Top 10 GDP Countries 2022
A country's economy relates to how goods and services are produced and consumed in a country. When an economy is growing, the amount of goods and services is generally increasing. When an economy is slowing, the growth of the number of goods and services produced could be slowing or even contracting.
In terms of 2022's largest economies, many of the world's economies are located in the West given that the West developed first. With the industrial revolution having begun in Britain and then followed by countries in Europe, the British and some European countries developed first.
Later, when the British immigrated to the United States, they brought with them valuable know-how that helped the United States also modernize. Given United States' substantial resources, the country became a leading economic power in the early 1900s.Given that the country was the only one that was pretty much left untouched during World War II, the United States economy became the dominant economy globally.
In recent decades, countries like China have grown in terms of GDP as they have modernized. For many years, China was one of the fastest growing economies in the world and as a result of the growth, China is now the second largest economy in terms of GDP. In the future, the economy of India and other emerging markets will likely increase substantially in size.
A country's economy relates to how goods and services are produced and consumed in a country. When an economy is growing, the amount of goods and services is generally increasing. When an economy is slowing, the growth of the amount of goods and services produced could be slowing or even contracting.
Modern day economies use currencies backed by central banks rather than backed by gold. The largest economies of today are also much more connected in terms of trade with other nations.
Due to high inflation, the U.S. Federal Reserve has increased interest rates five times in 2022 alone, and many analysts believe the U.S. central bank will raise rates further this year. Given the headwinds, economic growth could slow in the United States and potentially globally as well in the near term.
Understanding the economic landscape of various countries will help you as you prepare for global expansion. Many businesses go global to access greater talent pools, reach new markets, and diversify their teams for better business continuity.We've listed out the top 10 countries by GDP in 2022 as a guide. This is based on the most recent data available from the World Bank.
1. United States
The United States has been the world's largest economy since 1871. The nominal GDP for the United States is $21.44 trillion. The U.S. GDP (PPP) is also $21.44 trillion. Additionally, the United States is ranked second in the world for the approximate value of natural resources. In 2016, the U.S. had an estimated natural resource value of $45 trillion.
Several factors contribute to the U.S.'s powerful economy. The U.S. is known globally for cultivating a society that supports and encourages entrepreneurship, which encourages innovation and, in turn, leads to economic growth. The growing population in the U.S. has helped diversify the workforce. The U.S. is also one of the leading manufacturing industries in the world, coming only second to China. The U.S. dollar is also the most widely used currency for global transactions.
As the second-largest economy in the world, China has seen an average growth rate of 9.52% between 1989 and 2019. China is the second-largest economy considering nominal GDP, at $14.14 trillion, and the largest using GDP (PPP), which is $27.31 trillion. China has approximately $23 trillion in natural resources, 90% of which are rare earth metals and coal.
China's economic reform program of 1978 was a big success and resulted in a rise in average economic growth from 6% to over 9%. The reform program emphasized the creation of private and rural businesses, easing the state regulations on prices, and investment in workforce education and industry.
Japan has the third-largest economy in the world with a GDP of $5.15 trillion. Japan's GDP (PPP) is $5.75 trillion. Japan's market-driven economy, so businesses, production, and prices shift according to consumer demand, not governmental action. While the 2008 financial crisis took a hit on the Japanese economy and has stunted its growth since then, it was expected that the 2020 Olympics give it a boost.
The Japanese economy's strength comes from its electronic goods industry, which is the largest in the world, and its automobile industry, which is the third-largest in the world. In the future, the Japanese economy will face some big challenges, such as a declining population and an ever-increasing debt that, as of 2017, is 236% of its GDP.
The German economy is the fourth-largest in the world with a GDP of $4.0 trillion. Germany has a GDP (PPP) of $4.44 trillion and a per capita GDP of $46,560, the 18th -highest in the world. Germany's highly developed social market economy isEurope's largest and strongest economy and has one of the most skilled workforces. According to the International Monetary Fund, Germany accounted for 28% of the European area economy.
Germany's major industries are car manufacture, machinery, household equipment, and chemicals. Because of its dependency on capital good exports, the economy had a significant setback post-2008 financial crisis. The German economy is currently in the middle of its fourth industrial revolution due to the Internet and the digital age. Industry 4.0 is the term used for this transformation, which embraces solutions, processes, and technologies and describes the use of IT and a high degree of system networking in factories.
