Modified:2022-10-21  Published:2022-10-21  Views: 213
Author: n.paul
Published in: Geography
Top 10 Richest Countries Of The World By GDP As Of 2022

There are several methods of measuring the wealth and strength of economy of the 195 nations of the world. One of these methods are by measuring GDP, Gross Domestic Products. GDP is an estimated total value of finished goods that stays within the nation’s borders during a specific amount of period. In simpler words, GDP is the key of measuring the size of a nation’s economy. The common method of measuring GDP is by using the expenditure method. The mentioned method is measured by calculating the sum of spending on new consumer goods, spending on new investment, value of net exports and government spending.

In this regard it needs to be stated that GDP is a factor to fluctuate a lot based on the different economic cycle. However, the biggest economies, the richest countries based on GDP, do not easily move from their spot. This article contains a list of top 10 counties with the largest economy based on GDP. The list is constructed with 2021 data. In 2020 there was a massive backdrop in GDP of almost every nation due to the invasion of Covid-19. The 2021 data shows that the countries have recovered a lot, however, the GDP remains negative for most of the nations.

Keys to measure GDP

There are some of the key factors that determines the calculation of GDP. These factors are important to learn about before we dive in the nations. It will help the readers in understanding why the countries are ranking as top 10 among the 195 countries of the world.

  • Nominal GDP in Current U.S. Dollars, it is the most basic method of measuring GDP of a nation. The local prices and currencies are converted into U.S dollars, for which currency market exchange rates are used. This is the method that has been used to determine the top 10 list of richest nation.
  • Purchasing Power Parity (PPP), this is measured based on the basket of goods that the people of the nation can buy and then that is converted in USD using the exchange rates.
  • GDP Growth, this is measured with the help of the annual percentage growth rate of nominal GDP. This signifies on how fast nations are witnessing growth.
  • GDP Per Capita, in this measurement the GDP is divided among the number of people in the nation, which signifies the nation’s economy per person. This can also be estimated as a very rough measurement of the income or standard living power of the individuals of a nation.

White house

10 richest countries by GDP

The nations that have featured in this list have the ten biggest numbers of nominal GDP in the world. However, the other key factors have been mentioned as well. The list has been prepared in an ascending order, which is presented below.

1. United States

2021 Nominal GDP in Current U.S. Dollars

$23.00 trillion

2021 PPP Adjusted GDP in Current International Dollars

$23.00 trillion

2021 GDP Growth

5.7%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$69,287

 

Table 1

The United States tops the list with the largest economy of the world as per the nominal GDP, and that is how it also gains the top spot as the richest country of the world. The GDP of the nation is mostly influenced by the service sector. This service sector includes, insurance industry, finance industry, professional and business services, healthcare industry and real estate industry. The economy of the US is relatively open, and it felicitate business investment as well as foreign direct investment. It is also recognized as the dominant geological power of the entire world, that is easily capable of managing a large external national debt since it is the primary reserve currency of the world.

However, there are some of the issues that are often faced by the US including economic inequality, deteriorating infrastructure and rising social safety and healthcare net costs.

2. China

2021 Nominal GDP in Current U.S. Dollars

$17.73 trillion

2021 PPP Adjusted GDP in Current International Dollars

$27.31 trillion

2021 GDP Growth

8.1%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$12,556

 

Table 2

China is the second-richest country based on nominal GDP and the richest country as per PPP. The GDP growth of the nation is significantly rising each year leaving the US behind, which might a sign that China can become the largest economy of the world leaving the US behind within some years. The nation has become an open economy for the past four decades. And since then, the annual growth and the living standard have witnessed a steady growth. The collectivized agriculture and industry growth enhanced the flexibility of the nation quiet a lot in the terms of market prices. It has also increased the autonomy of foreign and domestic trade and business. This is how the nation has taken the place of the top exporter of the world.

However, there are some challenges that the nation faces, such as aging population and degrading environmental aspects.

3. Japan

2021 Nominal GDP in Current U.S. Dollars

$4.94 trillion

2021 PPP Adjusted GDP in Current International Dollars

$5.40 trillion

2021 GDP Growth

1.6%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$39,285

 

Table 3

Japan lands on the third position as the richest country of the world by GDP. The primary reason behind this position of the country is the strong cooperation that persists between the government and the industry. The advanced technology of the nation has vastly impacted the export-oriented areas of Japan and as a result the nation crossed $5 trillion mark in the year of 2018. Major Japanese businesses have organized interlinked network that is referred as keiretsu. The nation has witnessed a positive phrase in its growth after 1990, especially after the policies of Prime Minister Shinzo Abe, which worked out very finely for the nation and its people.

However, Japan is heavily dependent on energy imports, it also struggles because of poor natural resources and rapidly aging population, which are certainly factors to be concerned about.

