Top 20 Countries With The World's Biggest Economies 2023 by GDP

Jenny Barry January 01, 2023 | 21:57

Which country has the largest economy in the world in 2023 and next five years? Will the post-Covid pandemic and global economic crisis upset the position of the Top 20 largest global economies?

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Biggest Economies in the World by GDP

Overview: Largest Economies in the World 2023

According to statistics of gross domestic product (GDP - updated in January 2023) from the World Bank in, the US is still the leading power in the world, followed by Asian countries, China, and Japan.

Gross domestic product (GDP) is the market value of all final goods and services produced within a country in a year, representing the size of a country.

Nominal GDP converts the value of goods and services at exchange rates between currencies, while purchasing power parity (PPP) GDP takes into account differences in the cost of living across countries.

According to IMF statistics, the US continues to be the world's largest economy with a GDP of more than $ 25 trillion in 2022, followed by China with about $ 18.3 trillion and Japan with $ 4.3 trillion.

In terms of GDP at purchasing power parity (PPP), China has surpassed the US since 2014. But when measured by current price GDP, the US is still outperforming.

Below are the Top 20 economies with the largest total GDP in the world with the latest updated data as of January 2023.

According to the World Bank, the top 10 largest economies in the world have a total GDP of about 65.1 trillion USD, accounting for about two thirds of the global GDP (96.1 billion USD).

1.United States

GDP: $23 trillion

After overtaking Britain around the end of the 19th century, the US held the position of the world's largest economy for more than a century.

The United States has the world’s largest economy with a latest GDP of $23 trillion. In addition to having the financial center of the world in New York City, the United States has the innovation center of the world in Silicon Valley. Furthermore, the country has the world’s best military, the world’s most dominant reserve currency, and the world’s most leading universities.

According to economists, a number of factors, such as the business environment, advanced research universities, and favorable regulatory environment, have contributed to the success of the United States and will help the country stay in the top tier. list of leading economies in the world

2. China

GDP: $17.73 trillion

Since the 2008 financial crisis, China has been the largest contributor to global growth and is one of the fastest growing economies of the 21st century. The gap between US GDP and China's narrowed significantly in recent years and the country is projected to overtake the US in the future.

With a GDP of $17.73 trillion in 2021, China has the second largest economy in the world in terms of nominal GDP. In terms of GDP, PPP, however, China has the largest economy in the world given goods and services on average cost less in the country than in the United States.

Despite its large overall economic size, China's GDP per capita is only around the world average, at more than $10,000 per person.

3. Japan

GDP: $4.94 trillion

Ranked as one of the most innovative countries, Japan is the world's largest producer of electronic goods and the world's third largest automaker with brands such as Toyota, Honda or Nissan.

In addition, the country's electronics industry is also a major contributor to the $4.9 trillion economy, with businesses like Sony, Panasonic, and Toshiba.

Japan has the third largest economy in the world with a 2021 GDP of $4.94 trillion.

Japan's economy regains its "golden age"

The Japanese government still maintains a "super-easy" monetary policy amid the highest inflation in four decades. This way of operating is quite strange but not without foundation.

After the new cabinet in Japan was established, Prime Minister Fumio Kishida launched the initiative of "new capitalism with a Japanese form".

Japan needs a large amount of money pumped into the market through two tools, raising taxes and issuing government bonds; while maintaining the basic interest rate at a super low level, making it easy for people and businesses to access.

Mr. Kishida and his cabinet set a goal of creating a 10-fold increase in the number of start-ups within the next 5 years and 1 million jobs; at the same time, promoting the private sector to invest 1 trillion USD in the direction of a "green" economy, as well as increasing spending on defense.

4. Germany

Top 20 Countries With The World's Biggest Economies - 2023 and Next 5 Years by GDP

Germany - Biggest Economy in the World - by GDP

GDP: $4.22 trillion

Germany has the largest economy in Europe with a GDP of $4.22 trillion.

Service sectors, including telecommunications, healthcare and tourism are the biggest drivers of the economy.

In addition, Germany is also heavily dependent on the export of high-quality goods in sectors including automobiles (BMW, Mercedes-Benz, Volkswagen), chemicals (BASF), and pharmaceuticals (Bayer).

According to the WTO, Germany's export turnover is only behind China and the US, its trade surplus ranks second only after China. Germany is the most important member of the European Union, a region with a combined GDP of more than $17 trillion.

5.United Kingdom

GDP: $3.19 trillion

The United Kingdom has one of the leading financial centers in the world in London which is the home to many leading investment banks in terms of their business in Europe.

The UK is the second largest economy in Europe with a size of $3.2 trillion and is considered the most globalized in the world. The UK ranks highly in the annual Global Competitiveness Report and the World Bank Ease of Doing Business Rankings.

Britain was the first country in the world to industrialize in the 18th century. Technological superiority and a massive colonial system helped Britain lead the world in GDP until the late 19th and early 20th centuries, when the country was overtaken by the US.

The economies of Japan, UK and Germany will drop in rank

In a newly published study, economists at the financial group Goldman Sachs Group make a series of forecasts about the world economy over the next half century.

According to forecasts, some emerging economies such as Indonesia and Nigeria are forecast to be in the top 5 of the world's largest economies by 2075, although neither of these two countries is in the current top 15. Meanwhile, Japan is forecast to drop from 3rd to 12th, and the UK from 6th to 10th. Germany, currently ranked 4th in the world, is forecast to drop to 9th by next year. year 2075.

6.India

GDP: $3.17 trillion

India has a nominal GDP of $3.17 trillion and a GDP based on PPP of $7.33 trillion in the same year.

Since 2000, the size of the Indian economy has increased sixfold, becoming one of the fastest growing economies in the world. Multi

India has one of the fastest growing economies in the world, growing sixfold in size since 2000. As a developing country, the majority of its population is still employed in agriculture, with Main products include rice, cotton, tea, milk, seafood….

In recent years, India has been one of the fastest major economies in the world with expected growth of 7% this year and 7.2% next year.

The economies of China and India overtook the US

Goldman Sachs economists forecast China's gross domestic product (GDP) will surpass that of the US around 2035, while India's GDP will overtake that of the US around 2075.

China alone is rapidly catching up with the US in terms of GDP, rapidly growing from a size equivalent to only 12% of US GDP in 200 to 77% in 2021.

Economists predict the US may not repeat the relatively large gains of the past decade and the dollar's strength will also fade over the next 10 years.

7.France

GDP: $2.94 trillion

France has the second largest economy in Europe with a GDP of $2.94 trillion.

France is the most visited destination in the world and has a thriving tourism industry. Besides, the service sector accounts for nearly 80% of the French economy.

The manufacturing industry of this country is also respectable with enterprises such as L'Oreal, LVMH. The agricultural sector of France is also very developed with high quality products such as wine.

8.Italy

GDP: $2.1 trillion

Italy's economy is the 3rd largest in the euro area and the 8th largest in the world by GDP. Along with a powerful economy, Italy is one of the most influential countries in Europe as a key member of the Eurozone, EU, G7, OECD and G20.

Italy's diversified economic growth is driven by the consumer goods industry. The northern regions of Italy have industries such as automobiles and aerospace, while the south is often focused on agriculture or manufacturing sectors such as textiles.

9.Canada

GDP: $1.99 trillion

Canada has the third largest oil reserves in the world, is the fourth largest exporter of crude oil and the fifth largest natural gas in the world. The country is also famous for its precious metal mining and is home to some of the world's largest gold mining companies.

In addition to exploiting natural resources, Canada also has a sizable manufacturing sector, in which the automobile and aircraft industries are particularly important.

A highly educated workforce, multiculturalism, multilingualism, thriving economy and government support for starting a business make Canada a preferred investment destination. prefer.

10. South Korea

GDP: $1.8 trillion

With a GDP size of 1.8 trillion USD, Korea has surpassed Russia (1.7 trillion USD) to enter the list of 10 strongest economies in the world.

Korea is considered a developing country with sweeping economic reforms. The country's economy entered a period of rapid growth, around 10% annually for more than 30 years. The country's tech industry is a big contributor to that growth, with Samsung being the world's largest maker of mobile phones.

11.Russia

Top 20 Countries With The World's Biggest Economies 2023 by GDP

Russia's economy will only shrink 2% in 2022 despite sanctions

GDP: $1.78 trillion

Russia has a nominal GDP of $1.78 trillion and a GDP, PPP of $4.79 trillion. Given it has considerable oil and gas reserves, the country is an energy superpower that also has substantial land resources.

Russia's First Deputy Prime Minister Andrey Belousov thinks that the new year of 2023 will be much easier for the Russian economy than 2022, when the country is subject to unprecedented Western sanctions.

The Russian Ministry of Economic Development forecasts that Russia's GDP will shrink by 2.9% in 2022 and fall by 0.8% in 2023. The Central Bank of Russia forecasts a GDP decline of 3-3.5 percent in 2022 and 1. -4% in 2023.

12.Brazil

GDP: $1.61 trillion

Brazil's economy is forecast to face major challenges in 2023 as it must balance strengthening social programs and curbing spending to prevent public debt from rising.

Brazil ranks #12 on our list of Countries by GDP: 30 Largest Economies in the World with a 2021 GDP of $1.61 trillion. Given the average cost of goods and services in the country cost less than it does in the United States, Brazil has a larger economy when adjusting for the differences in purchasing power with a GDP, PPP of $3.44 trillion in the same year.

In 2022, Brazil's economic growth will reach nearly 3%. In 2023, the Brazilian economy is only forecast to grow by 1% due to facing many challenges.

13.Australia

GDP: $1.54 trillion

Australia has a fully developed economy with a GDP per capita of $59,934.13 in 2021, making it one of the wealthiest nations per capita in the Asian Pacific. With a GDP of $1.54 trillion in 2021, Australia also has one of the largest economies in the Asian Pacific.

14.Spain

GDP: $1.43 trillion

Spain has the fourth largest economy in the EU with a 2021 GDP of $1.43 trillion. In 2022, Spain's economy likely expanded over 4.4% given government estimates. Although inflation is a headwind, economists think the country's economy will expand by another 1.3% in 2023 and 1.7% in 2024.

15.Mexico

GDP: $1.29 trillion

Mexico has a nominal GDP of $1.29 trillion in 2021 and a GDP, PPP of $2.61 trillion in 2021. Given its population, resources, and proximity to the United States, the country also has substantial potential to expand its economy considerably in the future.

16. Indonesia

GDP: $1.19 trillion

Indonesia is a country with substantial potential given its population, resources, and geography. In 2021, the country had a nominal GDP of $1.19 trillion and a GDP, PPP of $3.57 trillion. Given its potential, Indonesia's economy could expand considerably in the next coming decades.

17. Netherlands

GDP: $1.02 trillion

The Netherlands has one of Europe's larger economies with a GDP of slightly over $1 trillion last year. Given its developed economy, the country also has one of the higher incomes on average in the EU with a GDP per capita of $58,061 in 2021.

18. Saudi Arabia

GDP: $833.54 billion

Saudi Arabia is an energy superpower that had a GDP of $833.54 billion for 2021. Considering oil and gas prices have increased substantially this year given the Russia Ukraine war, the country's GDP will likely be higher for 2022. In the third quarter, the country's GDP rose 8.8% year over year.

19. Turkey

GDP: $815.27 billion

Turkey had a GDP of $815.27 billion in 2021 and a GDP, PPP of $2.59 trillion in the same year. Given the large difference between the two, there is potential for Turkey's economy to grow considerably in the future. In 2022, economists estimate the country's economy will expand by 5%.

20. Switzerland

GDP: $812.87 billion

With a GDP per capita of $93,457.44, Switzerland ranks as one of the wealthiest nations by income. Given its GDP of $812.87 billion in 2021, Switzerland also has one of the larger economies in the world.