what is the largest economy in the world

GDP per capita is often considered an indicator of a country’s standard of living;[1][2] however, this is inaccurate because GDP per capita is not a measure of personal income. The Global Growth Tracker allows you to gauge trends in economic growth through time across the globe. This chart shows the biggest economies in the world by GDP (current prices/PPP) in 2019 and their growth prospects in 2020. Even though the EU produces more, some experts say the U.S. is still a larger economy. They argue that the U.S. is a country while the EU is just a trading area that includes 27 separate member countries. Gross domestic product (GDP) measures the total output of a nation and is used as a gauge of the health of an economy and its size.

Belgium is a trade and transport hub that has a diversified economy with a mix of service, manufacturing, and high-tech industries. The international drug trade constitutes an ongoing challenge to Mexico’s development, contributing directly to violence and corruption in the country. Weak legal institutions have made it difficult to regulate and integrate the large informal economy that employs more than half of Mexico’s workforce.

You can also view each country’s historical growth data on the chart below the map by using the drop-down menu. Instead of PPP, these calculations use the official exchange rate. Unlike PPP, the official exchange rate doesn’t account for changes in the rate over time. It also doesn’t compensate for government manipulation of exchange rates. PPP takes these variances into account, giving a more realistic picture.

GDP by Region

As countries take measures to reduce corruption, open their markets, and take advantage of their natural resources and new technologies, they can see their GDP grow. Australia combines a relatively open domestic economy with an extensive network of free trade agreements with trading partners all around the Asia-Pacific Rim. Strong cooperation between government and industry and advanced technological know-how have built Japan’s manufacturing and export-oriented economy. Many major Japanese businesses are organized as networks of interlinked companies known as keiretsu. Coupled with an industrial policy that encourages domestic manufacturing, this has made China the world’s number one exporter. Despite these advantages, China faces some significant challenges, such as a rapidly aging population and severe environmental degradation, day trading etfs strategies which has slowed its growth.

Countries consistently measure GDP growth as a way to determine how the economy is performing and what actions need to be taken to create steady growth. With this progress, however, South Korea also now faces some of the same challenges that many other advanced economies are dealing with, including slower growth and an aging workforce. In 2022, Russia launched an invasion against its neighbor, Ukraine.

It has a highly developed agricultural sector and is the second-largest agricultural exporter in the world. The Netherlands has a large financial services sector, engaged in asset pooling and supported by the Dutch Ministry of Finance. Brazil emerged from a severe recession in 2017 and suffered a series of high-level corruption scandals along the way. Brazil is the eighth-largest economy in the world and the largest in South America. Brazil’s diversified economy runs the gamut from heavy industries, such as aircraft and automotive production, to mineral and energy resource extraction. It also has a large agricultural sector that makes it a major exporter of coffee and soybeans.

Domestic tourism in India

China has the world’s second-largest nominal GDP in current dollars and the largest in terms of PPP. Its economy has seen historical growth in the last two decades, causing some economists to speculate that China may overtake the U.S. as the world’s largest economy in the future. Non-sovereign entities (the world, continents, and simple trend trading strategies and indicators to beat the market some dependent territories) and states with limited international recognition are included in the list in cases in which they appear in the sources. These economies are not ranked in the charts here (except Kosovo and Taiwan), but are listed in sequence by GDP for comparison. This tracker charts the economic growth performance through time of ninety-one countries around the globe. With a GDP of 27.36 trillion dollars, the USA is by far the world’s largest economy in this ranking for 2023.

Germany

Those countries considered to have emerging or developing economies account for almost 60 percent of global gross domestic product, while advanced economies make up over 40 percent. The Saudi economy is heavily based on oil and is the world’s largest oil exporter. The figures presented here do not take into account differences in the cost of living in different countries, and the results vary greatly from one year to another based on fluctuations in the exchange rates of the country’s currency.

  1. Canada’s free trade relationship with the United States means that three-quarters of Canadian exports head to the U.S. market each year.
  2. Instead of PPP, these calculations use the official exchange rate.
  3. It also has a large agricultural sector that makes it a major exporter of coffee and soybeans.

For the third year in a row, China was the world’s largest economy in 2019. It contributed $22.5 trillion, or 17.3%, of the world’s $130 trillion in gross domestic product (GDP), according to estimates by the World Bank. It uses so-called international dollars to make better comparisons among countries. Argentina’s primary contributor to GDP is the industrial sector, followed by services and then agriculture. Its industries include food processing, motor vehicles, consumer durables, textiles, chemicals, printing, metallurgy, and steel.

what is the largest economy in the world

France is a mixed economy that has many private and semi-private businesses across a diverse range of industries. However, there is still heavy government involvement in certain key sectors, such as defense and electrical power generation. Because of its large population, India has the lowest per-capita GDP on this list. GDP is most commonly measured by using the expenditure method, which calculates GDP by adding up spending on new consumer goods, new investment spending, government spending, and the value of net exports.

What are the world’s fastest growing economies?

According to the IMF, China and the U.S. are to remain at the top of the ranking in 2024, while Indonesia is projected to pull ahead of Germany. By 2030, India is expected to overtake the U.S. as the second-largest economy on the planet. At that time China is also supposed to be the biggest economy in the world in terms of nominal GDP, a record still held by the U.S. Looking at global GDP at constant 2017 prices, but adjusted for purchasing power/cost of living, China was the biggest economy in the world in 2019, with an adjusted GDP of more than $22.5 trillion, according to the World Bank. In 2024, the United States had the largest economy in the world, with a gross domestic product of just under 29 trillion U.S. dollars.

Global growth resumed in 2021, at a robust 6 percent pace, before falling back to 3.5 percent in 2022 and 3.2 percent in 2023. Countries with positive growth rates are shaded in green; countries with negative growth rates, orange. To view changes over time, adjust the date using the slider at the top left of global liquidity and dollar debts of emerging market corporates the map.