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The 25 largest economies worldwide

2022-12-04 Maliyah Mah

Ranking the world's richest nations

largest economies worldwide

The total value of finished goods and services produced within a nation's borders over a given time period, typically a year, is calculated as the gross domestic product (GDP). The most common method for determining the size of an economy is to use GDP.

The most popular method for measuring GDP is the expenditure method, which totals expenditures on new consumer goods, new investments, government spending, and the value of net exports to determine GDP (exports minus imports).

With the phases of various economic cycles and longer-term economic growth in the background, countries' GDPs fluctuate throughout the majority of the world. However, it's interesting to note that despite these ups and downs, the top economies as measured by GDP don't budge easily from the positions that they hold.

Only Thailand and Indonesia were new to the top 25 economies when compared to the top 25 economies in 2000, according to our research. However, the list has seen a few significant movers.

In 2000, China occupied the 13th spot; as of 2010, it was in second place. Further down the list, Thailand moved up from 32nd to 24th, while Indonesia, one of the two aforementioned newcomers to the list, jumped from 27th largest economy in 2000 to 16th. Switzerland dropped from 18 to 20 in 2021 while Saudi Arabia rose from 20 to 18.
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The most recently available annual data for these nations show that they started to recover from the COVID-19 pandemic, which had a significant impact on economies all over the world. Countries saw record-breaking declines in GDP in 2020 as a result of Covid, which led to slashed energy prices, cratered tourism, decreased trade volumes, and shuttered stores because of quarantines.

“The world’s largest economies contribute almost 80% of worldwide emissions. Africa is not the cause of climate change, but we can be part of the solution, and we intend to do our part.” President Kagame | #G20RomeSummit pic.twitter.com/0FT5sGyCZA
— Presidency | Rwanda (@UrugwiroVillage) October 31, 2021

The vast majority of the top 25 nations saw their GDP grow at a negative rate in 2020, but 2021 GDP figures indicate a recovery from 2020.

KEY LESSONS

The total cost of finished goods and services produced within a nation's borders over a given time period is known as the gross domestic product (GDP).
There are several methods for calculating GDP, including purchasing power parity, nominal GDP, real GDP, and GDP per capita.
China has the second-largest GDP in the world, behind the United States.

GDP measurement

Several common methods of calculating GDP are mentioned in this article, all of which are taken from the World Bank database:

Nominal GDP in Current U.S. Dollars: This method of measuring and comparing GDP between nations is the simplest and most widely used. It uses local prices and currencies that have been converted into U.S. dollars using currency market exchange rates. The order of the nations on the top 25 list was determined using this number.
GDP is adjusted for purchasing power parity (PPP) in current foreign currency In place of using currency exchange rates, this method of comparing nominal GDP among nations adjusts currencies based on the basket of goods that could be purchased there. This is a method of accounting for the disparity in living standards between nations.
GDP Growth: This measures how quickly an economy is expanding by calculating the nominal GDP annual percentage growth rate in local prices and currencies.
GDP per person, in present-day dollars: This is a country's nominal GDP divided by its population. Instead of total economic output, GDP per capita measures how much a nation's economy produces for each individual. This can also serve as a very basic indicator of a country's population's standard of living or income.
Unless otherwise stated, the term "GDP" refers to nominal GDP in current U.S. dollars throughout this list and article.

% Share of the Global Economy

1. The nominal GDP of the United States for 2021 is $23 trillion in current dollars.

GDP PPP Adjusted in Current Foreign Dollars for 2021: $23 trillion 5
2021 Nominal GDP Per Capita in Current U.S. Dollars: $69,287 2021 GDP Growth: 5.7% 6

According to nominal GDP, the US economy is the biggest in the world. The economy's service sector, which includes finance, real estate, insurance, professional and business services, and healthcare, is the largest contributor to that GDP.
Because of its relatively open economy, the United States welcomes foreign direct investment and flexible business investment. It is the leading geopolitical force in the world and produces the majority of the world's reserves, which allows it to maintain a sizable external national debt.

Although the U.S. economy leads the world in many fields of technology, it is increasingly threatened by growing economic inequality, rising costs for healthcare and social safety nets, and deteriorating infrastructure.

GDP is based on a percentage of the global total in 2021.

2. China 2021 Nominal GDP in Current U.S. Dollars: $17.73 trillion

9 GDP in current international dollars, PPP adjusted for 2021: $27.31 trillion
10 GDP Growth in 2021: 8.1%
11 In current dollars, the nominal GDP per person for 2021 is $12,556.
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In terms of PPP, China has the largest nominal GDP and the second-largest nominal GDP in the world. China may be on track to overtake the United States as the world's largest economy by nominal GDP in the years to come with annual growth that consistently exceeds that of the US.

Over the past four decades, China's economy has gradually opened up, leading to significant advancements in both economic growth and living standards. Foreign and domestic trade and investment have exploded as a result of the government's gradual phase-out of collectivized agriculture and industry, increased latitude for market prices, and increased business autonomy.

This, along with an industrial policy that supports domestic manufacturing, has elevated China to the top exporter in the world. Despite these advantages, China faces some significant challenges, such as a rapidly aging population and severe environmental degradation.

3. Japan

2021 Nominal GDP in Current U.S. Dollars: $4.94 trillion
16 2021 PPP Adjusted GDP in Current International Dollars: $5.40 trillion
17 2021 GDP Growth: 1.6%
18 2021 Nominal GDP Per Capita in Current U.S. Dollars: $39,285

Japan is the third-largest economy in the world. Its GDP crossed the $5 trillion mark in 2018. Strong cooperation between government and industry and advanced technological know-how have built Japan’s manufacturing and export-oriented economy. Many major Japanese businesses are organized as networks of interlinked companies known as keiretsu.

After the Lost Decade of the 1990s and the impact of the global Great Recession, Japan has seen an uptick in growth in recent years under the policies of former Prime Minister Shinzo Abe; however, Japan is poor in natural resources and dependent on energy imports, especially after the general shutdown of its nuclear power industry following the 2011 Fukushima disaster. Japan has also struggled with a rapidly aging population.

4. Germany

2021 Nominal GDP in Current U.S. Dollars: $4.22 trillion
22 2021 PPP Adjusted GDP in Current International Dollars: $4.82 trillion
23 2021 GDP Growth: 2.9%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $50,801 25
Fourth among world economies is Germany. Germany is also Europe’s largest economy.
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Germany is a top exporter of vehicles, machinery, chemicals, and other manufactured goods and has a highly skilled workforce. Germany, however, faces some demographic challenges to its economic growth. Its low fertility rate makes replacing its against workforce more difficult, and its high levels of net immigration strain its social welfare system.
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5. The United Kingdom

2021 Nominal GDP in Current U.S. Dollars: $3.19 trillion
29 2021 PPP Adjusted GDP in Current International Dollars: $3.34 trillion 30 2021 GDP Growth: 7.4%
31 2021 Nominal GDP Per Capita in Current U.S. Dollars: $47,334
The United Kingdom has the fifth-largest economy in the world.

The U.K. economy is driven by its large service sector, particularly in finance, insurance, and business services. The nation’s extensive trading relationship with continental Europe has been greatly complicated by the resolution of Brexit subsequent to the 2016 vote to leave the European Union (EU). As of Jan. 31, 2020, the U.K. is officially not a member of the EU, but contentious negotiations over trade relations between the two are ongoing.
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6. India

2021 Nominal GDP in Current U.S. Dollars: $3.17 trillion
2021 PPP Adjusted GDP in Current International Dollars: $10.22 trillion
2021 GDP Growth: 8.9%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $2,277 37
India is the sixth-largest economy in the world. Because of its large population, India has the lowest per-capita GDP on this list.

India’s economy is a mixture of traditional village farming and handicrafts alongside booming modern industry and mechanized agriculture. India is a major exporter of technology services and business outsourcing, and the service sector makes up a large share of its economic output.

Liberalization of India’s economy since the 1990s has boosted economic growth, but inflexible business regulation, widespread corruption, and persistent poverty pose challenges to ongoing expansion.

7. France

2021 Nominal GDP in Current U.S. Dollars: $2.94 trillion
40 2021 PPP Adjusted GDP in Current International Dollars: $3.42 trillion
41 2021 GDP Growth: 7.0%
42 2021 Nominal GDP Per Capita in Current U.S. Dollars: $43,518 43
France has the seventh-largest GDP in the world. Tourism is an important industry, and France receives the most visitors of any country each year.

