Data has been collected by various bodies on the top 10 economies of the planet. The list came from IMF’s World Economic Outlook Database. The list is based on the GDP of various countries. The list is dominated by American, European and Asian countries.
1) United States: The American economy remains the richest in the world as far as GDP is concerned. The US economy of $19.42 trillion make up 25% of the world’s GDP. The US is a superpower with advanced infrastructure and efficient natural resources. However China tends to be higher in terms of PPP. The US is still ahead of China based on GDP per capita. The economy of the US is up to $59,609 against China’s $16,676.
2) China: China is second in this list as the world’s second richest economy. They have transferred themselves from a centrally closed economy to a major exporting and manufacturing hub over the years. This Asian giant have achieved much growth since it’s market reforms in the year 1978.
China have attained a growth of up to 10% on an annual basis. It has lifted up it’s population out of poverty to become the second richest economy on the planet. The Chinese economy overtakes the US economy in terms of ( Purchasing Power Parity) known as PPP and is likely to overtake the US in other terms in the coming years.
China says they are putting all things in place to become a world economic power. Their only economic rival is the United States and the country continues to grow. The economy of China has been known for its growth and this growth have been more than 7% in the previous years. The total GDP of the country was reduced to 6.7% in the year 2016. Equal contribution from services and manufacturing with up to 10% contribution of the agric sector propelled the Chinese economy.
3) Japan: Japan is third in this list as the third richest economy in the world. Their rank is in terms of nominal GDP. However the Japanese economy has been facing hard times from 2008 when it underwent recession. The Japanese economy have been strained by weak currency and sub zero bond yields. There was economic growth in the year 2016 and up to 1.2% growth in 2017. The nominal, GDP of the country is $4.84 trillion with the GDP (PPP) per capita of $42, 860
4) Germany: Germany is fourth in this list and is the richest economy in Europe. Germany is the fourth richest economy in the globe. They are known for exporting vehicles, machinery, chemicals and house hold equipment. They have skilled labour but the economy faced some challenges in 2016. The nominal GDP of Germany is $3.42 trillion while their purchasing power parity is $4.13 trillion.
5) United Kingdom: The economy of the United Kingdom in terms of GDP is $2.5 million. They are the 5th richest economy on the planet. Their economy is driven by services as the sector makes for up to 75% of the country’s GDP. Manufacturing is the second most important part of the GDP. Up to 60% of the UK food is produced locally even though lesser of its labour is employed in that sector. After the June 2016 summit, voters decided to exit from the European Union which made the prospects of the UK uncertain for which the UK and France may interchange positions.
The UK will now operate under the regulations of the EU and undergo trade agreements for two years after the formal announcement of their leaving the European Council. There has been estimates that Brexit could cause a lot from 2.2-9.5% of the GDP long term and this depends on trade agreements which replace the current single market structure.
6) India: They are no 6 in this list with a nominal GDP of $2.45 million. The high population of the country brings down it’s GDP to $1850. Their GDP is still based on agriculture when they are compared with Western countries. The services sector have grown in previous years and they now account for up to 57% of the GDP while the industry contributes up to 26%. The strength of the country’s economy is based on their high saving rates, high exports, rising middle class and favorable demographics.
7) France: France is among the most visited country on the planet and they are the 7th richest economy with a GDP of up to $2.42 trillion. In terms of purchasing power parity, France is up to $2.83 trillion.
The nation has a high standard of living and this is reflected in the GDP (PPP) of the country which is up to $43, 652. They are among the top importers and exporters on the planet and they have experienced many slow down over few years. The government is under pressure to revitalize the economy. The GDP of the country is likely to increase in the next 5 years.
8) Brazil: The economy of Brazil is up to $2.14 trillion. Brazil is now the 8th largest economy. The economy of Brazil has developed manufacturing, services and each sector offers about 26%, 68% and 6%. Brazil is now among the BRIC countries and they are among the fastest growing economies on the planet. However Brazilian recession in 2015 have disrupted the Brazilian economy.
They had a negative growth rate in the year 2016 and the IMF have expectations for the economy to grow at a rate of 0.2% in the year 2017. There was recovery of up to 1.7% in 2018. The Purchasing Power Parity (PPP) of Brazil is $3.22 trillion while the (PPP) per capita of GDP is up to $15,485.
9) Italy: Italy is 9th in this list and this is based on their nominal GDP. They are among the principal economies of the Eurozone, however there has been some impact based on the debt crisis of the region. The economy undergoes a lot of debt which is up to 33% of its GDP and the banking system neared to collapse and need bail in/ bail out. The economy is under high unemployment but witnessed some levels of positive growth of 0.1% in the year 2014 and this was for the first time since 2011.
Various measures are implemented by the government to improve the economy which contracted in previous years. The GDP which measured in terms of the purchasing power for the economy is about $2.3 million whereas GDP in terms of PPP is $37, 905.
10) Canada: Canada is no 10 in this list and they overtook Russia to become the 10th richest economy. Their GDP of $1.6 trillion is expected to be up to $1.9 trillion by 2022 and they continue to maintain the position over Russia. The nation of Canada has a service based economy and there was solid growth in the area of manufacturing including the petroleum and oil and gas sector starting from the Second World War. The country is very exposed to commodity prices and there was decline in the prices of oil.
There are expectations for the economy to grow to up to 1.8- 2.0% from 2017-2022. The purchasing power parity of the country is up to $1.75 trillion. The Canadian dollars have a reasonable stake in global economy.