So today’s article is about the top 10 economies in the world right now. The different phases of economic cycles spin economies around the world. But it is very surprising to see these top economies don’t move from their position that much. When compared to the top 20 economies of 1980, 17 are still present on the TOP 20 list, which means only three new entrants with almost no change in the top 10. The nominal GDP of the top 10 economies adds up to about 66% of the whole world’s economy, while the top 20 economies contribute almost 79%. So the top 10 economies of 2020 are listed below.
Nominal GDP: $1.73 trillion – Canada GDP (PPP): $1.84 trillion.
The 10th biggest economy of the world, just a rand ahead of Russia. Canada replaced Russia in 2015 for the 10th position and retained the position since then. Canada reported powerful financial development from 1999 to 2008, with annual GDP expanding by an average of 2.9% fold. Due to its close financial relations with the United States, Canada could bounce back rapidly from the effect of that recession in 2009. Growth has started up again in 2010, and on average, the economy of Canada increased by around 1.4% per year between 2010 and 2013.
The country has contained its level of unemployment and it’s likely to further shrink. While services are the major sector, manufacturing is the cornerstone of the economy, with 68% of its exports constituting merchandise exports. Canada is laying a lot of emphasis on manufacturing, which is crucial to its future economic growth. Canada’s nominal GDP is currently at $1.71 trillion and is expected to touch $1.74 trillion in 2019 and $2.13 trillion by 2023.
Brazil Nominal GDP: $1.85 trillion – Brazil GDP (PPP): $3.37 trillion
Brazil is Latin America’s largest & most populated country. With a nominal GDP of $1.87 trillion, Brazil is the ninth-largest economy in the world. The nation is renowned for its textile, shoe, cement, lumber, iron ore, and tin sectors. This results in a comparatively powerful industry of agriculture, which accounts for about 6% of the total GDP Services(72.8%) and industrial manufacturing (21%) sectors, yet still accounts for most of the country’s GDP as in most modern industries. Brazil continues to recover from a strong 2015 and 2016 recession.
The IMF (International Monetary Fund) recently decreased Brazil’s forecasts below 1% because of weakening confidence in political stability and uncertainty over exchange rates.
The IMF said, “The sizable downward revision for 2019 reflects downgrades to Brazil, where sentiment has weakened considerably as uncertainty persists about the approval of pension and other structural reforms,”.
Italy Nominal GDP: $1.99 trillion – Italy GDP (PPP): $2.40 trillion
Italy is the world’s eighth-largest economy, with a nominal GDP of $2.07 trillion. And its economy is expected to expand to $2.26 trillion by 2023. In terms of GDP (PPP), its economy is worth $2.40 trillion and it has a per capita GDP of $34,260.34.
Despite the nation suffering from political unrest, economic stagnation, and the absence of important changes that hold it back. The industry reported contractions of 2.4% and 1.8% in 2012 and 2013, but in the past few years, the economy has strengthened.
Italy—a prominent member of the eurozone—has been facing deep political and economic chaos. Its unemployment rate continues to be in double-digits, while its public debt remains sticky at around 132% of GDP. On the positive aspect, financial growth is driven by exports and growth in investments.
France Nominal GDP: $2.71 trillion – France GDP (PPP): $2.96 trillion.
France, one of the most-visited countries in the world, with a nominal GDP of $2.78 trillion is the third-largest economy of Europe and the sixth-largest in the world. Services are the main contributor to the economy of the country, with this industry accounting for over 70 percent of GDP. France is one of the world’s leading manufacturers in the automobile, aviation and railway industries, and cosmetic and luxury products.
The country offers a high standard of living to its people as reflected in its GDP per capita of $42,877.56. In recent years, economic growth has slowed, resulting in unemployment that has placed immense pressure on the government to reboot the economy. The World Bank has recorded unemployment rates at 10% during 2014, 2015, and 2016. During 2017, it declined to 9.681%.
6. United Kingdom
U.K. Nominal GDP: $2.83 trillion – U.K. GDP (PPP): $3.04 trillion
With a $2.83 trillion GDP, The United Kingdom is the sixth-largest economy in the world. The IMF projects its nominal GDP in 2020 is $2.83 trillion but we expect its ranking to slip to a lower place by 2023 with a GDP of $3.27 trillion.
