Countries with the best economy in the world contribute immensely to the global Gross Domestic Product (GDP) and have the power to influence international trade and world economic policies.
Naija News reports that the GDP is a measure for assessing the magnitude of a nation’s economy, which includes investments, expenditure, and value of exports, goods, and services.
Currency exchange rates also influence the strength of a country’s economy.
When the GDP of a country goes up, it means the economy is doing well. If GDP falls from one quarter to the next, it is a negative growth. Two successive quarters mean the economy is in recession.
There are no identical economies. What defines a country’s economy is based on resources, culture, history, geography, laws, and the country’s evolution.
In this article, you’ll get to know the top 10 countries dominating the world’s economies.
1. United States of America
The Gross Domestic Product (GDP) of the United States is estimated to be about 26.85 trillion dollars, which is the highest in the global economy. Different service sectors such as technology, finance, healthcare, and so on have been major contributors to the country’s total output.
The United States of America has been notable for being one of the top economies in the world. The country’s economy has been able to thrive because of government policies, technologies, and productivity. The United States of America practices capitalism as its economic system — this means the government has no business doing business.
2. China
China is the second world’s largest economy, with a GDP of about 19.37 trillion dollars. This is a country whose economic expansion has become a global phenomenon. China operates a mixed socialist market economy. The main drivers in the economic growth of China are private investment and exports.
As of today, China is the fastest-growing consumer market and accounts for about half of the global consumption of metals. The country plays a crucial role in international trade considering being the largest trading nation in the world. Also, it has the largest foreign exchange reserves worth 3.1 trillion dollars.
3. Japan
Japan has been having significant economic growth since the 1960s. It ranks third with a GDP of 4.41 trillion dollars.
What made Japan one of the top economies in the world is its advanced social market economy, referred to as the “East Asian Model”. By market capitalization, Japan Exchange Group is the world’s fifth-largest stock exchange and the world’s second-largest foreign exchange reserves worth 1.4 trillion dollars.
It is also the world’s fourth-largest consumer market. In terms of automobiles, Japan is the second largest automobile manufacturer in the world. This is a country often ranked among the world’s most innovative countries.
4. Germany
Germany has a GDP of 4.31 trillion dollars; which makes it one of the top economies in the world. Germany is the top economy in Europe, with a highly developed social market economy.
In 2016, Germany had the highest trade worth 310 billion dollars. This feat made Germany one of the largest exporters globally, worth 1.81 trillion goods and services.
Its major exports are machinery, food products, rubber, plastics, electronic products, chemical goods, and basic metals. Germany is the first country to explore renewable energy and a top location for trade fairs
5. India
India’s 3.74 trillion GDP places it among one of the top economies in the world. The economy has been one of the fastest growing in the world’s economies. India’s economy has grown from just a mixed-planned economy to a mixed middle-income developing social market economy.
Right from independence in 1947 to 1991, the Indian government followed the Soviet model in promoting economic policies. India’s GDP is driven by government spending, investment and exports.
In 2022, India became the 6th largest importer and 9th largest exporter, including domestic consumption; the country is the world’s sixth-largest consumer market. The service sector is about 50 per cent of the GDP and is the fastest-growing sector.
6. United Kingdom
Despite the uncertainties that ensued from Brexit, the United Kingdom has managed to be one of the top economies in the world, with a GDP of 3.16 trillion dollars.
The economy of the United Kingdom is very developed in terms of social markets. In the world today, the United Kingdom constitutes 2.3 percent of the world GDP by Purchasing Power Parity (PPP).
The service sector constitutes 82% of the country’s GDP. The technology sector is worth 1 trillion dollars. Going back to history, the United Kingdom was the first country to industrialize in the 18th century.
7. France
France’s GDP is estimated to be 2.92 trillion dollars. Some of them are leading globally; that is automobile, railway, and aerospace. About 70 per cent of the country’s GDP comes from the service sector.
France’s social market economy is highly developed with different strategic sectors. In 2020, France was acknowledged as the largest Foreign Direct Investment recipient in Europe.
Bloomberg Innovation Index 2020 also ranked France as one of the top 10 innovative countries in the world. The International Monetary Fund (IMF) ranked France by GDP per capita in 2023 as the 23rd country with 44, 408 dollars per inhabitant.
8. Italy
Italy is widely known for its influential sectors; economy and agriculture including a highly developed social market economy. It is the eighth largest exporter in the world, with a GDP of 2.284 trillion dollars.
The world’s third largest gold reserve is in Italy and it is a great contributor to the budget of the European Union. Italy boasts of many multinational corporations which serve as the backbone of the industry.
Also, what makes Italy one of the top economies in the world is its significant production of furniture, vehicles, pharmaceuticals, food, and clothing. Italy is the hub for luxury goods and is the third largest in the world.
9. Canada
Canada is the ninth among the top world economies with a 2.09 trillion dollar GDP. The economy is a mixed one; exporting and importing goods worth over 630 billion dollars. Since the beginning of the 20th century, Canada has been growing economically and practically transformed the country from a rural to an urbanized industrial one. The service sector dominates the Canadian economy; and employs three-quarters of the country’s workforce. Canada is a leading exporter of gold, platinoids, uranium, zinc, and nickel. In the aspect of agriculture, it produces canola, wheat, and other grains.
10. Brazil
Brazil ranks tenth among the top economies in the world. The country’s GDP is about 2.08 trillion dollars. The economy is quite diverse, from manufacturing, agriculture, and services.
According to the International Monetary Fund (IMF), the GDP per capita in 2023 was around 10, 413 per inhabitant. Between the years 2000 to 2012, Brazil was one of the fastest-growing economies in the world.
It was able to diversify the economy by focusing on gold, cotton, and sugar. Brazil is one of the largest steel producers and exporters.
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