour force and a high standard of living, which includes a large service sector, a solid industrial sector, and a small (though highly developed) agricultural sector. It has close ties with other EU economies as well as the United States, which is its third-largest trading partner. The country faces several external risks, such as its exposure to the Russian banking sector and deep energy ties with Russia.

Total
1
Shares
Prev
Top 10 richest people in the world

Top 10 richest people in the world

The list of the world’s richest individuals may vary from year to year

Next
What is Lifi and how it will benefit your business
r25IQAEAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA8GKPBAABGMN2OwAAAABJRU5ErkJggg==

What is Lifi and how it will benefit your business

Table of Contents Hide What Is LiFi?

You May Also Like
Total
1
Share