The UK is powered mainly by the services sector, which adds over 75% of GDP with manufacturing, the second prominent sector followed by farming. Although agriculture is not a major contributor to its GDP, 60% of the U.K.’s food needs are produced domestically, even though less than 2% of its labor force is employed in the sector.
India Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion.
With a nominal GDP of $2.94 trillion, Indian is the fastest-growing trillion-dollar economy in the world and the fifth-largest overall. Surpassing France and the United Kingdom, India became the fifth-largest economy in 2019. Today its service sector is the world’s fastest service sector, by adding over 30 percent to its economy. Manufacturing remains as one of its crucial sectors and is being given due push via the governments’ initiatives, such as “Make in India.” Despite the agricultural sector’s input has decreased to about 17% but still, it is much bigger compared to western countries and other emerging markets.
The Indian economy was just $189.438 billion in 1980, ranking 13th on the list globally. India’s growth rate is expected to rise from 7.3% in 2018 to 7.5% in 2019 as drags from the currency exchange initiative and the introduction of the goods and services tax fade, according to the IMF. The economy’s strength lies in a limited dependence on exports, high saving rates, favorable demographics, and a rising middle class.
Germany Nominal GDP: $3.86 trillion – Germany GDP (PPP): $4.44 trillion
Germany is not only the strongest but also the largest economy in Europe. On the global scale, it is the fourth-largest economy in terms of nominal GDP, with a $4 trillion GDP. The nation has been dependent upon capital good exports, automobile machinery, and types of machinery. The economy grew by 2.2% and 2.5% in 2016 and 2017, respectively. It is one of the biggest iron, steel, coal, chemicals, machinery, automobiles, and machine tools suppliers in the world. To strengthen its manufacturing strength in the current global scenario, Germany has launched Industrie 4.0—its strategic initiative to establish the country as a lead market and provider of advanced manufacturing solutions.
Japan Nominal GDP: $5.15 trillion- Japan GDP (PPP): $5.75 trillion.
With its GDP crossing the $5 trillion mark in 2019, Japan is the third-largest economy in the world. Before the 1990s, Japan was today’s China equivalent, exploding in the 1960s, 70s, and 80s. Since then, Japan’s economy has not been as spectacular in terms of development. The financial crisis of 2008 rocked the Japanese economy and it’s been a challenging time for its economy since then. While the economy has broken the deflationary spiral, economic growth remains muted.
Its economy will get some boost with the 2020 Olympics keeping the investment flow strong, which is backed by a lax monetary policy by the Bank of Japan. Japan slips to the fourth spot when GDP is measured in terms of PPP; GDP (PPP) is $5.75 trillion in 2019, while its GDP per capita is $40,850 (24th spot).
China Nominal GDP: $14.14 trillion – China GDP (PPP): $27.31 trillion.
Over the past few years, China has experienced exponential growth, breaking the barriers of a centrally-planned closed economy to evolve into a manufacturing and exporting hub of the world. For its huge capacity of production and export, China is often referred to as “World’s Factory.” However, over the years, the role of services has gradually increased and that of manufacturing as a contributor to GDP has relatively declined.
The IMF projects a growth of 5.8% in 2020, which would sober down to around 5.6% by 2023. In terms of GDP in PPP, China is the largest economy, with a GDP (PPP) of $25.27 trillion. By 2023, China’s GDP (PPP) would be $36.99 trillion. China’s huge population brings down its GDP per capita to $10,100 (seventieth position).
1. United States
U.S. Nominal GDP: $21.44 trillion – U.S. GDP (PPP): $21.44 trillion.
The U.S. has retained its position of being the world’s largest economy since 1871. The size of the U.S. economy was at $20.58 trillion in 2018 in nominal terms and is expected to reach $22.32 trillion in 2020. While the U.S. industry is service-oriented, adding nearly 80% of its GDP, the production adds only 15% of its output. Also, this country is made of diverse sectors such as oil, iron, automobile, aerospace, chemicals, electronics, etc.
When the economies are assessed in terms of purchasing power parity, the U.S. loses its top spot to its close competitor China. The gap between the size of the two economies in terms of nominal GDP is expected to lessen by 2023; the U.S. economy is projected to grow to $24.88 trillion by 2023, followed closely by China at $19.41 trillion.
So there you have it. The top 10 biggest economies in the world. Tell us your thoughts on this in the comment section.