The entire World has been a notion of survival for the past few decades. That’s right! It is the year 2020, and already so much has changed. To begin with, wars between countries are no longer visual but tradeful. For example, recently, India acted up against China by banning prominent Chinese applications in the country. Thus, distressing the Economy of China in countable ways. Today, we are counting down the largest economies in the World 2020 by GDP perking up even amid the COVID-19 pandemic.
Here’s a fun fact, to begin with, in the event that we view the GDP-based performance of countries 100 years ago, in the 1920’s, the United States had held the first ranking as the largest economies in the World for a long time. Even today, the U.S. ranks first. However, is the country strongest this time? Let’s find out:
Table of Contents
United States: 1st largest Economies in the World
When it comes to counting down the World’s financially strongest countries, the United States is the perfect exemplar of a superpower. Do you know why no country wants to dispute with the USA? Well! The USA has been growing faster by the day. According to the 2018 GDP reports, the country’s GDP was only $20.58 trillion. In just two years (in 2020), the country’s GDP increased to $22.32 trillion. Isn’t that extraordinary? To the reader’s surprise, the USA has been at the top of GDP ranking since 1871.
Here’s a fun fact: do you know? China is falsely considered the top largest economy in the World 2020 due to its higher GDP(PPP), I .e.., $27.31 trillion. However, the USA overcomes China’s GDP growth via its success in other factors such as modern infrastructure, natural resources availability, and good-terms with other richest countries in the World. Meanwhile, China has recently dropped down due to the receival of accusations and termination of relationships from other countries. The respective countries think that COVID-19 widespread is an intentional move to destroy their financial state. What do you think?
To begin with, China’s growth in the past few years has stunned the World. For the most part, the respective country has advanced from being a closed-economy to transforming into the largest product export hub. From the United States to India, Dubai, Saudi Arabia, and the United Kingdom, Chinese products are sold everywhere across the World. In the meantime, China counted as the 2nd ranking world economy ranking 2019 with $14.140 trillion nominal GDP. Moreover, its PPP ranges more than the United States, I .e.., approximately $27 trillion. So, how has China advanced so much in such a short period?
According to EveryCRSReport.com, China’s primary reasons for growth are a capital investment at a large rate and persistently improving productivity. To the reader’s surprise, the instant growth in China’s economic conditions has led the U.S. government to raise questions on the country’s innovation and intellectual property policies. However, a recent group of reports concerning China’s financial state has revealed that it is going down for many reasons. Such as declining federal reserve, constantly falling birth rate due to the one-child policy, and a higher ratio of the aged population.
Hence, the main question stands, how long will China remain among one of the world’s largest economies?
Japan: 3rd Largest Economies in the World
Although Japan seems forever defeated by the United States and China, the country has made some triumphant moves on its GDP growth in 2019. Recent reports on Japan GDP 2019 revealed that it is now at $5.2 trillion nominal GDP. According to statistics, the country’s GDP annual growth rate is 0.8% as of 2018. To the reader’s surprise, it is now counted among one of the world’s top 10 richest countries by GDP per capita.
The New York Times reported that the major reasons for Japan’s unexpectedly increased growth rate and GDP are a heavy public investment, loose monetary policy, and structural reforms. Here’s a fun fact: do you know? The year 2020 is a game-changer for Japan. To begin with, there’s an evidential trade-war going between the U.S. and China. This war has forecasted a 0.5% annual growth in Japan’s Economic growth, says prominent market economists.
However, does this mean China will be out-in-the-roots soon?
In the event that you are wondering which richest countries in the World are in the line to beat Japan and China? Well! It is in Germany next! To begin with, Germany is counted among Europe’s largest and richest economies, with nominal GDP touching approximately $4 Trillion worth. However, it does not make up for Germany’s rank that has dropped down instantly since 1980(s). For the most part, in the late 1900s, Germany was ranked in the 3rd position for being the largest economies in the World. But, Japan took its place by rapid productivity and an open-economy system.
For the reader’s information, the primary reasons behind the growth of Germany’s GDP are an investment in sectors of vehicle construction, engineering, chemical industry, and electrical industry (in 2018). Although, in 2019, Germany’s GDP struggled at a personal level because of the U.S.-China trade war. According to recent reports, the Industrial sector of the country is struggling due to the fall in the export rate.
India: 5th Largest Economies in the World
Although in the past, India has defeated Germany’s PPP GDP worth. But, due to low nominal GDP as compared to other countries, India ranks in the 5th position. The country’s current nominal GDP is valued at $2.94 trillion. However, to the reader’s surprise, in 2019, India defeated some other richest countries in the world, including the united kingdom, Frace, Brazil, and Italy.
When it comes to India’s GDP growth rate, the country has improved its annual growth in all sectors. As per the recent reports by Wikipedia, India’s service sector has improved by 10.1%. Moreover, in the manufacturing sector, the country has advanced by approximately 7%. Above all, a 0.2% growth in agriculture has strengthened the overall GDP growth of India.
As mentioned before, India has successfully caused the United Kingdom to drop down to 6th position for the largest economies in the World. But do you know? The United Kingdom’s GDP is worth $2.83 trillion as of 2019. It is less than India’s nominal GDP.
However, market economists have forecasted the GDP rate of the United Kingdom to drop in the future, most probably, 2023. According to the reports, by the year 2023, the U.K. will potentially struggle to hold its 6th ranking in the world economy list. France will take over the U.K.’s position very soon.
France: 7th Largest World Economy ranking 2019-20
To begin with, France’s nominal GDP is worth 2.71 trillion USD. The difference between France and U.K’s GDP growth rate is negotiable. To the reader’s surprise, France is counted among one of the most visited countries in the World with the highest tourism rate before India.
But, here’s a fun fact: Market Economists are forecasting a rapid decline in France’s growth rate due to the COVID-19 pandemic. Not only this, but a few economic experts have also commented that this is the largest decline in the country’s growth rate after World War II. a 6% dropdown in the GDP of France is already witnessed.
With Nominal GDP touching $1.99 trillion and PPP GDP costing $2.40 trillion, Italy has defeated Brazil and Canada in the past few years. According to GDP forecast reports by Market economists, Italy’s nominal GDP will touch $2.26 trillion in the years to come. On the one hand, where Italy is still a part of the richest countries in the World, the country is struggling through a declining employment rate. Therefore, the country will soon try to recover through enhanced productivity in the export and business development industries. In 2019-20, Italy’s GDP improved only by 0.3%, which is quite less.
Brazil: 9th Largest World Economy Ranking 2019-20
Brazil comes among Latin America. Indeed, it is a large populous country with GDP crossing $1.85 trillion in 2019. To begin with, it has become very challenging for Brazil to stay among the world economy rankings for long. Due to political uncertainties and corruption in the business industry. As compared to the 1800(s) era, Brazil has made a countable improvement. But, the country is soon expected to run out of the lane of economy ranking 2023.
Last but not least, Canada is the 10th largest economy in the World by 2020. It has a GDP value worth $1.73 trillion for nominal and $1.84 trillion for PPP. Up until 2015, Russia was holding the position for the 10th largest world economy. But, Canada took over its place. Its GDP has received credit through Real Estate, Rental, and Leasing, manufacturing industry, construction industry, and finance & insurance.
In conclusion, the COVID-19 pandemic has changed the tolls of countries’ financial state. But, as per the forecasted list of the top largest economies in the World 2050. India ranks first with a Nominal GDP of 85.97 trillion USD. China will hold the second rank with a GDP worth 80.2 trillion USD. At last, the United States GDP 2050 will decline to 39.07 trillion USD(credit: Economic Times). So, what do you think?