GDP (Gross Domestic Product) is the total market value of all final goods and services produced in a country for a given year. In simple words, market exchange rates that are used for the conversion. For a meaningful comparison GDP, PPP (Purchasing Power Parity) that is used to compare all kinds of economies and incomes of people by adjusting for differences in prices in different countries.
The Top 10 Highest GDP Countries
1. United States
The economy of the U.S. remains the largest in the world concerning nominal GDP. The 24.5% of the gross world product, $18.5 trillion U.S. economy is approximate compared to the gross world product. In economic, the U.S is the superpower that is highly advanced that compared concerning technology and infrastructure and with abundant natural resources. Compared to China regarding PPP the U.S. losses the first spot. They have the per capita approximately of $57,294.
China ranks the 2nd place in world’s economy they transformed itself from a centrally-planned closed economy in the year 1970. The economy is entirely based on manufacturing and exporting hub on the years. China ranks in the 1st position among Asian countries their economic growth is increasing 10% averagely. Although China with 1.3 billion population they are the second largest economy on Earth. The savings in terms of nominal GPD remains enormous with china’s $11.3 trillion economies. The China’s economy withstands mainly due to the constant steady growth, a growth of 7% in recent years. The major part of the economy comes from manufacturing sector 45% and agriculture 10%.
Japan’s economy ranks 3rd in terms of nominal GDP, and it slips from the 3rd position to 4th when comparing the GDP by PPP. Japan’s economy is facing hard times from 2008, original stimulus packages with subzero bonds yields and their currency weakness have further strained the economy growth. In recent years they have a growth of 0.5%, and it will increase by 1% in upcoming years approximately in next six years. Their nominal GDP is of $4.73 trillion with a comparison of PPP they have $4.93 trillion, and they have the per capita as $38,893.
Europe’s largest and strongest economy is the Germany’s economy, in the whole world, it ranks on the 4th place regarding nominal GDP. Germany’s economy is mainly based on the exports of machinery, chemicals, household equipment and vehicles. Germany has the skilled labor force, but the economy is facing many sorts of challenges in the upcoming years due to some crisis. Their nominal GDP is $3.49 trillion while regarding PPP is $3.97 trillion.With per capita of $48,189 and the economy has moved the pace of 1-2% in recent years.
5. United Kingdom
The United Kingdom, GDP with $2.65 trillion, is presently the world’s 5th largest country. The GDP regarding PPP per capita is of $42,513. Services mainly drive the economy of UK, and they contribute more than 75% of the present GDP and manufacturing is the second most significant contributor to GDP. Agriculture is not a major contributor to GDP, 60% of the U.K.’s food needs are produced domestically.
The 6th largest economy with a nominal GDP of $2.48 trillion, the most visited country in the world. Its GDP regarding PPP is around $2.73 trillion. It has the low poverty rate and high standard of living. They have the per capita of $42,384. On the research of country’s GDP growth rate may expect to rise over in the next five years.
India ranks 3rd in GDP in terms of PPP at $8.7 trillion, but the nominal GDP moves it to 7th place with $2.25 trillion. The country’s population drags its GDP, per capita downs to $6,658. The GDP is highly dependent on agriculture of 17% and while the industries contribute 26%. The strength of the economy lies in the exports, favorable demographics, high saving rates, and rising middle classes. India stepped forward China as the fastest growing large economy.
On the 8th place of the largest economy is the Italy with $1.8 trillion regarding nominal GDP. The economy suffers from a significant public debt estimated to be 133% of GDP, the economy is also facing high unemployment, but economic growth is on the positive side. The government is working on different measures to improve the countries economy. The GDP measured in PPP for the economy, estimated at $2.22 trillion, its per capita GDP is $36,313.
Brazil ranks the 9th largest economy country by nominal GDP with it’s $1.77 trillion economies. Economy development in sectors such as services 68%, manufacturing 26% and agriculture 6%. Brazil, one of the BRIC countries and has projected to continue to be one of the fastest growing economies in the world.The GDP measured in PPP is $3.1 trillion, while its per capita is $15,211.
Canada pushes Russia out of the top 10 list with a nominal GDP of $1.53 trillion. Highly service oriented economy with solid growth in manufacturing as well as in the oil and petroleum sector. The GDP measured in PPP is $1.7 trillion, and its per capita is $46,239.