France is a mixed economy that has many private and semi-private businesses across a diverse range of industries. However, there is still heavy government involvement in certain key sectors, such as defense and electrical power generation.

The French government’s commitment to economic intervention in favor of social equality also creates some challenges for the economy, such as a rigid labor market with high unemployment and a large public debt relative to other advanced economies.

8. Italy 2021 Nominal GDP in Current U.S. Dollars: $2.10 trillion

2021 PPP Adjusted GDP in Current International Dollars: $2.71 trillion

2021 GDP Growth: 6.6%

2021 Nominal GDP Per Capita in Current U.S. Dollars: $35,551

The world’s eighth-largest GDP belongs to Italy. It is also the eurozone’s third-largest economy.

Italy’s economy and level of development vary notably by region, with a more developed, industrial economy in the north and underdeveloped southern regions. Italy faces persistently sluggish economic growth due to a very high public debt, an inefficient court system, a weak banking sector, an inefficient labor market with chronically high youth unemployment, and a large underground economy. 50

9. Canada

2021 Nominal GDP in Current U.S. Dollars: $1.99 trillion
2021 PPP Adjusted GDP in Current International Dollars: $1.99 trillion
52 2021 GDP Growth: 4.6%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $52,051 54
Canada is the world’s ninth-largest economy. Canada has a well-developed energy extraction sector, with the world’s third-largest proven oil reserves. Canada also has impressive manufacturing and service sectors, based mostly in urban areas near the U.S. border.

Canada’s free trade relationship with the United States means that three-quarters of Canadian exports head to the U.S. market each year. Canada’s close ties to the United States mean that it has developed largely in parallel to the world’s largest economy.

10. South Korea

2021 Nominal GDP in Current U.S. Dollars: $1.80 trillion
2021 PPP Adjusted GDP in Current International Dollars: $2.43 trillion
2021 GDP Growth: 4.0%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $34,757
Rounding out the top 10 economies in the world by GDP is South Korea.

South Korea’s economy is a 20th-century success story that is today firmly established as an advanced, industrial economy. Known for its strategy of export-led growth and the dominance of its chaebols (large business conglomerates), South Korea in recent decades has built a network of free trade agreements covering 58 countries that account for more than three-quarters of the world’s GDP. It is a major producer and exporter of electronics, telecommunications equipment, and motor vehicles.
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With this progress, however, South Korea also now faces some of the same challenges that many other advanced economies are dealing with, including slower growth and an aging workforce.
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11. Russia 2021 Nominal GDP in Current U.S. Dollars: $1.78 trillion

2021 PPP Adjusted GDP in Current International Dollars: $4.78 trillion
2021 GDP Growth: 4.8%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $12,172 64
Russia is the world’s 11th-largest economy.

Russia has moved toward a more market-based economy over the 30 years since the collapse of the Soviet Union, but government ownership of and intervention in business is still common. As a leading exporter of oil and gas, as well as other minerals and metals, Russia’s economy is highly sensitive to swings in world commodity prices.
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In 2022, Russia launched an invasion against its neighbor, Ukraine. As a result of its actions, the country was hit by many sanctions and other economic punishments, which are expected to greatly hurt its economy in 2022 and beyond.

12. Brazil 2021 Nominal GDP in Current U.S. Dollars: $1.61 trillion

2021 PPP Adjusted GDP in Current International Dollars: $3.44 trillion
67 2021 GDP Growth: 4.6%

2021 Nominal GDP Per Capita in Current U.S. Dollars: $7,518 69
Brazil is the 12th largest economy in the world and the largest in South America. Brazil’s diversified economy runs the gamut from heavy industries, such as aircraft and automotive production, to mineral and energy resource extraction. It also has a large agricultural sector that makes it a major exporter of coffee and soybeans.

Brazil emerged from a severe recession in 2017 and suffered a series of high-level corruption scandals along the way. In the wake of these events, Brazil instituted a series of major economic reforms intended to rein in public spending and debt, invest in energy infrastructure, lower barriers to foreign investment, and improve labor market conditions.

13. Australia 2021 Nominal GDP in Current U.S.: $1.54 trillion

2021 PPP Adjusted GDP in Current International Dollars: $1.44 trillion
2021 GDP Growth: 1.5%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $59,934 75
Australia is the 13th largest economy in the world 72

Australia combines a relatively open domestic economy with an extensive network of free trade agreements with trading partners all around the Asia-Pacific Rim. This works to the advantage of Australia’s abundant natural resources and agricultural export industries; however, it has also left Australia vulnerable to swings in world commodity demand and prices in energy (coal and natural gas), metals (iron ore and gold), and agricultural products (beef and sheep products).

