The economies of the world fluctuates with the changing phases of economic cycle. But what is important to note is that they top economies might fluctuate a bit initially but does not undergo a huge rank jump usually. Comparing the data, it can be observed that around 17 economies out of 20 were on 1980s top list and is still there in 2019, with only three new entrants.
With the key players remaining the same, it can easily be said that the given economies are the growth engine commanding over most of the world’s wealth. Going with the data, it can be said that the top 10 economies account for around 66% of the global wealth and the number goes to 79% when there are 20 economies. This means that the rest of the countries constitute around only one-fourth of global wealth.
List of Top 20 Economies of The World:
US has retained its top position in the world economy since 1871. The economy has been growing at a steady rate from one year to another. We have often heard US to be called as an economic super-power, this is because almost a quarter of the global economy is owned by the country. It is expected that the US economy would grow by $24.81 trillion by 2023.
Looking back, China has experienced an exponential growth over time. The country has broken the barriers from being a closed centrally-planned economy to being the highest exporting hub of the world. With the initiation of market reforms in 1978, the country has been experiencing around 10% growth annually every year. However, coming to recent times the growth has slowed down a bit but still it is growing at a greater rate compared to its peers.
Japan is the third-largest economy in the world with a GDP of $4.97 trillion in the last year. In the year 2008, the economy experienced a huge roadblock due to the ongoing financial crisis and it is quite challenging for the country to cope up since then. Due to the global crisis, recession and weak domestic demand occurred which made the country go to a huge public debt.
As the country tried to cope up, it got shattered once again due to the huge earthquake which made the country suffer both economically and socially. This nearly muted the growth of the country. With 2020 Olympics taking place there, it is expected that the country would experience some best investment inflow.
Being the largest economy of Europe, Germany is undoubtedly the strongest one as well. Coming to the global scale, it ranks fourth among the top economies. The 2008 financial crisis also took a toll on the economy as it was hugely dependent on exports of capital goods.
In order to enhance its strength in the manufacturing industry, the country has set up a strategic initiative so as to establish the country as a leading manufacturer and provider of advanced manufacturing solutions.
With $2.83 trillion, UK is the fifth-largest economy of the world, but if you compare the purchasing power parity of the country, then it would slip down to the ninth position. Looking back, from 1992 to 2008, the country experienced a growing trend in the economy. But due to the financial crisis of 2008, the economy has shrunk by 6% and it took around 5 years for the country to go back to the pre-crisis level.
France is the most visited country in the world. This is the third-largest economy in Europe and sixth in the world with a GDP of $2.78 trillion. The country indeed offers a high standard of living to its residents which has slowed down in recent years.
This has not only resulted in a growth in the rate of unemployment in the country but has put huge pressure on the country. France is also one of the leading producers and exporters of agricultural products and has a quite dominant manufacturing sector.
India is the fastest-growing trillion dollar economy in the list with a nominal GDP of around $2.72 trillion. As per IMF report, India would become the 5th largest economy 2020 surpassing the UK economy. Comparing the purchasing power parity, the country ranks 3rd in the world.
Currently, the growth rate of the country is around 7.5% with the initiative of currency exchange and GST, as per the reports from the IMF. In recent times, service sector and manufacturing sector tends to be the most powerful and emerging sectors of the country.
the nominal GDP of the country is $2.07 trillion but it has been facing a deep political and economic chaos for quite some time now. Its unemployment rate is on a rise and the public debt sticks around 132% of the GDP. The only hope in the economic recovery of the country lies in its exports and business investments.
With $1.87 trillion, it is not only the largest but also most populated country in Latin America. Due to commodity the country suffered multiple setbacks and this was accompanied by the political unrest and corruption going inside the country. This not only hampered the business environment but also took a toll on the investments.
Since 2015, the country has been in the 10th position of the top economies of the world and is currently at $1.71 trillion nominal GDP. The service and manufacturing sector is the major constituent of the country. A lot of emphasis is laid on them and hence it has become a crucial aspect of the overall economic growth.
This is the largest country in the world in terms of landmass and has a nominal GDP of around $1.63 trillion. Russia witnessed growth at a pace of 7% and this has been accelerated by commodity boom. In recent times, the country has witnessed a growth of around 1.5% annually.
The nominal GDP of the country is around $1.62 trillion and is the 12th largest economy of the world. The country was able to make a noteworthy growth in the past years to establish itself as one of the industrialized nations of the world. The country also ranked as one of the top world exporters and bears great opportunities in terms of investment.
The nominal GDP of the country is $1.4 trillion and it is the thirteen largest economy of the world. This country has witnessed a long period of recession but is slowing returning to its initial status holding the hands of tourism. Export and increased domestic consumption.
The agricultural sector was in a good position in this country but it has also declined by 3%. The country still remains the highest exporter of pork, wine and olive oil.
The nominal GDP of the country stands at $1.42 trillion and it has grown at quite a healthy pace in the last two decades. This was made possible due to a low rate of unemployment, public debt, inflation, etc. The country is also quite rich in natural resources and is a giant exporter of food items and energy.
This is the second-largest economy in Latin America with a nominal GDP of $1.22 trillion. The country is on a growth rate of 2.7% in recent times where industry and service sectors serve the most to the economy.
This is the largest economy in South-east Asia with a nominal GDP of $1.2 trillion. The economy has depicted great progress in the last two decades. It has recently entered the trillion-dollar club and has shown exceptional progress in its initiative towards poverty reduction.
With a nominal GDP of $912.90 billion, this is the 17th largest economy in the world but is yet to enter the trillion-dollar club. The economy has a good backup in terms of natural resources, tourism and various industries.
This is an oil-based economy and has around 18% of the world’s petroleum reserves. It is the exporter of the largest petroleum and also has rich reserves of other natural resources.
The nominal GDP of the country is $766.43 billion and the country has recently gained a higher share of the middle class. It is expected that the country would join the trillion-dollar club by 2023. The growth rate of the country is around 4.5%.
With a nominal GDP of $703.75 billion, this is the most stable economic market in the world. The standard of living here is quite high. The country has a huge tourism sector and thus a strong financial hold. It also has some great industries like that of luxury watches that adds to the economy of the country in a positive way.