World Economy Ranking 2023: The entire value of finished goods and services produced within a nation’s boundaries over a given time period, often a year, is calculated as the gross domestic product (GDP). Utilizing a country’s GDP is the most popular way to assess its economic size and impact on the global economy.
The expenditure method, which adds up expenditures on new investments, new consumer goods, government spending, and the value of net exports to compute GDP, is the most widely used method.
With longer-term economic growth in the background, most of the world experiences periodic fluctuations in GDP. What’s interesting to note, though, is that despite these ups and downs, the top economies as measured by GDP don’t budge easily from the positions that they hold.
Let’s see the World Economy Ranking of 2023 here –
World Economy Ranking 2023
1. United States – Largest World Economy
- 2022 Nominal GDP in US dollars as of right now: $25.46 trillion
- PPP Adjusted GDP in US dollars as of 2022: $25.46 trillion
- In current US dollars, the nominal GDP per capita for 2022 is $76,398.
In terms of nominal GDP, the US economy is the biggest in the world. The economy’s service sector—which includes real estate, insurance, healthcare, professional and commercial services, and banking—contributes the most to that GDP.
Because of its relatively open economy, the United States welcomes both flexible business investment and foreign direct investment. As the producer of the world’s principal reserve currency, it is able to sustain a sizable external national debt and holds the position of dominating geopolitical power in the world.
Although the U.S. economy leads the world in many fields when it comes to technology, it is increasingly vulnerable to threats from growing economic disparity, rising healthcare and social security expenditures, and decaying infrastructure.
2. China – Second Largest World Economy
- 2022 Nominal GDP in US dollars as of right now: $17.96 trillion
- 30.33 trillion is the 2022 PPP Adjusted GDP in current international dollars.
- In current US dollars, the nominal GDP per capita for 2022 is $12,720.
China possesses the greatest nominal GDP in terms of PPP and the second-largest nominal GDP in current USD worldwide. Due to the historical expansion of its economy over the past 20 years, some economists have theorized that China’s GDP may eventually surpass that of the United States as the largest in the world.
Over the past 40 years, as China’s economy has gradually opened up, both economic growth and living standards have significantly increased. Trade and investment, both domestically and internationally, have surged as a result of the government’s progressive elimination of collectivized agriculture and industry, enhanced corporate autonomy, and enabled more market price freedom.
This, together with an industrial policy that promotes homegrown production, has made China the top exporter in the world. China has halted its growth despite these advantages because of a number of serious issues, including a fast aging population and severe environmental deterioration.
3. Japan – Third Largest World Economy
- Nominal GDP for 2022 is $4.23 trillion in current dollars.
- GDP PPP Adjusted in Current Foreign Dollars for 2022: $5.7 trillion
- The nominal GDP per capita in 2022 is $33,815 in current dollars.
The third-largest economy in the world is that of Japan. Japan’s manufacturing and export-focused economy was founded on strong government-industry collaboration and cutting-edge technological know-how. The majority of significant Japanese corporations are set up as keiretsu, which are networks of connected firms.
Under the policies of former Prime Minister Shinzo Abe, Japan has experienced an increase in growth in recent years after the Lost Decade of the 1990s and the effects of the global Great Recession; however, Japan is resource-poor and dependent on energy imports, especially since its nuclear power industry was shut down completely in the wake of the 2011 Fukushima disaster. Japan has similarly battled with a population that is aging quickly.
4. Germany- Fourth Largest World Economy
- Nominal GDP for 2022 is $4.07 trillion in current dollars.
- GDP PPP Adjusted for 2022 in current foreign currency: $5.31 trillion
- The nominal GDP per capita in 2022 is $48,432 in current dollars.
Germany is the world’s fourth-largest economy. The biggest economy in Europe is also Germany.
Germany has a highly qualified workforce and is one of the leading exporters of manufactured goods, including chemicals, machinery, and automobiles. Germany’s economic expansion, however, confronts some demographic obstacles. Its high levels of net immigration strain its social safety system, and its low birth rate makes replacing its elderly workforce more challenging.
5. India – Fifth Largest World Economy
- Current US Dollar Nominal GDP for 2022: $3.39 trillion
- PPP-Adjusted GDP in US dollars as of 2022: $11.87 trillion
- In current U.S. dollars, the nominal GDP per capita for 2022 is $2,388.
India’s economy is the world’s fifth largest. India has the lowest per-capita GDP on this list due to its enormous population.
India’s economy is based on a combination of modern industry, mechanized agriculture, and traditional village farming and handicrafts. India is a significant supplier of business outsourcing and technological services, and a sizable portion of its GDP comes from the service sector.
India’s economy has grown more rapidly since economic liberalization took place in the 1990s, but barriers to continued progress include rigid business regulations, pervasive corruption, and enduring poverty.
6. United Kingdom – Sixth Largest World Economy
- The nominal GDP for 2022 is $3.07 trillion in current dollars.