14. Spain 2021 Nominal GDP in Current U.S. Dollars: $1.28 trillion

2021 PPP Adjusted GDP in Current International Dollars: $1.79 trillion
2021 GDP Growth: 5.1%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $27,056 80
Spain's GDP makes it the 14th largest economy in the world.

Spain’s economy suffered severely during the Great Recession, with unemployment soaring above 25% and a rising national debt despite attempts at fiscal austerity. It has recovered in recent years as moderating inflation and labor costs have encouraged foreign investment and increased the competitiveness of Spain’s exports, including manufactured machinery and foodstuffs. However, political instability has hindered the government’s ability to sustain further economic reforms.

15. Mexico

2021 Nominal GDP in Current U.S. Dollars: $1.29 trillion
2021 PPP Adjusted GDP in Current International Dollars: $2.61 trillion
2021 GDP Growth: 4.8%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $9,926 85
Mexico is the 15th largest economy in the world.

Over the past three decades, Mexico has emerged as a manufacturing economy under a series of free trade agreements with the United States, Canada, and 44 other countries. Many major U.S. manufacturers have integrated supply chains with counterparts or operations in Mexico. Mexico supports a variety of exports, including consumer electronics, vehicles, and auto parts, as well as petroleum and agricultural products.

The international drug trade constitutes an ongoing challenge to Mexico’s development, contributing directly to violence and corruption in the country. Weak legal institutions have made it difficult to regulate and integrate the large informal economy that employs more than half of Mexico’s workforce.

16. Indonesia 2021 Nominal GDP in Current U.S. Dollars: $1.19 trillion

2021 PPP Adjusted GDP in Current International Dollars: $3.57 trillion
2021 GDP Growth: 3.7% 90
2021 Nominal GDP Per Capita in Current U.S. Dollars: $4,291 91
Indonesia is the world’s 16th largest economy.

Indonesia’s economy is the largest economy in Southeast Asia and is based largely on commodity export industries. Major exports include coal and petroleum products, in addition to agricultural commodities suitable for industrial use, such as rubber and palm oil. Indonesia's budget deficit for 2023 is targeted at 2.81% to 2.95% of GDP; however, regional inequality, lack of infrastructure, and governmental corruption remain problems for Indonesia’s rising economy.

17. Netherlands

2021 Nominal GDP in Current U.S. Dollars: $1.03 trillion
2021 PPP Adjusted GDP in Current International Dollars: $1.12 trillion 95
2021 GDP Growth: 5.0% 96
2021 Nominal GDP Per Capita in Current U.S. Dollars: $58,061 97
The Netherlands stands as the 17th largest economy in the world.

The Netherlands is a major commercial transportation hub, with some industrial manufacturing as well as petroleum extraction and processing. It has a highly developed agricultural sector and is the second-largest agricultural exporter in the world. The Netherlands has a large financial services sector, with assets four times the size of the Dutch GDP.

18. Saudi Arabia

2021 Nominal GDP in Current U.S. Dollars: $833.5 billion
2021 PPP Adjusted GDP in Current International Dollars: $1.75 trillion 100
2021 GDP Growth: 3.2%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $23,585 102
Saudi Arabia is the 18th largest economy in the world.

The Saudi economy is heavily based on oil and is the world’s largest oil exporter. The Saudi government owns and operates much of the country’s major industry through its oil company, Aramco; however, with global environmental concerns driving increasing interest in developing non-fossil fuel energy sources, the Saudis are looking to diversify their economy by encouraging more private investment in healthcare and other service industries.
The Saudi government has also begun to at least partially privatize Aramco, listing the company on the Saudi Stock Exchange through an initial public offering (IPO) in December 2019.
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19. Turkey 2021 Nominal GDP in Current U.S. Dollars: $815.27 billion

2021 PPP Adjusted GDP in Current International Dollars: $2.60 trillion
2021 GDP Growth: 11.0%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $9,586
Turkey is the 19th largest economy in the world.

