There are few countries in the world that have crossed the 5 trillion USD mark, wherein, these countries are spearheading the world 's economic due to their financial excellence.
Now, let us understand the basics first. So speaking of Gross domestic product (GDP), in layman's terms, it can be taken as a parameter that is utilized to determine the wealth of a nation, where the market value of all goods and services produced and sold by the nation in a given time period is measured by the GDP. Here, one should keep in mind that the wealth of the country does not assure the wealth of all citizens living in the country.
So in the world of finance, GDP is an important measure that helps to calculate the economic size of any given country. Having said that, there are numerous ways in which the GDP can be calculated. However, the most common method would be to subtract the total export value from the total import values for a year. Furthermore, with the changing market dynamics and economic policies, the GDP of any given country can be affected directly or indirectly.
Now, let’s delve into the top 10 countries in the world who are spearheading the list in terms of GDP prominence, according to the World Economy Ranking 2024:
The world economic rankings are prepared by the International Monetary Fund and as per the World Economy Rankings 2024 data, the list of countries with the highest GDP amounts to $105 trillion.
Furthermore, if we look at the GDP data analysis for all countries from 2020 to 2026, the world GDP increased from 103.86 to 112.6 trillion in just a span of one year. So to say, such countries will be ranked top according to GDP by 2024. The GDP of India expanded by 5.8% this year and led above the growth rate of 1.9 percent worldwide. The technology, healthcare, finance, and manufacturing sectors contribute to world economy rankings.
Taking first, second and third place respectively, the United States, China and Germany are the world’s top three economies who are leading the list of top 10 economies in the world. However, it is worthy to note that in FY 2024-25, the GDP of India is expected to increase by 6.1%. Adding to it, the country is also expected to contribute 15% of global economic growth which is significant.
|
RANK
|
COUNTRY
|
GDP (in USD Billion)
|
GDP (in USD Thousand)
|
|
1.
|
United States of America
|
26,954
|
80.41
|
|
2.
|
China
|
17,786
|
12.54
|
|
3.
|
Germany
|
4,430
|
52.82
|
|
4.
|
Japan
|
4,231
|
33.95
|
|
5.
|
India
|
3,730
|
2.61
|
|
6.
|
United Kingdom (UK)
|
3,332
|
48.91
|
|
7.
|
France
|
3,052
|
46.32
|
|
8.
|
Italy
|
2,190
|
37.15
|
|
9.
|
Brazil
|
2,132
|
10.41
|
|
10.
|
Canada
|
2,122
|
53.25
|
Let us now understand more about why these countries are being able to hold their respective position:
United States
The United States has been steadfast in maintaining its leading position since the year 1960. So what makes the US the number one economy in the world today? The answer is in its diversified revenue generation which comes from sectors including manufacturing, services, technology and finance. Today, the US stands at the top and has stood the test of time due to its big consumer market, strong ecosystem that encourages entrepreneurship and innovation, and favorable business conditions.
China
China takes the second position in the list because of its remarkable ascent. China's prowess in terms of exports, manufacturing, and substantial investments has given the country the needed upper hand in getting it recognized as one of the most powerful economies in the world today. The country takes pride in its ever growing customer market with expansive workforce, advanced infrastructure, and strong government support.
Germany
As the economic powerhouse of the European economy, Germany takes up the third position in the world economy rankings for 2024. The factors that have helped the country to stand tall in the European region and the world alike is due to its dominant stature as the auto exporter in the world for many years. Germany has been considered one of the leading countries when it concerns chemical, automotive, and machining industries. The country is home to the largest skilled workforce in the world, wherein, the low fertility rate in Germany makes a big move to monetary development and drives the labor force consumption.
Japan
Japan is another promising country who enjoys the fourth position among the largest economies in the world. The country with its strong focus on its exports, while also excelling in the industries such as automotive, engineering, pharmaceuticals and chemicals has been seeing quite the lucrative days. Furthermore, in addition to these aforementioned aspects, the country’s economic strength can also be attributed to its strong investments and skilled workforce in research and development.
India
India has its foot on the accelerator pedal when it comes to driving its economy forward. This is greatly backed by 65 percent of the young population that are under 35 years of age. Today, as per the world economy rankings, India is the 5th largest economy in the world today. And if we talk about the sectors that contribute to India’s GDP include the strong business sector, manufacturing industry, service, IT, among other sectors. Furthermore, as an agriculture intensive nation, this sector has greatly contributed to India’s GDP. Today, India is growing at a rapid pace, wherein, the liberalization of the economy of India in the ’90s is growing to the next level with a strong government backing the country to push forward.
United Kingdom
The UK has been listed in the 6th position as per the world economy rankings. Among the sectors which have been pushing forward the country’s economy have been business, finance, and insurance among others. Furthermore, the majority of UK trades are carried out with European countries. However, from 2020, the UK is no longer a member of the EU. With this, the trade negotiations are continuing among the two.
France
As one of the most sought after places to visit in the world, France’s tourism has greatly contributed to the country’s GDP. Currently, it enjoys the 7th position in terms of world economy rankings (2024). Furthermore, the country’s industries and semi-private businesses are some sectors that have also helped in propelling its GDP.
Italy
As per the world economy rankings for 2024, the 8th position is filled by Italy, wherein, the country’s economic drive is divided into several areas, and every area has a different contribution to GDP. Italy, with its many private business associations, greatly contributes to its GDP. This country is also considered as a home to luxury apparel brands.
Brazil
Boasting rich mineral deposits, vast biodiversity and fertile agricultural lands, Brazil is an abundant country wrt natural resources. Due to this shere fact, the country has secured 9th rank in accordance with the World Economy Rankings 2024.
Canada
To close our list of top 10 economies in the world for 2024, Canada places itself at 10th place. Canada is considered to be the third largest country with respect to the energy deposits with several oil reservoirs. Furthermore, the Gross Domestic Product is also backed by its strong manufacturing sector, coupled with the free trade policies between Canada and the United States of America; further boosting Canada’s economic growth.
