Economies have existed ever since the sales of goods and services began. Economy and trade became more complex when international trade came into action.
To understand how well the economy of a country is doing, we need to take a look at its GDP. GDP (Gross Domestic Product) is the biggest indicator of a country’s economy.
We will be looking at the biggest economies in 2021 with GDP as our indicator.
1. United States of America
No points for guessing this one. Yes, the United States of America retains the first position which they have held for a long time. Though they are facing stiff competition from China, they remain in the number one spot. The nominal GDP of America is $21.43 Trillion in the year 2019.
They have seen a growth of 2.2% over their last year’s nominal GDP. The GDP Per Capita of the U.S.A is $65,298. The main reason behind their successful economy is entrepreneurship and manufacturing. The U.S.A is the second leading manufacturer in the world right after China.
It shouldn’t come as a surprise to see China in the second position. China’s economy has been booming rapidly in the past few decades. China is the leading manufacturer in the whole world. China is also rich in natural resources and that contributes greatly to its economy.
The nominal GDP of China in 2019 is $14.34 Trillion. Their annual growth is 6.1% over their last year’s GDP. At this rate, China is set to become the largest economy in the world soon.
The nominal GDP of Japan is $5.08 Trillion in 2019. This makes Japan the third-largest economy in the world. They have grown by 0.7% over their last year’s nominal GDP.
The biggest contributors to Japan’s economy are the electronics and automobile industry. Japan is advanced in technology and their electronics are famous worldwide for their quality. The biggest challenge for Japan to deal with moving forward is its aging population.
Germany has the biggest economy in Europe. It is the fourth-largest economy in the world. Germany’s Nominal GDP in 2019 is $3.86 Trillion. Their nominal GDP has grown by 0.6% since the previous year.
Germany has one of the most skilled workforces in the world. They are also known for producing top-of-the-line automobiles and machinery. The sales of household equipment and chemicals are great contributors to their booming economy.
Despite its large size and huge population, India is the only fifth-largest economy in the world. The nominal GDP of India is $2.87 Trillion in 2019. India’s GDP has grown by 4.2% since last year.
The biggest reason behind India’s economic growth is the liberation of the economy since the 1990s. India’s economic growth comes from a wide range of industries starting from the sale of handicrafts to the tech industry.
6. United Kingdom
The sixth-largest economy in the world is the United Kingdom. UK had a nominal GDP of $2.83 Trillion in 2021. Their GDP has grown by 1.5% compared to last year.
The significant industries in the UK are finance, real estate, and business services. The finance service of the UK accounts for roughly 80% of the GDP of the UK.
The nominal GDP of France was $2.72 Trillion in 2019. This makes it the seventh-largest economy in the world right behind the UK. France also has a wide range of industries ranging from chemicals to agriculture. France is also one of the most visited countries in the world. Their tourism business provides great support for their economic growth.
Italy is the eighth largest economy in the world as it has a nominal GDP of $2.00 Trillion in 2019. Italy’s GDP has only grown by 0.3% from last year. The economy of Italy hasn’t been growing rapidly as they have a significant amount of debt. However, the future of Italy looks bright in the coming years.
Coming in at number nine is a South American country. Brazil is the ninth-largest economy in the world with a GDP of $1.84 Trillion in 2019. Brazil’s economy has grown by 1.1% since last year. Brazil has one of the most unequal economies in the world due to heavy corruption and lack of public policies. The country is rich in resources and they are one of the biggest exporters of coffee and soybeans.
The tenth-largest economy in the world is Canada. Canada had a GDP of $1.74 Trillion in 2019. Canada’s GDP has grown by 1.7%. Canada makes a lot of money from the oil industry as well as the manufacturing industry. Canada is also extremely rich in petroleum and natural gas.
Russia comes in at number eleven in the list of the major economies. The nominal GDP of Russia in 2019 was $1.70 Trillion. Russia is one of the biggest exporters of oil and gas. Their economy has grown by 1.3% from the previous year.
12. South Korea
South Korea had a GDP of $1.65 Trillion in 2019. They have grown by 2% from the last year. South Korea is a major producer and exporter of electronics and motor vehicles. The business scene in South Korea is heavily privatized and this is one of the biggest reasons behind their success.
The thirteenth largest economy in the world is Australia with a GDP of $1.40 Trillion. Australia is abundant in natural resources and they make a good deal of money from exporting their resources. The economy of Australia has grown by 2.2% from the preceding year.
The nominal GDP of Spain in 2018 was $1.39 Trillion making them the fourteenth largest economy. The primary industries in Spain are tourism, manufacturing, and agriculture. Their GDP has grown by 2% from last year.
Mexico’s GDP as of 2019 was $1.27 Trillion. Mexico has now become an integral part of the supply chain of the U.S. Mexico exports a wide range of goods including electronics, vehicles, and petroleum.
Indonesia is the sixteenth largest economy in the world. Indonesia’s GDP was $1.12 as of 2019. They have seen a great growth of 5.0% from the previous year. Indonesia makes the majority of its money from the exporting and tourism industry.
The country of the Dutch is the seventeenth-largest economy in the world. Netherlands had a GDP of $907.05 Billion in 2019. The agriculture and finance industries are the major contributors to the growing economy of the Netherlands.
18. Saudi Arabia
Saudi Arabia’s GDP in 2019 was $792.97 Billion. Saudi Arabia makes the majority of its money by exporting oil. The government of Saudi Arabia is taking the initiative to increase private investment and grow in other industries as well.
Turkey is the nineteenth largest economy with a GDP of $761.43 Billion. Turkey is blessed with natural resources and the industrial and service sector businesses are also booming in Turkey.
Switzerland’s GDP in 2019 was $703.08 Billion. Switzerland is the twentieth largest economy in the world. The service industry and the manufacturing industries are booming in Switzerland. Switzerland has a highly skilled labor force and a great physical infrastructure which sets them up well for a growing economy.