- GDP in current international dollars, PPP adjusted for 2022: $3.66 trillion
- The nominal GDP per capita in 2022 is $45,850 in current dollars.
The sixth-largest World Economy is that of the United Kingdom.
The U.K. economy is supported by a sizable service industry, especially in the areas of business, insurance, and financial services. The settlement of Brexit following the 2016 decision to leave the European Union (EU) has significantly affected the country’s considerable commercial connection with continental Europe. The U.K. will no longer be an official member of the EU as of December 31, 2020, but difficult talks about its trade relations are still going on.
7. France – Seventh Largest World Economy
- $2.78 trillion is the 2022 nominal GDP in current US dollars.
- PPP Adjusted GDP in US dollars as of 2022: $3.77 trillion
- In current US dollars, the nominal GDP per capita for 2022 is $40,963.
The GDP of France is the seventh highest in the world. France is the nation with the greatest annual visitor numbers in the tourism sector.
France has a mixed economy with a large number of private and semi-private companies operating in a variety of sectors. Nonetheless, the government continues to have a major role in a number of important industries, like the production of electricity and military.
A stiff labor market with high unemployment and a huge public debt in comparison to other advanced countries are two issues that the French economy faces as a result of the government’s commitment to economic intervention in favor of social equality.
8. Italy – Eighth Largest World Economy
Italy, the third-biggest economy in the EU, has a highly developed market. The country is renowned for its hardworking and fiercely competitive agriculture sector as well as its powerful and innovative business sector.
The industrialized, more developed economy of northern Italy contrasts sharply with the less developed economy of the country’s southern regions. Due to a number of factors, including a high level of public debt, a dysfunctional legal system, a weak banking industry, an ineffective labor market with continuously high rates of youth unemployment, and a sizable black market, Italy has consistently slow economic growth.
9. Canada – Ninth Largest World Economy
Canada has the ninth-largest economy in the world. It possesses the third-largest proven oil reserves in the world and a thriving energy extraction industry. Also, Canada boasts strong manufacturing and service industries, the most of which are concentrated in cities close to the US border.
Because of its free trade agreements, the United States purchases three-quarters of Canada’s annual exports. Canada’s economy has grown substantially in tandem with the largest economy in the world due to its close ties to the United States.
Oil, gas, minerals, and lumber are just a few of the rich natural resources that are vital to Canada’s economy. In addition, the country has a strong manufacturing sector, a booming services sector, and a strong commitment to promoting innovation and technical breakthroughs.
10. Brazil – Tenth Largest World Economy
South America’s largest economy, Brazil’s is ranked tenth in the world. Brazil has a diverse economy that includes everything from the exploitation of minerals and energy resources to heavy industries like the manufacture of automobiles and airplanes. Its sizable agricultural industry also contributes to its prominence as a major exporter of soybeans and coffee.
In 2017, Brazil came out of a deep recession, accompanied by a number of high-profile corruption scandals. Following these occurrences, Brazil implemented a number of significant economic reforms aimed at reducing state debt and spending, bolstering energy infrastructure, removing obstacles to international investment, and enhancing labor market conditions.
Brazil’s economy is diverse, with industries including mining, manufacturing, services, and agriculture. Interestingly, it is a well-known worldwide center for exporting and producing agricultural products. Brazil’s economy is shaped by a number of factors, such as the price of commodities, domestic demand, and the development of infrastructure.
World Economy Ranking Conclusion
The gross domestic product, or GDP, is a measure of a country’s overall output and a proxy for the size and health of its economy. In order to assess the state of the economy and identify the steps that must be taken to achieve stable growth, nations regularly track GDP growth.
The populations, political systems, trade agreements, and demography of the nations on this list all affect how well their economies and, consequently, GDP function. A country’s GDP can increase as long as it takes steps to lessen corruption, open its markets, and make use of its resources, both natural and technological.
FAQs (World Economy Ranking)
How are the World Economies ranked ?
Based on data from the IMF (International Monetary Fund), the world’s top 10 economies are listed according to their GDP. The total value of goods and services generated inside the borders of each nation in a certain year is the basis for these rankings. GDP is a crucial measure of a nation’s economic health and has significant influence over international markets and policy.
What is GDP and how is it calculated ?
The entire worth of all goods and services produced inside a nation’s boundaries over a given time period—typically a financial year—is measured by the GDP, or gross domestic product. The value of investment, consumption, government spending, and net exports—that is, exports less imports—are added up to determine it. This computation aids in the analysis of economic growth and development by economists and policymakers by giving a broad overview of a nation’s economic activities.
What Are the Top 5 Largest Economies ?
According to GDP, the United States, China, Japan, Germany, and India are the world’s top five economies.
Which Asian country has the biggest economy?
China, with a nominal GDP of more than $19,374 billion in 2023, has the largest economy in Asia. In terms of GDP, China is followed in Asia by Japan and India.
Which are the top 10 largest economies in the world ?
The following are the top ten richest nations in the world (World Economy Ranking) by GDP per capita: