In our piece of writing today, we’ll shift attention to the Largest Economies in the world. I know this will benefit you to understand where most significant economic activities are taking place to help you if you are a foreign investor to choose where to invest wisely. Talking about the Largest Economies in the world, although there may be some slight changes from year to year, the key players are usually the same. fasten your Sit back then follow us as we take you on a journey of the Top 10 Largest Economies in the World
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So, in the meantime, we shall answer all of your questions on this topic.
TOP 10 LARGEST ECONOMIES IN THE WORLD 2020
Before giving an in-depth discussion on the Largest Economies in the World, below is a highlight of those countries that are responsible for a large chunk of the world’s economy.
- United States
- United Kingdom
These countries are selected based on their Gross Domestic Product (GDP) which is one of the most common measures used to measure economic output and strength of a country.
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1. United States
- Nominal GDP: $19.39 trillion
- GDP (PPP): $19.39 trillion
The United States of America is undoubtedly the number one Largest Economy in the world occupying the first spot with a Nominal GDP of $19.39 trillion which is forecasted to exceed USD 21 trillion by the end of 2020. The US has since 1871 retained this position of being the world’s largest economy. As a result, the country is considered to be the world most powerful economy in the world. Also, the US also has the most technologically powerful economy in the world with highly diversified industries including petroleum, steel, motor vehicles, aerospace, chemicals, electronics, food processing, and consumer goods. The country still manages to consistently increase economic output over the past few years despite increasing pressure from low-wage producers such as China. that is all about the US the country with Biggest Economy In The World 2020
- Nominal GDP: $12.01 trillion
- GDP (PPP): $23.15 trillion
Second Largest Economy In The World is China With a nominal GDP of $12.01 trillion, China occupies the second spot of the Largest Economies in the World. China has encountered huge development in recent years, breaking the boundaries of a centrally planned, closed economy to becoming a manufacturing and exporting center of the world which has earned the country the title “world’s factory” due to its huge manufacturing and export base. In any case, throughout the years, the role of service has gradually expanded and increased, and that of manufacturing as a contributor to GDP has declined moderately. This achievement was possible as a result of the introduction of the economic reforms in 1978. The secondary sector which comprises of industry and construction represents the largest share of GDP the nation’s GDP.
- Nominal GDP: $4.87 trillion
- GDP (PPP): $5.42 trillion
The third Largest Economy in the World is Japan having a GDP of 5$.42 trillion. Japan also ranks among the world’s largest and most technologically advanced countries as well as producers of motor vehicles, machine tools, electronics, ships, chemicals, and processed foods. The service section is the most dominant and important sector in Japan contributing about 70.9% to the country’s total GDP. Japan is third on the list of Biggest Economy In The World 2020.
- Nominal GDP: $3.68 trillion
- GDP (PPP): $4.17 trillion
Germany is the fourth-largest economy in the world as well as the strongest Economy in Europe aside from being the largest in Europe. The country has a $3.68 trillion GDP. However, the size of its GDP in terms of purchasing power parity is $4.17 trillion while its GDP per capita is $44,549.69. Also, it is the most powerful economy in the eurozone. The country is among the world’s largest producers of iron, steel, coal, chemicals, machinery, automobiles, and machine tools. However, the services sector is the country’s strongest sector accounting for 69.3% of the total GDP. The industry sector accounts for 30.1%. That is all about Germany as the fourth on the list of the Largest Economy In The World 2020.
5. United Kingdom
- Nominal GDP: $2.62 trillion
- GDP (PPP): $2.91 trillion
The United Kingdom occupies the fifth spot with a GDP of $2.62 trillion. Its nominal GDP is estimated at $2.96 trillion. More so, United Kingdom is the 2nd largest economy in Europe with strong economic activities in industries such as machine tools, electric power equipment, shipbuilding, aircraft, chemicals, food processing, clothing, and other consumer goods. UK’s economy is essentially determined by the service sector which contributes over 75% of GDP with manufacturing, the second noticeable sector is followed by agriculture. 60% of the U.K.’s food needs are produced domestically, and this has reduced the rate of importation of food which would have had some effect on the nation’s GDP.
- Nominal GDP: $2.61 trillion
- GDP (PPP): $9.45 trillion
Also it will interest you to know that India is one of the Fastest Growing multi-billion economies in the world occupying the sixth spot on our list of the Largest Economy in the World with a nominal GDP of $2.61 trillion and going by its pace in economic growth, is poised to overtake the United Kingdom to become the fifth-Largest Economy in the World by 2020 base the IMF projection. The nation positions third when GDP is compared regarding purchasing power parity at $9.45 trillion. Past years, India has developed into an open-market economy which has accelerated the country’s growth in recent years. Because of its large rural areas, the agricultural sector of the country accounts for up to 16.8% of total GDP. The country has a diverse economy, with strong industries like textiles, chemicals, steel, mining, machinery, pharmaceuticals and software.
- Nominal GDP: $2.58 trillion
- GDP (PPP): $2.83 trillion
On the seventh Largest Economy In The World List is France and the third largest economy of Europe with a nominal GDP of $2.58 trillion. Its GDP regarding purchasing power parity is around $2.83 trillion. The country has a high living standard as reflected in its GDP per capita of $44,549. Nonetheless, the economic growth has slowed down recently resulting in unemployment which has placed immense pressure on the government to reboot the economy. The country’s strongest industries include automobiles, aircraft, tourism, chemicals, machinery, and electronics.
- Nominal GDP: $2.05 trillion
- GDP (PPP): $3.24 trillion
Moving to Latin America where we have Brazil the largest and most populous nation in the region occupying the eight spot on our list of Largest Economies in the World with a nominal GDP of $2.05 trillion. The country has been enjoying the commodity wave which suffered multiple setbacks with the end of the commodity super cycle in addition to internal problems of corruption and political uncertainty which dampened the investment and business environment.
The country major industries include the textile and shoe industry as well as strong cement, lumber, iron ore and tin industries. Strong agriculture activity, which makes up about 6% of total GDP. However, as in most modern industries, the services and industry sectors still account for most of the country’s GDP. So, that is all you need to know about Brazil as the Biggest Economy In The World 2020.
- Nominal GDP: $1.93 trillion
- GDP (PPP): $2.31 trillion
Italy is the Ninth Largest Economy in the world with a nominal GDP of $1.93 trillion and the fourth-largest economy in Eurozone. Italy is an active member of the Eurozone and has been facing suffering from political instability, economic stagnation and lack of structural reforms, which are holding it back. Its unemployment rate continues to be on the rise while its public debt remains sticky at around 132% of GDP. On the positive side, exports and business investment have been the driving force of the country’s economic recovery. Other major industries include machinery, tourism, iron and steel, chemicals, clothing, and food processing.
- Nominal GDP: $1.65 trillion
- GDP (PPP): $1.76 trillion
Canada occupies the tenth spot on our list of Largest Economies in the World having displaced Russia in 2015 and has since then retained the position. Canada’s nominal GDP is currently estimated to be $1.65 trillion and is expected to touch $1.79 trillion in 2018 and $2.43 trillion by 2023. Its per capita GDP of $45,077 is ranked 20th globally while its GDP of $1.76 trillion in terms of PPP pulls it down to the 17th spot.
The country has been able to reduce the level of unemployment and is likely to reduce further. The country’s major sector services, transportation equipment, chemicals, food products, wood and paper products as well as fishing. While manufacturing is another bedrock of an economy with 68% of its exports constituting of merchandise exports. Canada is laying a lot of emphasis on manufacturing which is crucial to its future economic growth. So, Canada is the last on the list of Biggest Economy In The World 2020.
Now you know the countries that have the Largest Economies in the world and why they are enlisted. These countries include the United States, China, Japan, Germany, United Kingdom, France, India, Italy, Brazil, and Canada. Don’t be shocked to see any of this country disappear and new countries are breaking into the list on our next review of this topic due to constantly changing variables in economic activities worldwide.
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