Share of global economy

4. Germany

2021 Nominal GDP in Current U.S. Dollars

$4.22 trillion

2021 PPP Adjusted GDP in Current International Dollars

$4.82 trillion

2021 GDP Growth

2.9%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$50,801

 

Table 4

The fourth nation of the list Germany is not only one of the richest countries of the world but also the largest Economy of Europe. Germany is known as the top exporter of chemicals, vehicles, machinery and several other goods. The highly skilled workforce is one of the primary reasons behind achieving the top spot.

However, there are some issues that the nation faces. These issues include aging workforce with a low fertility rate and a high rate of net immigration, which indirectly impact the social welfare system.

5. The United Kingdom

2021 Nominal GDP in Current U.S. Dollars

$3.19 trillion

2021 PPP Adjusted GDP in Current International Dollars

$3.34 trillion

2021 GDP Growth

7.4%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$47,334

 

Table 5

The fifth place as the richest country of the world is acquired by The United Kingdom. Just like the US, the UK’s economy is also impacted greatly by its service sector. Insurance industry, finance industry and the business services are three of the most powerful sectors to exist. The trading relationship that exists between the nation and continental Europe is another factor to influence the UK’s economy.

However, Brexit has become one of the primary factors to natively impact the GDP growth of the UK.  

6. India

2021 Nominal GDP in Current U.S. Dollars

$3.17 trillion

2021 PPP Adjusted GDP in Current International Dollars

$10.22 trillion

2021 GDP Growth

8.9%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$2,277

 

Table 6

India takes the sixth place as the richest country of the world even though it has the lowest per-capita GDP among the nations of the list because of its population. Indian economy is primarily driven by the juncture of village farming and handicrafts along with modern industry and business sector. The service sector of India owns one of the largest shares in the economy output of the nation.

However, inflexible business rules and regulations, persistent poverty and widespread corruption makes the nation face various challenges.

7. France

2021 Nominal GDP in Current U.S. Dollars

$2.94 trillion

2021 PPP Adjusted GDP in Current International Dollars

$3.42 trillion

2021 GDP Growth

7.0%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$43,518

 

Table 7

The seventh-richest country France’s GDP depends mostly in the tourism industry. It is one of the top 10 nations to receive most of the visitors each year. The mixed economy of France depends mostly in the private and semi-private business belonging from different industries. The key sector of France are defense and electrical power generation.

The major challenges that the economy faces are rigid labor market and high unemployment with a large amount of public debt, which certainly stiffens the economic growth quiet a lot.

8. Italy

2021 Nominal GDP in Current U.S. Dollars

$2.10 trillion

2021 PPP Adjusted GDP in Current International Dollars

$2.71 trillion

2021 GDP Growth

6.6%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$35,551

 

Table 8

Italy gets the eighth-largest spot as the largest economy of the world. The northern region of Italy is more developed than the south one. Hence, the northern region contributes more towards the economic growth of the nation.

However, the concerning factors that are associated with the nation’s economic growth are the high rate of public debt, high rate of youth unemployment, weak banking sector, inefficient court system, inefficient labor market and a large underground economy.

Namsan Seoul tower, South Korea

9. Canada

2021 Nominal GDP in Current U.S. Dollars

$1.99 trillion

2021 PPP Adjusted GDP in Current International Dollars

$1.99 trillion

2021 GDP Growth

4.6%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$52,051

 

Table 9

The place of 9th largest economy of the world is acquired by Canada. The nation is known for its well-developed energy extraction sector. It also has the title of the third-largest oil reserve of the world. The impressive manufacturing and service sectors of the nation also influence the economy. These service sectors are mostly based in the urban areas near the US border. Three quarters of the Canadian exports head directly to the US markets. The close relationship that Canada shares with the US plays a huge role it is making it one of the richest countries of the world by GDP.

The Canadian economy faces concerns from different aspects, such as aging population and environmental degradation.

10. South Korea

2021 Nominal GDP in Current U.S. Dollars

$1.80 trillion

2021 PPP Adjusted GDP in Current International Dollars

$2.43 trillion

2021 GDP Growth

4.0%

2021 Nominal GDP Per Capita in Current U.S. Dollars

$34,757

 

Table 10

The 10th position in the list of richest countries of the world is taken up by South Korea. South Korea is referred as an advanced industrial nation that drives the majority of its economy from export-led strategy along with the dominance of Chaebols. In recent decades the nation has built a free-trade agreement with 58 nations, which is three-quarters of the world’s GDP. The country is a major producer as well as exporter of electronics, motor vehicles and telecommunication equipment.

Just as the other large economies South Korea also faces issues like slower growth and aging workforce. The population of the country is dropping as well.

Conclusion

Most of the mentioned nations have been in the list for a decade now, which symbolize their constant economic growth. However, some of the countries have also fell out of the lists and made it to the top 20. Among these nations there are, Russia, Brazil, Australia, Spain, Mexico, Indonesia, Netherlands, Saudi Arabia, Turkey, and Switzerland.  Saudi Arabia, Turkey, and Switzerland’s GDP is in billion.

If you liked this article and it has helped you in generating valuable information, then you can read more articles like this in our Top 10 series. Have a good read.

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