After the initiation of the Russia-Ukraine war since the beginning of 2022, every other country, whether big or small, realized the importance of being self-dependent in production of critical goods and services. As a result, there is a renewed focus on import substitution and the race to be at the top in terms of GDP has already begun. So in this article, let us discuss the top 10 countries in the world in terms of their Gross Domestic Product (GDP).
Listed below are the top 10 GDP countries in the world
1. The United States of America
The nominal GDP of the USA stands at $20.89 trillion, whereas the per capita GDP stands at $63,413. In terms of purchasing power parity (PPP), the US ranks behind China. USA’s share of global economy is 15.78% in PPP terms. Also, the US Dollar is considered to be the safest currency in the world and most of the international transactions take place in the US Dollar. Currently, the world is staring at a looming recession led by the US and Europe due to record high inflation levels and stagnating growth.
The nominal GDP of China stands at $14.72 trillion, whereas the per capita GDP stands at $10,434. The Chinese economy was one of the fasted growing economies in the world till date and is the manufacturing powerhouse of the world. But the Chinese government’s recent zero-covid policy is taking a toll on business and economy. As a result, growth in the economy is stagnating and companies are moving their manufacturing base out of the country as a part of China plus one strategy.
The nominal GDP of Japan stands at $506 trillion, whereas its per capita GDP stands at $39,048. Japan is the world’s largest electronics goods producer and the 3rd largest automobile manufacturer. Also, Japan has one of the world’s oldest populations. The country is also suffering from persistent deflation and has not been able to bounce back since.
The nominal GDP of Germany stands at $3.85 trillion, whereas its per capita GDP stands at $45,466. Germany is a European nation. Currently, Germany and other European nations are facing a big risk of record high energy prices as the supply of gas from Russia after the Russia-Ukraine war led to supply disruptions. This has led to soaring energy costs for businesses as well, which have led to fears of a recession looming around!
5. United Kingdom
The nominal GDP of United Kingdom stands at $2.76 trillion, whereas the per capita GDP stands at $39,229. Currently, the UK is going through a political turmoil after the newly elected Prime Minister Liz Truss failed to handle the already crippling British economy and resigned after 45-day tenure. The Pound has also fallen sharply since then. The UK is another major economy facing fears of recession.
The nominal GDP of India stands at $2.66 trillion, whereas the per capita income stands at $1,877. India is an emerging superpower in the world. The Indian government has a renewed focus on manufacturing goods and services in-house and to reduce dependence on imports. It is attracting investments from all over the world through its Production Linked Incentive (PLI) scheme. Also, many multinational giants are shifting their production base to India as a part of China plus one strategy. These key policy changes along with the formalization of the economy are making India a favorite spot for corporates to conduct business here!
The nominal GDP of France stands at $2.63 trillion, whereas the per capita GDP stands at $39,257. France has a thriving tourism industry. France also ranked 32 in terms of the World Bank’s ease of doing business index. The country contributes 3.3% to the world GDP. The economy of France is dominated by service sector. Paris has been ranked as the 2nd most attractive global city in the world in 2019
The nominal GDP of Italy stands at $1.88 trillion, whereas the per capita GDP stood at $30,657. Italy is the 3rd largest economy in the Eurozone. Italy is also the eighth largest exporter in the world with $611 billion worth of exports in 2021. Italy enjoys a very high standard of living.
The nominal GDP of Canada stands at $1.64 trillion, whereas the per capita GDP stands at $42,080. Canada’s economy is majorly service based, and is a mixed market economy. Canada also has the third highest value of natural resources. It is also the 4th largest exporter of crude oil. Canada is also counted as one of the least corrupt countries in the world.
10. South Korea
The nominal GDP of South Korea stands at $1.63 trillion, whereas the per capita GDP stands at $30,644. The service sector forms 60% of the country’s GDP. It is a mixed-market economy. As of 2016, the country had 14.4% of its population below poverty line.
This was all about the top 10 countries in the world by GDP terms. In the current times, every country is first ensuring self-sufficiency in terms of resources rather than helping others first. For example, India-Russia relationship is currently stronger than ever post the Russia-Ukraine war! This is the new globalized world!