Money is the driving factor for this world and that is why; the more money you have the more power you own. Same is the case for the countries as well. The stronger economy represents the power of the country. It is important to look at the Gross Domestic Product rate or GDP in order to understand the underlying condition of the economic health of that country. GDP is the indicator of the total value of the produced goods of a country on a specific year. Based on the data of 2019-2020, here is the list of World’s largest economies-
- United States:
Quite obviously, United States runs the healthiest economy in the world with a nominal GDP of USD 21 trillion in 2019. US economy is one of the biggest contributors in the world economy- twenty percent of the world economy relies on US outputs. The closest competitor is undoubtedly China but China has still a long way to go in order to reach US. Due to the extremely advanced technological support and amazing service the biggest corporations in the world invest their money in US economy. This fact alone affects almost eighty percent of the total output of US economy.
China, the biggest competitor to US has grown huge in the last decades and the growth is continuing to this day. Although the nominal GDP for this country is 9.2 trillion, with the improved technologies and better service facilities China is attracting more investments than ever. Thus, the growth of Chinese economy cannot be overlooked at all.
With the 5.2 trillion nominal GDP value, Japan owns the third position in this list. The growth of Japanese economy was at its best during the second half of the twentieth century- especially during the 1960s to 1980s. However, that rapid growth stopped during the last decade of twentieth century. That is why; Japan has been taking impressive steps in order to rejuvenate its economy once again and be back on the game for the first position.
Although the economy of Germany witnessed a slowdown during 2009 economic crisis, Germany has been doing its best since then. As a result, the economy of the country has improved a lot in the last few years and has achieved a well-deserved fourth position in this list. The nominal GDP value is USD 4.2 trillion.
- United Kingdom:
United Kingdom is the fifth largest economy all around the world with USD 3.2 trillion GDP. Since 1999, the economy of UK has been growing consistently. The rate of growth was 2.8% between 1999 and 2008. However, BREXIT might negatively affect the economy of UK in the next couple of years. In order to keep its position intact in the largest economies around the world, United Kingdom needs to manage the upcoming economic challenges wisely.
India, France, Brazil, Canada are the next ones in this list. It is necessary to have knowledge about the largest global economies in order to understand the conditions of the world economy in a better way.