The economy of every country around the world is calculated based on their economic cycles. For determining the world’s top countries by GDP neither their developmental situation is considered nor is it dependent on the position they hold.
Since 1980 the 17 countries who secured the first 20 positions in the list of world’s top countries by GDP are continuously still running the race.
However, the top 20 countries contribute 79% to the world’s economy and the remaining 173 countries contribute 21-25% to the world’s economy.
The research and the evaluation performed to confirm that these economic cycles determine the growth of the country.
Also, it adds a lot to the entire global wealth. GDP is the market value of any nation in a particular year.
The world’s top countries by GDP are evaluated and determined based on IMF’s (International Monetary Fund) World Economic Outlook Database, October 2019.
The factors which are considered or evaluated on regular intervals for determining the economy of any country are:
- Nominal GDP = Gross domestic product, present prices, U.S. dollars
- GDP based on PPP = Gross domestic product, present prices, purchasing power/strength consistency, international dollars
- Gross domestic product per capita, present rates, U.S. dollars
- GDP based on PPP share of the world total in percentage.
Methods to Measure GDP
There are 3 ways by which the GDP of any country is measured and then compared with the other countries. The 3 ways are:
- Official Exchange Rates.
- Purchasing Power Parity.
- GDP per capita.
Top 20 Countries by GDP
The world’s top 20 countries according to GDP are:
1) United States
The US is well-known for its world’s largest economy.
According to IMF’s ranking list of the world’s top countries by GDP, the US has always acquired the first position.
They have acquired this position last in 1871 and has maintained the same position since then.
In 2018 the size of their economy as per GDP was $20.58 trillion and size is expected to expand its width to $22.32 trillion by 2020.
China is also known as the World’s factory.
China has grown well in the last 20-30 years and acquired the second position in the list.
It is also known as the exporting hub of the world. In 2018 the size of their economy as per GDP was $13.37 trillion.
Alone based on GDP (PPP) China has the largest economy in the world.
However, after combining all the 3 ways the total is reduced, it is because of its huge population. As the GDP per capita is quite lower than in other countries.
Japan has the third-largest economy in the world.
The size of Japan’s economy in 2019 was more than $5 trillion.
Even after facing the recession, massive earthquake the country is still able to hold the third position on the list.
The country is expected to expand its economic size with the help of the Olympics 2020.
Europe’s largest and strongest economic country is Germany.
If we look upon its global position in terms of economic size than it is the fourth largest economic country in the world.
In the year 2019, the economic size of Germany was around $4 trillion. Although the country is trying hard to improvise its economic size in the global list.
India has acquired the fifth position in the global list of strongest economic countries.
India is also known for being one of the fastest-growing trillion-dollar economic countries around the globe.
In 2019, the United Kingdom and France were trespassed by India increasing the size of their economy and making it $2.94 trillion.
6) United Kingdom
In 2019, United Kingdom marked $2.83 trillion GDP and acquired the sixth position in the global list of economic countries.
It is expected to slide down more by 2023.
From 1992 till 2008 the UK economy was rising regularly, however, after this period they face a decline continuously for 5 long years.
They somehow managed to recover it back up to some extent in the last five years.
France is the third-largest economic country of Europe and acquires the seventh position globally.
Being one of the most visited countries in the world, France generated a GDP of $2.78 trillion in the year 2019.
Its GDP per capita is quite high which makes it quite clear that the country offers a good standard of living to its residents and citizens.
Italy is one of the most extended and outstanding countries in Europe.
Despite this fact, the country is facing various economic and political crises.
In the year 2019, the country was able to acquire the eighth position in terms of economic around the globe with a GDP of $2.07 trillion.
However, it is expected to grow and reach $2.26 trillion by the year 2023.
Brazil acquires the ninth position in terms of the economy around the globe.
It is one of the largest and populated countries in Latin America. In the year 2019, the country seizes a GDP of $1.87 trillion.
Canada displaced Russia and acquired the tenth position around the globe in terms of economy.
In the year 2019, the GDP of Canada was $1.74 trillion and was expected to expand its economic size up to $2.13 trillion by the year 2023.
The continuous rise is seen in GDP for the last few years.
Apart from the above mentioned 10 countries, the list continues and includes countries like Russia, South Korea, Spain, Australia, Mexico, Indonesia, Netherlands, Saudi Arabia, Turkey, and Switzerland.
All of these countries have acquired the position starting from 11th position to 20th position in the list of World’s Top Countries by GDP respectively.