The world is a financial hub where economies thrive and succeed. Gaining from the global economic operations and the interconnected economic ties, many nations have become economically strong and significant in the international realm.
Even though the sphere of the global economy comprises each and every country that exists on Earth, it is still ruled by some economically advanced and significant countries that have become the pioneers of the world economy.
Thinking about what countries these are? Let us read about the top 10 largest economies of the world that continue to define the operations of the global economy and persistently contribute to the world economy as well.
(Must check: Impact of COVID-19 on global economy)
Largest economies in the world
With the topmost GDP among all the countries of the world, the USA stands with a GDP of $21.43 trillion (GDP of USA - 2020, Source - Investopedia). A pioneer in all senses, the US is the economic leader of the world as it continues to develop its economy with an escalation of approximately 2%.
A pioneer in the field of military, technology, finance, and education, the country is recognized as the largest economy in the world. Likely to expand substantially in the coming years, the economy of the USA will grow exponentially as it still is doing well.
Although the country is home to an aging population, the country attracts people from all around the world willing to work for the nation.
The second-largest economy in the world is China. Situated in the Asian continent, China GDP 2021 rests at $14.34 trillion (GDP of China - 2020, Source - Investopedia).
A Communist nation, China has been a face of economic change and development ever since it adopted the policy of gradualism combined with advancement in fields of agriculture, technology, and other primary sectors.
A nation with the highest population and a state-controlled market, China is known to be one of the largest consumer markets of the world. Even though it has the highest population, China is no less than a producer of various goods and commodities that are exported to many countries worldwide.
With a national GDP of $5.08 trillion (GDP of Japan - 2020, Source - Investopedia), Japan stands at the 3rd position when it comes to the largest economies of the world.
Even though the nation is not an exporter of many raw materials unlike other competitors, it still is one of the biggest exporters of advanced technology and other commodities too.
A comparatively older country in terms of its population, Japan is unstoppable when it comes to its economic development. Situated in the continent of Asia, Japan has an export-oriented economic structure where a free market operates. Currently struggling with a series of economic setbacks, Japan's GDP is succeeding at the rate of 0.7%.
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Led by its Chancellor, Angela Merkel, Germany is ranked at the 4th position among the top 10 largest economies of the world. With a nominal GDP of $3.86 trillion (GDP of Germany - 2020, Source - Investopedia), Germany is recognized as one of the most prominent nations in terms of trade.
With a history that dates back to the era of World Wars, Germany continues to excel in the industrial sector and is the largest economy in the European continent.
With trade ties flourishing at a rapid rate, the country is also an important international player in terms of economy and international relations.
The German economic system type is a mixed economy, Germany is home to many private sector industries and other state-controlled economic sectors too.
The British have long been on the list of the largest economies of the world. And given the economic growth, the United Kingdom is expected to grow even more in the future ahead.
A nation with a GDP of $3.12 trillion (GDP of UK - 2020-21, Source - Investopedia) the United Kingdom is a constitutional monarchy ruled by a monarch and governed by the Prime Minister.
A prominent economic player ever since the beginning of world history, the UK has significantly achieved economic success and continues to do so.
Ranked at the 5th position in the list of the top 10 largest economies of the world, the UK is known for its industrial revolution and the global development that followed after that.
A consistent economy with respect to trade, the economic situation in the UK 2020 and 2021 is expected to grow higher in the future.
(Must check: What is Expansionary Fiscal Policy?)
A mixed economy, India is home to numerous natural resources that have helped its economy develop and excel. A developing nation situated in the South Asian region, India stands at the 6th position on the list with a GDP of $2.87 trillion (GDP of India - 2020, Source - Investopedia)
Although the country has secured the 5th position in the year 2019, it had to be demoted to the 6th position owing to the setback that the Covid-19 pandemic had brought along.
The world’s second-largest nation in terms of population, the economy of India is expected to be among the top 3 economies of the world by 2030.
With a major chunk of its population committed to the agricultural sector and the service sector, India extends its economic ties with a vast number of countries worldwide.
With a GDP of $2.72 trillion (GDP of France - 2020, Source - Investopedia) and a vibrant population committed to economic excellence, is what defines France the best.
A country situated in the western part of the European continent, the economy of France is walking towards higher levels at the rate of 1.5% per annum.
A permanent power of the United Nations Security Council, the nation is a significant player in the international realm. Renowned to be the fashion capital of the world, the country derives its gross revenue from sectors like agriculture, tourism, industry, and defense.
All in all, the 7th largest economy in the world - France is a rapidly growing economic power.
With an approximate GDP of up to $2.10 trillion (GDP of Italy - 2021-21), Italy is ranked to be the 8th largest economy in the world.
Although the country did not gain much importance in the economic realm in the past years, the country’s economy is accelerating at a rapid pace.
A diverse economy comprising a developed north progressing in the industrial sector and an underdeveloped southern region contributing towards agriculture.
Moreover, the tourism industry is also a major factor in the country’s growing economy. Heading up to economic advancement at the rate of 0.3%, this European nation has a promising economic future.
Located in the Southern American continent, Brazil is home to many natural resources that have helped it gain economic importance in recent times.
A significant hub of mining, agriculture, and industrial operations, Brazil has been increasingly active in expanding its economy that today amounts to around $1.84 trillion ( GDP of Brazil - 2020, Source - Investopedia).
While the country is still in the developing phase and the news of the Brazil economic crisis has impacted its economy, its service sector is a highly profitable sector for the overall GDP.
Furthermore, the country’s service sector accounts for nearly 65% of the country’s GDP that makes it the largest industry in the country. In the years to come ahead, Brazil will fly high with a vast economy that will keep no stones unturned.
Canada is ranked at the 10th position in the list of top 10 economies of the world. A neighboring country of the USA, Canada has a GDP of approximately $1.74 trillion (GDP of Canada - 2020).
Having recently entered the list of the 10 largest economies of the world, the Canadian economy is dominated by privately-controlled industries that promote economic development and rapid progression.
What’s more, the oil and gas industry also accounts for a major chunk of the domestic economy. Even though the country’s population is less, Canada’s economy today is rapidly moving towards economic development owing to its system of mixed economy.
While all nations are working at their domestic levels to become economically strong, the global economy is a major factor that will determine their economic success in the long run.
In a world where the global economy has begun to possess more significance than national economies, the future of the global economy looks promising as more and more countries are moving beyond their borders joining hands with each other to promote economic well-being and progress.
While the top 10 largest economies of the world have been mentioned above, the list does not stop here! As many more countries continue to excel in terms of economy, the list will keep changing.
(Also read: What is digital money?)
To conclude, the world is an economic hub where many countries are excelling and rapidly developing. As countries are maintaining economic ties with each other and accepting globalization as the key to economic development, the global economy will keep getting bigger and better in the years to come!
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