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Largest Economy Of The World – Africa Facts Zone

Story Highlights

  • Largest Economy Of The World - Africa Facts Zone
  • The EU As An Economy
  • Rankings by Nominal GDP
  • Outlook for the Future
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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.

Chefchaouen in Morocco’ The Blue City Seen From The Sky

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.

Lake Malawi the ‘Lake of Stars’, A UNESCO World Heritage Centre

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:

  1. United States: Nominal GDP: $21.44 trillion – U.S. GDP (PPP): $21.44 trillion
  2.  China: Nominal GDP: $14.14 trillion – China GDP (PPP): $27.31 trillion
  3. Japan: Nominal GDP: $5.15 trillion- Japan GDP (PPP): $5.75 trillion
  4. Germany: Nominal GDP: $3.86 trillion – Germany GDP (PPP): $4.44 trillion
  5. India: Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion

  6. United Kingdom: Nominal GDP: $2.83 trillion – U.K. GDP (PPP): $3.04 trillion

  7. France: Nominal GDP: $2.71 trillion – France GDP (PPP): $2.96 trillion

  8. Italy: Nominal GDP: $1.99 trillion – Italy GDP (PPP): $2.40 trillion

  9. Brazil: Nominal GDP: $1.85 trillion – Brazil GDP (PPP): $3.37 trillion

  10. Canada: Nominal GDP: $1.73 trillion – Canada GDP (PPP): $1.84 trillion

  11. Russia: Nominal GDP: $1.64 trillion – Russia GDP (PPP): $4.21 trillion

  12. South Korea: Nominal GDP: $1.63 trillion – South Korea GDP (PPP): $2.14 trillion

  13. Spain: Nominal GDP: $1.4 trillion – Spain GDP (PPP): $1.86 trillion

  14. Australia: Nominal GDP: $1.38 trillion – Australia GDP (PPP): $1.32 trillion

  15. Mexico: Nominal GDP: $1.27 trillion – Mexico GDP (PPP): $2.57 trillion

  16. Indonesia: Nominal GDP: $1.11 trillion – Indonesia GDP (PPP): $3.50 trillion

  17. Netherlands: Nominal GDP: $902.36 billion – Netherlands GDP (PPP): $969.23 billion

  18. Saudi Arabia: Nominal GDP: $779.29 billion – Saudi Arabia GDP (PPP): $1.86 trillion

  19. Turkey: Nominal GDP: $743.71 billion – Turkey GDP (PPP): $2.29 trillion

  20. 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.

Source Credit:

https://www.thebalance.com/world-s-largest-economy-3306044

https://www.investopedia.com/insights/worlds-top-economies/#:~:text=In%202020%2C%20the%20gap%20is,(PPP)%20of%20%2425.27%20trillion.

 

 

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