As you may know, the GDP of nearly every nation fluctuates annually and if you’re curious to find out what countries have the strongest economies in the world as of 2021, then you happen to be at the right place.
Considering the current situation, the economy of almost every country has been affected majorly due to the outbreak of Covid-19, and that it has accelerated extensive changes in economically significant factors.
The primary indicator through which the economy of a particular country is calculated is called Gross domestic product (GDP). As per its definition, it measures the total value of all goods and services produced in an economy over a certain time period.
As per pwc.com, ‘by the end of 2021 or early 2022, countries can expect the global economy to revert to its pre-pandemic level of output.’
Top 10 Economies in the World as of 2021
According to estimates by the World Bank, China was the world’s largest economy in 2019. contributing $22.5 trillion, or 17.3%, of the world’s $130 trillion in gross domestic product. On the other hand, the U.S. was second, with $20.5 trillion, or a 15.8% share.
You Might Like | Top 10 Richest Football Clubs in the World
1. United States
- Gross domestic product (GDP) annualized nominal rate for first quarter, or Q1, 2021:$22.0 trillion
- GDP growth rate (annualized rate for Q1 2021): 6.4%
- Real GDP per capita: $57,664 (Q1 2021)
- Gross national income: $21.6 trillion PPP dollars (2019)
The United States is considered to have the largest economy in the world which is measured in terms of nominal GDP. The major sectors that contribute to the GDP of the country include finance, real estate, insurance, professional and business services, and healthcare.
Most of the United States’ revenue comes from income taxes and its extensive spendings are particularly towards Social Security benefits, military spending, and Medicare. As for the nature of the economy, it has a relatively open economy reinforcing flexible business investment and foreign direct investment across all states in the country.
- Gross domestic product (GDP): 14.72 trillion U.S. dollars (2020)
- GDP growth rate (annual change 2019): 6.1%
- Real GDP per capita: 10,484 U.S. dollars (2020)
- Gross national income: 23.47 lakh crores PPP dollars (2019)
The world’s second-largest nominal GDP in current dollars is of China, which is said to dominate the same in the coming years. It is growing consistently in terms of annual growth. The country exported 16.2% of the world’s total exports in the year 2018. In the last four decades, China has opened its economy on a gradual basis which has eventually improved its economic development and living standards.
Most of the country’s economic growth is built on low-cost exports of machinery and equipment. It spends around 9% of its GDP on infrastructure and its Belt and Road Initiative is considered to be one of the largest global infrastructure projects in history.
- Gross domestic product (GDP): 5.08 lakh crores USD (2019)
- GDP growth rate (annual change 2019): 0.7%
- Real GDP per capita: 40,246.88 USD (2019)
- Gross national income: 5.66 lakh crores PPP dollars (2019)
Japan’s economy produced $5.5 trillion in 2019 and is the third-largest economy in the world. Based on capitalism, Japan has a mixed economy but it works in close association with the industry sector. Some of the country’s largest exports include automobiles, machine parts, precious metals, and electrical components.
The country’s extensive businesses are organized as interlinked companies in the form of networks known as Keiretsu. Even though Japan falls under the strongest economies in the world, it’s been suffering from deflation and slow growth since the 1990s.
- Gross domestic product (GDP): 3.86 lakh crores USD (2019)
- GDP growth rate (annual change 2019): 0.6%
- Real GDP per capita: 46,445.25 USD (2019)
- Gross national income: 4.81 lakh crores PPP dollars (2019)
As measured by nominal gross domestic product, Germany’s economy produced $4.2 trillion in 2019. The country has the fourth-largest economy following the United States, China, and Japan. The economy there is of the mixed type where it supports a free market economy in consumer goods and business services.
Most of its economic benefits come from its membership in the EU and the adoption of the euro. The domestic market there is also a significant contributor to their economic growth.
5. United Kingdom
- Gross domestic product (GDP): 2.83 lakh crores USD (2019)
- GDP growth rate (annual change 2019): 1.5%
- Real GDP per capita: 42,330.12 USD (2019)
- Gross national income: 3.2 lakh crores PPP dollars (2019)
The United Kingdom has the fifth-largest economy in the world, it marked a GDP of $2.83 trillion in 2019. The nation’s large service sector in finance, insurance, and business services has driven its economic growth extensively.
