According to GDP data, the United States of America, China, Japan, Germany, and India will have the world’s largest economies in 2024. GDP is a key metric for assessing the size of a country’s economy. The traditional method for calculating a country’s GDP employs the expenditure method, which involves aggregating expenditure on new consumer goods, new investments, government outlays, and the net value of exports.
World’s Largest Economies in 2024
1. The United States Of America
The United States maintains its position on the list of world’s largest economies aand richest country, holding the top spot from 1960 to 2023. Its economy is diverse, propelled by key sectors such as services, manufacturing, finance, and technology. The United States has a sizable consumer market, encourages innovation and entrepreneurship, has a strong infrastructure, and enjoys favorable business conditions.
- GDP: $26,954 billion
- GDP By Country Per Capita: $80,410
- Annual GDP Growth Rate: 1.6%
2. China
China’s economic progress has been notable, with the country moving from fourth place in 1960 to second place in 2023. The Chinese economy is primarily based on manufacturing, exports, and investment. It is proud to have a large workforce, strong government support, technological advancements, and a rapidly expanding consumer market.
- GDP: $4,430 billion
- GDP By Country Per Capita: $52,820
- Annual GDP Growth Rate: -0.1%
3. Japan
Japan’s economy is famous for its advanced technology, manufacturing prowess, and service industry. Automotive, electronics, industrial, and financial areas are prominent sectors. Furthermore, Japan is known for its unshakable work ethic, trailblazing technological developments, and remarkable exports of superior quality.
- GDP: $4,231 billion
- GDP By Country Per Capita: $33,950
- Annual GDP Growth Rate: 1.3%
4. Germany
The German economy is heavily reliant on exports and is well-known for its precision in the engineering, automotive, chemical, and pharmaceutical industries. It benefits from a skilled workforce, strong research and development programs, and a strong dedication to encouraging innovation.
- GDP: $4,430 billion
- GDP By Country Per Capita: $52,820
- Annual GDP Growth Rate: -0.1%
5. India
In 2024, India is ranked fifth in the world in terms of GDP. The Indian economy is diverse and rapidly growing, thanks to vital areas such as information technology, services, agriculture, and manufacturing. The country benefits from a large domestic market, a young and technologically savvy labor population, and an expanding middle class.
- GDP: $3,730 billion
- GDP By Country Per Capita (Nominal): $2,610
- Annual GDP Growth Rate: 5.9%
6. United Kingdom
The United Kingdom’s economy is a mix of services, manufacturing, finance, and creative industries. London serves as a global financial center, attracting foreign investment. The UK’s economic growth is also influenced by trade agreements and globalization.
- GDP: $3,332 billion
- GDP By Country Per Capita: $48,910
- Annual GDP Growth Rate: -0.3%
7. France
In 2023, France’s GDP is anticipated to be $2,920 billion US dollars. France’s economy is distinguished by diversity, with a focus on areas such as aerospace, tourism, luxury products, and agriculture. France is known for its strong social welfare system, well-developed infrastructure, and significant investment in R&D.
- GDP: $3,052 billion
- GDP By Country Per Capita: $46,320
- Annual GDP Growth Rate: 0.7%
8. Italy
As the European Union’s third-largest economy, Italy has a highly developed market. The country is noted for its important and pioneering corporate sector, as well as its diligent and competitive agricultural industry.
- GDP: $2,190 billion
- GDP By Country Per Capita: $37,150
- Annual GDP Growth Rate: 0.7%
9. Brazil
Agriculture, mining, manufacturing, and services are all important sectors in the Brazilian economy. It is notable for being a major global hub for agricultural production and exportation. Several factors influence Brazil’s economic growth, including commodity prices, domestic consumption, and infrastructure development.
- GDP: $2,132 billion
- GDP By Country Per Capita: $10,510
- Annual GDP Growth Rate: 0.9%
10. Canada
The Canadian economy is primarily reliant on its plentiful natural resources, which include oil, gas, minerals, and forests. Furthermore, the country has a robust services sector, a well-established industrial economy, and an unwavering commitment to encouraging innovation and technical developments.
The Canadian economy is primarily reliant on its plentiful natural resources, which include oil, gas, minerals, and forests. Furthermore, the country has a robust services sector, a well-established industrial economy, and an unwavering commitment to encouraging innovation and technical developments.
- GDP: $2,122 billion
- GDP By Country Per Capita: $53,250
- Annual GDP Growth Rate: 1.5%
What is GDP and it is calculated?
The Gross Domestic Product (GDP) is a significant indication of a country’s economic performance since it represents the entire market value of all products and services produced within its boundaries in a certain time period, usually a year or a quarter. It is computed using one of three methods: the production or output approach, the income approach, and the spending approach. The production approach computes the value of goods and services at the point of production, the income approach computes all revenue gained during the production process, and the expenditure approach computes all spending on goods and services in the economy. These methods should produce the same GDP statistic, offering a complete picture of a country’s economic activity and overall economic health.
Who decide the ranking?
The top economies are typically ranked by various organizations and institutions that analyze economic data and statistics. The International Monetary Fund (IMF) and the World Bank are the two most commonly used sources for global economic rankings. These organizations regularly publish reports and databases that assess and compare the economic performance of countries around the world.
Frequently Asked Questions
Gross Domestic Product (GDP) is a crucial measure of a country’s economic performance, representing the total market value of all goods and services produced within its borders during a specified period, usually annually or quarterly. GDP can be calculated using three primary methods: the production (output) approach, the income approach, and the expenditure approach. These methods essentially sum up the value of all goods and services produced, income earned, or expenditures made within the economy.
The ranking of the world’s largest economies is typically determined by analyzing GDP data provided by reputable sources such as the International Monetary Fund (IMF) and the World Bank. These organizations regularly publish reports and databases that assess and compare the economic performance of countries globally. The economies with the highest GDP values are usually considered the largest.
These countries are ranked among the world’s largest economies based on their GDP values for the year 2024. The United States consistently maintains its position as the largest economy, followed by China, Japan, Germany, and India, which have substantial GDP figures. These nations have diverse economies and significant contributions from sectors such as manufacturing, services, technology, and innovation.
Several factors influence a country’s GDP growth rate, including investments in infrastructure and technology, government spending, consumer demand, exports, and imports. Economic policies, political stability, technological advancements, population growth, and natural disasters can also impact GDP growth positively or negatively.
GDP rankings are typically updated annually or quarterly, depending on the data availability and reporting cycles of organizations like the IMF and the World Bank. However, minor revisions or adjustments to GDP figures may occur as new data becomes available or methodologies are updated. It’s essential to consult the latest reports and databases for the most up-to-date GDP rankings and figures.
