- Largest Economy Of The World - Africa Facts Zone
- The EU As An Economy
- Rankings by Nominal GDP
- Outlook for the Future
In terms of GDP in PPP, China is the largest economy of the world, with a GDP (PPP) of $25.27 trillion. By 2023, China’s GDP (PPP) would be $36.99 trillion.
The European Union was in second place, contributing 22 trillion, or 16.3%, of world GDP. The U.S. remained No. 3, with 20.6 trillion, or a 15.2% share. The three combined represented 50% of the world economy.
China has been the largest economy of the world since 2015, when it took the top spot from the EU. Still, China’s growth rate has slowed to single digits as its leaders attempt to head off an asset bubble through reform. So it’s unlikely that the Chinese yuan will replace the dollar as the world’s reserve currency anytime soon. The dollar is buoyed by the power of the U.S. economy.
Largest Economy Of The World: The EU As An Economy
Even though the EU produces more, some experts say the U.S. is still the largest economy of the world. They argue that the U.S. is a country while the EU is just a trading area that includes 28 separate member countries.
Despite the eurozone debt crisis, the EU is lurching toward greater fiscal integration as well as a monetary one. The EU is acting more and more like a unified economy all the time. Furthermore, the EU’s currency, the euro, has successfully competed with the dollar as a global currency.
Largest Economy Of The World: Rankings by Nominal GDP
Here are the 2020 rankings by nominal GDP, shown in U.S. dollars. These don’t take into account PPP, and by this measure, the U.S. has remained the world’s biggest economy:
- United States: Nominal GDP: $21.44 trillion – U.S. GDP (PPP): $21.44 trillion
- China: Nominal GDP: $14.14 trillion – China GDP (PPP): $27.31 trillion
- Japan: Nominal GDP: $5.15 trillion- Japan GDP (PPP): $5.75 trillion
- Germany: Nominal GDP: $3.86 trillion – Germany GDP (PPP): $4.44 trillion
India: Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion
United Kingdom: Nominal GDP: $2.83 trillion – U.K. GDP (PPP): $3.04 trillion
France: Nominal GDP: $2.71 trillion – France GDP (PPP): $2.96 trillion
Italy: Nominal GDP: $1.99 trillion – Italy GDP (PPP): $2.40 trillion
Brazil: Nominal GDP: $1.85 trillion – Brazil GDP (PPP): $3.37 trillion
Canada: Nominal GDP: $1.73 trillion – Canada GDP (PPP): $1.84 trillion
Russia: Nominal GDP: $1.64 trillion – Russia GDP (PPP): $4.21 trillion
South Korea: Nominal GDP: $1.63 trillion – South Korea GDP (PPP): $2.14 trillion
Spain: Nominal GDP: $1.4 trillion – Spain GDP (PPP): $1.86 trillion
Australia: Nominal GDP: $1.38 trillion – Australia GDP (PPP): $1.32 trillion
Mexico: Nominal GDP: $1.27 trillion – Mexico GDP (PPP): $2.57 trillion
Indonesia: Nominal GDP: $1.11 trillion – Indonesia GDP (PPP): $3.50 trillion
Netherlands: Nominal GDP: $902.36 billion – Netherlands GDP (PPP): $969.23 billion
Saudi Arabia: Nominal GDP: $779.29 billion – Saudi Arabia GDP (PPP): $1.86 trillion
Turkey: Nominal GDP: $743.71 billion – Turkey GDP (PPP): $2.29 trillion
Switzerland: Nominal GDP: $715.36 billion – Switzerland GDP (PPP): $548.48 billion
Largest Economy Of The World: Outlook for the Future
China is growing at a faster pace than the U.S. Its economy is estimated to have grown at a rate of 6.3% in 2019, and it is expected to add another 6.1% in 2020. The U.S. rate was 2.5% in 2019, with a projected increase of 1.7% in 2020.
In fact, China’s growth is expected to be outpaced only by that of India. The Indian economy’s growth was estimated at 7.4% in 2019 and it is expected to grow another 7.4% in 2020.
The IMF estimates how much the world’s economy will grow over the next five years, and who will contribute the most. By 2024, China’s share is expected to grow to 21.4% of the world’s economy, while the contribution from the EU and the U.S. will dip to 14.6% and 13.9%, respectively.