India's economy is the fifth-largest in the world, with a GDP of $2.94 trillion, overtaking the UK and France in 2019 to take the fifth spot. India's GDP (PPP) is $10.51 trillion, exceeding that of Japan and Germany. Due to India's high population, India's GDP per capita is $2,170 (for comparison, the U.S. is $62,794). India's real GDP growth, however, is expected to weaken for the third straight year from 7.5% to 5%.
India is developing into an open-market economy from its previous autarkic policies. India's economic liberalization began in the early 1990s and included industrial deregulation, reduced control on foreign trade and investment, and privatization of state-owned enterprises. These measures have helped India accelerate economic growth. India's service sector is the fast-growing sector in the world, accounting for 60% of the economy and 28% of employment. Manufacturing and agriculture are two other significant sectors of the economy.
6. United Kingdom
The United Kingdom, which has a $2.83 trillion GDP, is the sixth-largest economy in the world. In terms of GDP purchasing power parity, the UK is in the ninth spot with a GDP (PPP) of The UK is ranked 23rd GDP per capita, which is $42,558. The UK is expected to fall to the seventh-largest economy by 2023, with a GDP of $3.27 trillion. In 2016, the UK was the tenth-largest exporter of goods in the world, exporting goods to 160 countries worldwide. In the 18th century, the United Kingdom was the first country to industrialize.
The service sector dominates the UK economy, contributing about 80% of GDP, particularly the financial services industry.Londonis the second-largest financial center in the world. Manufacturing and agriculture are the second- and third-largest sectors in the United Kingdom. Britain's aerospace industry is the second-largest in the world, and its pharmaceutical industry is the tenth-largest.
France is the third-largest economy in Europe (behind Germany and the UK) and the seventh-largest economy in the world. France has a nominal GDP of $2.71 trillion. France's GDP per capita is $42,877.56, the 19th highest in the world, and GDP (PPP) is $2.96 trillion. According toWorld Bank, France has unfortunately experienced high unemployment rates in recent years: a 10% unemployment rate was recorded for 2014, 2015, and 2016 and it declined to 9.681% in 2017.
France's economy is a diversified free-market-oriented economy. The chemical industry is a key sector for France, as well as agriculture and tourism. France accounts for about one-third of all agricultural land in theEuropean Unionand is the sixth-largest agricultural producer and the second-largest agriculturalexporter in the world, behind the United States. France is the most visiteddestination in the world. Additionally, France ranks 5th in the Fortune Global 500 behind the United States, China, Japan, and Germany with 28 of the 500 biggest companies.
With a nominal GDP of $1.99 trillion, Italy is the eighth-largest economy in the world. In terms of GDP (PPP), Italy's economy is worth $2.40 trillion, and its per capita GDP is $34,260.34. Italy's economy is expected to expand to $2.26 trillion by 2023. Unfortunately, Italy is experiencing a relatively high unemployment rate of 9.7% and a debt of 132% of GDP.
Fortunately, Italy's exports are helping to recover the economy. Italy is the eighth-largest exporter in the world, conducting 59% of its trade with other European Union countries. Before World War II, Italy was primarily an agricultural economy and has now transformed into one of the world's most advanced nations. Italy is the second-largest exporter in the European Union, behind Germany, and has a significant trade surplus from exporting machinery, vehicles, food, clothing, luxury goods, and more.
Brazil has the ninth-largest economy in the world and the largest in Latin America, with a nominal GDP of $1.85 trillion. Brazil is also the largest and most populous nation in Latin America. Brazil has the world's 73rd highest per capita GDP of $8,967 and a GDP (PPP) of $2.40 trillion. The country has an estimated $21.8 trillion in natural resources, which includes vast amounts of timber, uranium, gold, and iron.
Brazil is a developing free-market economy. From 2000 to 2012, Brazil was one of the fastest-growing major economies in the world. Brazil, however, has one of the most unequal economies in the world. In 2017, the economic crisis, corruption, and lack of public policies increased the poverty rate and many became homeless. Six billionaires alone in Brazil are richer than more than 100 million of the poorest Brazilians.
Canada has the tenth-largest economy in the world, with a nominal GDP of $1.73 trillion. Canada's per capita GDP of $46,260.71 is ranked 20th globally while its GDP (PPP) of $1.84 trillion is ranked 17th globally. Canada's GDP is expected to rise to $2.13 trillion by 2023.
Canada has the fourth-highest estimated value of natural resources, $33.2 trillion. Canada is considered an energy superpower due to its abundant natural resources, such as petroleum and natural gas. According to the Corruption Perception Index, Canada is one of the least corrupt countriesin the world and one of the world's top ten trading countries.Canada ranks above the United States on the Index of Economic Freedom and experiences a relatively low level of income disparity.