Turkey has a large open economy, with large industrial and service sectors. Major industries include electronics, petrochemicals, and automotive production. Political turmoil and involvement in regional armed conflicts have led to some financial and currency market instability and uncertainty about Turkey’s economic future in recent years.

20. Switzerland

2021 Nominal GDP in Current U.S. Dollars: $812.90 billion
2021 PPP Adjusted GDP in Current International Dollars: $672.54 billion
2021 GDP Growth: 3.7%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $93,457 113
The Alpine nation of Switzerland is the 20th largest economy in the world.

Switzerland has a large service sector, including financial services, and a high-tech manufacturing sector served by a highly skilled labor force. High-quality legal, political, and economic institutions and solid physical infrastructure set the stage for a productive economy with one of the highest per-capita GDPs in the world.

21. Poland

2021 Nominal GDP in Current U.S. Dollars: $674.05 billion
2021 PPP Adjusted GDP in Current International Dollars: $1.42 trillion
2021 GDP Growth: 5.7%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $17,840 118
Poland is the 21st largest economy in the world. Heavy industry, including iron and steel production, machinery manufacturing, shipbuilding, and coal mining, is an important part of Poland’s economy.

Poland’s business-friendly climate and sound macroeconomic policies allowed it to be the only EU country to avoid recession in the aftermath of the 2008 financial crisis. However, inefficient legal and regulatory structures and an aging population are challenges to Poland’s ongoing growth in the future.

22. Sweden

2021 Nominal GDP in Current U.S. Dollars: $627.43 billion
2021 PPP Adjusted GDP in Current International Dollars: $617.90 billion
2021 GDP Growth: 4.8%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $60,239 123
Sweden is the 22nd largest economy in the world. Sweden is a competitive economy, with a high standard of living and a mix of free enterprise alongside a generous social welfare state. Sweden’s manufacturing economy relies heavily on foreign exports, including machinery, motor vehicles, and telecommunications.

Sweden has taken in a large number of new immigrants and thus faces a short- to medium-term challenge with integrating them into Swedish society and its labor market.

23. Belgium

2021 Nominal GDP in Current U.S. Dollars: $599.88 billion
2021 PPP Adjusted GDP in Current International Dollars: $682.88 billion
2021 GDP Growth: 6.2%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $51,767 128
Belgium is the 23rd largest world economy. Belgium is a trade and transport hub that has a diversified economy with a mix of services, manufacturing, and high-tech industry.

Because of its deep integration with the rest of the European economy, Belgium is highly sensitive to swings in the overall economic performance of its neighbors. Belgium faces a high public debt burden relative to its GDP, which can constitute an obstacle to growth.
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24. Thailand 2021 Nominal GDP in Current U.S. Dollars: $505.98 billion

2021 PPP Adjusted GDP in Current International Dollars: $1.34 trillion
2021 GDP Growth: 1.6%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $7,233 133
Thailand is the 24th largest economy in the world.

The Thai economy enjoys relatively high-quality infrastructure, in addition to pro-free-enterprise and pro-investment policies. Thailand is highly dependent on exports, which account for about two-thirds of its GDP. Its main exports include electronics, agricultural products, motor vehicles and parts, and food products. Thailand also has a substantial international tourism industry. Its agricultural sector makes up approximately 10% of its economy but employs about 30% of its workers.
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25. Ireland

2021 Nominal GDP in Current U.S. Dollars: $498.56 billion
2021 PPP Adjusted GDP in Current International Dollars: $535.28 billion
2021 GDP Growth: 13.5%
2021 Nominal GDP Per Capita in Current U.S. Dollars: $99,152 138
Last but certainly not least is Ireland, the 25th largest world economy.

A strong component of Ireland's economy is its export sector from foreign multinational corporations. Ireland has a low corporate tax of 12.5% and a pool of high-tech workers, making it an appealing place for foreign companies to set up shop and attractive for business investment. Due to international pressure, Ireland will implement more stringent tax laws. Its economy is supported by a strong export sector and job growth.
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How Do You Calculate GDP?

Gross domestic product (GDP) is calculated as consumption (consumer spending) + government spending + investment (business spending) + net exports (exports - minus imports).

What Are the Top 5 Largest Economies?

The top-five largest economies in the world are the U.S., China, Japan, Germany, and the U.K., as measured by GDP.

What Country Has the Strongest Economy?

The U.S. has the strongest economy with the largest GDP in the world at $20.95 trillion.

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