The United States has the largest economy in the world with a nominal GDP of $20.4 trillion according to the International Money Fund. This number represents about a quarter of the global economy. China takes up the second spot with a nominal GDP of 14 trillion USD. Japan is the third largest economy in the world representing about 6 percent of the total global economy at a nominal GDP of 5.1 trillion US dollars. European countries occupy the three other consecutive spots in the top ten with Germany, France, and the United Kingdom taking up fourth, fifth and sixth position respectively. India, Brazil, Italy, and Canada complete the top ten spots of the largest economies in the world. Below is an overview of the world’s largest economies in terms of Gross Domestic Product.
Top Economies Of The World
The United States boasts the world's largest economy. The U.S economy is about a quarter of the world’s gross domestic product. This is due to the highly developed infrastructure and abundant natural resources that contribute to the country’s economic dominance.
Since the 1970s, China has transformed its economic model from a centrally-planned economy to a manufacturing and exporting economy. As a result, China has seen an annual economic growth of 10% annually since 1978. China is the second largest economy in the world with a nominal GDP of 14 trillion US dollars.
The nominal GDP of Japan places it in the third position globally. Japan has experienced a mixed fortune when it comes to economic growth with recessionary signs evident since 2008. However, the economy has remained steady in the midst of hard economic times and reports of positive gain in economic growth have been recorded. In 2017, Japan had an economic growth of 1.2 percent.
Germany is the biggest economy in the European Union with an annual nominal GDP of 4.2 trillion US dollars placing it in the fourth position globally. The backbone of Germany’s economy is based on the export of machinery, vehicles, chemicals and household items. The highly skilled labor force makes a huge contribution to the economic growth. In recent years, the refugee crisis, Brexit and related challenges provide a challenge to the strength of the economy.
France is the fifth largest economy in the world with a nominal GDP of 2.93 trillion US dollars. The high standard of living and low poverty levels in France is a true reflection of the high GDP and per capita. The country is among the top exporting nations of the world. In recent years, the high level of unemployment which stands at 9.6 percent poses a considerable challenge to economic growth. However, the unemployment rate is expected to continue going down in the next five years as projected by IMF.
With a GDP of 2.94 trillion US dollars, the United Kingdom is the sixth largest economy in the world and the third largest in Europe. The United Kingdom’s economy is mainly driven by the services sector which contributes 75 percent to the overall economy. The Brexit vote has had implications for the economy of the country with a precedent loss of 2.2-9.5 percent of the economy. This is because of new trade agreements and regulations which may impact the flow of goods and services into the country.
The Future Of Top Economies
Emerging markets will have far-reaching implications for the future of the top economies of the world. This is because consumer markets provide opportunities for economic growth. Tapping into the vast consumer markets will determine the growth rate of a given economy. Additionally, the proper management of environmental resources could set up new leaders on the global economic stage.