The economic cycle can be a roller-coaster, and countries shift around quite a bit to trump each other, in the race to become the most powerful prudence.
The economic prowess of a country can be compared via the GDP or Gross Domestic Product, as well as fluctuations in the value of national currencies. GDP basically denotes the value of all goods and services the nation has produced in a year.
So without further adieu, let's start off with our list.
The top 10 largest economies in the world and their GDPs.
And here is a no-brainer!
The USA has been bagging this position for the last 149 years and the major reason for USA's advancement is because of the top-notch infrastructure, a global labor force, and sophisticated industrial policies.
Although the US economy is unquestionably the most powerful, according to a NASDAQ report, the unemployment rate has hit almost 3%. With various government policies surrounding immigrants and trade wars imposed by the country, it will be quite interesting to see where this superpower leads its economy in the coming years.
As of now the trade war between US and China is not only pulling the economy of these two down but also a lot of other countries who have amicable business relations with either party. The IMF estimates the US economy to slither down by 1.7% in 2021.
China is the fastest-growing trillion-dollar economy in the world. An interesting thing to note is that although the USA beats China when it comes to nominal GDP, China emerges in the top spot when the PPP (Purchasing Power Parity) is compared. Where the PPP of China is $27.31 trillion, the USA is only $21.44 trillion.
China bags the second spot due to its brimming manufacturing industry. And is a global exporter for various countries. Its success in the industry can be attributed to its strong labor force and the country is often referred to as the 'World's Factory.
30 years ago, China was the 7th largest economy in the world, but since it started reforming its market, in the late 1970s, the country has seen an average growth of 10% annually. At this juncture, certain countries have given hints to reduce trade ties with China. How it will impact this super economy, only time will tell.
Japan is a country that has risen above national disaster, economic turmoil, and public debt. It had a very stable economy from 1960 to 1980, after which it spiraled down in 1990.
The great recession of 2008 saw an economic downturn in the country, but once they started to recover, the nation was marred yet again by an earthquake.
After the current President, Shinzo Abe came into power, an initiative to revive the economy, popularly known as 'Abenomics' came into existence and in 2019, the economy touched 5 trillion. It was estimated that the 2020 Tokyo Olympics would be a boost to the country, however that has been postponed to 2021.
As of now, Japan is said to have a healthy GDP.
Germany is Europe's largest economy and till the 1980s, the third-largest economy in the world. According to the World Bank, approximately 50% of the economy revolves around exporting, and therefore it is more controlled by global recessions. In fact, in 2009, the economy went down by over 5%.
Recently, more halted trade, processes, and the exit of Britain from the EU have posed challenges to this country's growth. However, it is set to grow by 1.1% in 2020.
Surprised to see India with the big fishes?
India is often known as the golden spot of the growing economy. Its growth story started only in the early 1990s and now it is the fastest-growing economy in the world, powered by the manufacturing and service sectors.
However, recently it has seen a downturn with national financial issues like declining credit growth and stagnant investments. According to the IMF, India is set to grow by 5.8% in 2020.
It's not a surprise that in the late 19th and early 20th centuries, the economy of the UK was up and running, thanks to colonialism.
World War 2 saw this superpower strain economically, but eventually, it gained momentum. In recent times, the economy had been on an up-trend, barring the 2008 financial crisis, which pulled the economy down by 6%. Currently, Brexit poses a threat to the global economy. The service sector which contributes to approximately 75% of its GDP, may face backlash.
The second-largest economy in the world, France has an incredible standard of living, with a PPP of $2.96 trillion, approximately. However, the World Bank published that unemployment has been soaring in the country and is at a low of around 10%.
Additionally, tourism is a revenue for the country, which is now more or less stagnant.
Currently, Italy has been facing political turmoil, which has been enhanced by the pandemic. On the bright side however, steady export keeps the economy going. In 2019, the economy grew by 1%.
Brazil is the largest Latin American country and the ninth-largest economy in the world. Although natural disasters (amazon bush fire) and internal political turmoil have hampered the economy, the nation is set to grow at around 2.5%, according to the IMF.
In 2015, Canada beat Russia to grab the 10th spot. Canada, as of now is growing steadily and is estimated to touch 2 trillion by 2023.
It is working towards bettering its economy by curbing unemployment and allocating money towards sectors like manufacturing. In 2019, the economy grew by approximately 2%.
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