The country experienced a halt in its economic growth due to low investments in private consumption and reduced fixed investments created by the BREXIT. However, with such a good score of nominal GDP, The United Kingdom will hold its position among the top economies in the world for a long run.
- Gross domestic product (GDP): 2.87 lakh crores USD (2019)
- GDP growth rate (annual change 2019): 4.2%
- Real GDP per capita: 2,099.60 USD (2019)
- Gross national income: 9.46 lakh crores PPP dollars (2019)
India is the world’s sixth-largest economy. The country produced $9.4 trillion in goods and services in 2017. More than half of India’s population relies on agriculture and one-third of them are employed by the services industry, which contributes two-thirds of its output.
Despite the recession of 2008, India has had a stimulated growth in its economy which grew 6.8% in 2018, 7.2% in 2017, and 8.2% in 2016. In 2010, the nation’s poverty line was reduced by nearly 10%.
- Gross domestic product (GDP): 2.72 lakh crores USD (2019)
- GDP growth rate (annual change 2019): 1.5%
- Real GDP per capita: 40,493.93 USD (2019)
- Gross national income: 3.38 lakh crores PPP dollars (2019)
With a GDP of $2.72 trillion in 2019, France ranks seventh in the world in terms of economic status. The main factor that contributes to the growth of France’s economy is Tourism as a large group of people visit the nation every year.
As the nation supports private and semi-private businesses diversified into different sectors, France’s economy is considered to be of mixed type. As it is involved with the government for sectors such as defense and electrical power generation, it still faces some challenges for its economic growth.
- Gross domestic product (GDP): 2 lakh crores USD (2019)
- GDP growth rate (annual change 2019): 0.3%
- Real GDP per capita: 33,228.24 USD (2019)
- Gross national income: 2.69 lakh crores PPP dollars (2019)
Italy has the eighth-largest economy in the world with a GDP of $2.00 trillion in 2019. The nation’s economic structure depends on the services sector which accounts for three-quarters of total GDP. The major contribution to the economy is from the services which include wholesale, retail sales, and transportation sectors.
Some of the significant factors that act as a pillar to Italy’s economy include the production of high-quality products such as in machinery, textiles, industrial designs, alimentary and furniture sectors. It also plays a crucial role in the global market of luxury goods.
- Gross domestic product (GDP): 1.74 lakh crores USD (2019)
- GDP growth rate (annual change 2019): 1.7%
- Real GDP per capita: 46,194.73 USD (2019)
- Gross national income: 1.91 lakh crores PPP dollars (2019)
Dominated by strong service industry and an abundance of natural resources, Canada’s economy is among the world’s largest ones. The major sectors that contribute to the economy of the country include the service industry, manufacturing, and natural resource sectors.
On the other hand, it has the second-largest oil reserves in the world and is also a leading producer of natural minerals such as gold, nickel, aluminum, and crude oil. Annual growth of 2.0% is expected this year for Canada.
10. South Korea
- Gross domestic product (GDP): 1.65 lakh crores USD (2019)
- GDP growth rate (annual change 2019): 2.0%
- Real GDP per capita: 31,846.22 USD (2019)
- Gross national income: 2.25 lakh crores PPP dollars (2019)
With a GDP of $1.65 trillion in 2019, South Korea is the 10th largest world economy. The economy of the country is driven by strong export performance and the share of national output.
It has developed a network of free trade agreements covering 58 countries which account for over three-quarters of the world’s GDP. The country’s economy is now innovation-driven, high-income and the rate of growth has exceeded 5%.
Which country will be the richest in 2100?
China’s gross domestic product is predicted to overtake the United States by 2100.
What is the richest country in the world 2021?
Luxembourg is considered to be the richest country in the world with a GDP per capita of over $109,000.
Which is the fastest growing economy in 2021?
The economy of Libya is expected to grow by 130% in 2021.
So this was all for the Top 10 economies in the world 2021. All of these countries are growing extensively and the recovery rate amidst this pandemic is very certain.
Also, the rate at which countries like China and South Korea are dealing with COVID-19, it is predicted that these two countries will be done with the pandemic at the earliest. Meaning, their economy will be projected to grow progressively as compared to other nations.