Which are the 10 largest economies of the world?

Emerging market economies may soon take over their Western counterparts, given the international recognition received by them over the past decade. In fact, many Asian countries have already shattered the glass ceiling and revolutionised how the world perceived them.

The past few years have seen China, Japan and India seizing the opportunity to showcase their potential by steadily matching pace with the world’s wealthiest nations. However, tables may turn for certain developing nations as the COVID-19 pandemic has stirred the pot, leaving many nations staggering behind.

Having said that, it would be interesting to see how the biggest nations respond to the changes that the global economy underwent over the previous 18 months. Meanwhile, let us meet the world’s 10 largest economies, which have been identified as per the World Bank’s estimates:

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Which are the 10 largest economies of the world?

1.    United States

No wonder, the US tops the list of the world’s largest economies not just in terms of size but also in terms of GDP. The country is home to the wealthiest individuals on earth and is the birthplace of some of the world’s most successful businesses.

With economic output exceeding US$21 trillion in 2019, the US economy caters to over 20% of the global output. The country’s prowess in the services sector allows the segment to contribute nearly 80 per cent of national output. With that said, the US’ hegemony over global markets is well-known and might keep it on the top of the charts for long.

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2.    China

Coming in second after its global competitor, China has observed a colourful trajectory to success. China’s GDP stood at nearly US$14.3 trillion in 2019, with the country contributing over 16 per cent to the global output. Meanwhile, the past decade has been monumentally significant for China as it marked the entry into global markets.

Increased autonomy to businesses coupled with a move towards flexible market prices has been benefitting China, allowing the country to give tough competition to the US.  Currently, China’s sizeable economy acts as a demand base for international trade with various countries. Moreover, the country’s large population size, which was once deemed its weakness, has now turned into its strength.

3.    Japan

The land of many wonders, Japan is the perfect example of how each cog holds an important position in a wheel. Japanese work ethic is much talked about and has helped make the country one of the top-performing nations in the world. Japan holds the third position in terms of GDP, with its output valuing at US$5.08 trillion in 2019.

The country’s size has so far not constrained it in achieving great strides in terms of economic development. However, the coming years may pose a challenge for the Japanese economy as its working population is shrinking faster than almost every other big nation.

4.    Germany

A stamping ground of innovation and industrial expertise, Germany has been a global leader in the manufacturing domain. With a nominal GDP of about US$3.86 trillion in 2019, Germany has been at the top of the ladder in terms of machinery and vehicular exports.

Being Europe’s largest economy, Germany battled the pandemic more graciously than most developed economies across the globe. However, the country continues to face similar challenges like Japan in terms of its declining working population.

5.    India

India’s economic development has taken solid shape over the past 2 decades, with the sharp ascent in the country’s GDP growth being observed in the late 2000s. In 2019, India’s GDP stood at around US$2.87 trillion, with the nation contributing about 3.27 per cent to the global output.

However, the COVID-19 pandemic appears to have derailed the country’s economic growth. India’s struggle to weather COVID-19 has been met with global empathy and widespread distress. The second wave of coronavirus presented the country not only with a financial challenge but also with an uncontrollable health crisis. Meanwhile, it will be interesting to see how India manages to persevere out of this tough phase.

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6.    United Kingdom

The UK’s economy is dependent upon its resilient service sector as well as the financial sector. The country separated from the European Union in 2020 after a unanimous decision by a poll. This has disrupted not just the political ties between the two countries but has also impacted the trading relationship between them.

In 2019, the UK’s GDP stood at around US$2.83 trillion. Like most other countries, the UK has suffered a major crisis during the pandemic, leaving some economists to believe that the virus has masked the effects of Brexit.

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7.    France

Home to one of the most famous wonders of the world, France has benefitted immensely from the tourists it attracts all over the world. The country recorded a GDP of about $2.72 trillion in 2019.

However, the pandemic has weighed heavily on France like many others, with the country entering a recession. Both manufacturing and exports sectors of the nation suffered a major blow during the pandemic. Nevertheless, things may take a positive turn in the coming years as soon as the country opens its borders to international tourists and the economy stabilises.

8.    Italy

Italy possesses a mix of high-growth and low-growth industries, with economic development varying across regions. The country’s GDP stood at about US$2.0 trillion in 2019, which is quite less than other countries on the list.

The impact of the pandemic on Italy gripped the attention of people from almost every part of the world. The loss of life in the nation due to the virus left behind a gaping hole in the country’s demographics. The easing of coronavirus restrictions may bring back some normalcy in the country, albeit with a drastic loss to the quality of life.

9.    Brazil

After battling a severe economic slowdown in 2017 alongside major roadblocks in the form of corruption scandals, Brazil has emerged as a resilient economy in the past few years. The country recorded a GDP of US$1.84 trillion in 2019.

Brazil’s economic growth has been gathering momentum after a series of economic reforms aimed at harbouring investment and improving labour market conditions.

Despite some relief in the previous years, Brazil’s economy took a hit again after the pandemic struck. The country has an extremely volatile currency, which is highly susceptible to economic changes as seen historically. However, with the help of the above-mentioned reforms, Brazil may emerge from the pandemic better than anticipated.

10. Canada

Last on the list is Canada, which recorded a GDP of around US$1.74 trillion in 2019. Canada is known for its vast range of oil reserves, which have been instilling strength in its energy extraction sector.

The country also holds well-established manufacturing and services sectors, supporting economic growth. Additionally, Canada’s long-running free trade relationship with the US has enabled it to grow at par with the biggest economies in the world.