Gross Domestic Product (GDP) is a measure of the market value of all goods and services produced within a country’s borders in a given time period, usually a year. There are 7 continents and 195 countries in the world, and some countries are huge in size and economies as well, and if we measure the economic growth of any country we need its GDP (Gross Domestic Product) and GDP is calculated in 3 ways:-
- Income Method
- Expenditure Method
- Production Method
All three methods should give the same result and are used together to give a more complete picture of a country’s economy.
It’s important to note that the rankings can fluctuate year to year based on a variety of factors such as economic growth, currency exchange rates, and government policies.
Here we can measure GDP in 2 ways Nominal and PPP (Purchasing Power Parity).
Nominal GDP – GDP measures in terms of the price level at the time of measurement (not adjusted for inflation)
GDP (PPP) – measurement of changes in exchange rates between the two currencies over time.
List of Top 10 Largest Economies in the World by GDP Nominal –
Gross Domestic Product (GDP) Nominal is a measure of a country’s economic output or the total value of all goods and services produced within a country’s borders in a given period of time, usually a year.
|S. No.||Countries Name||GDP Nominal (in $US Trillion)|
List of Top 10 Largest Economies in the World by GDP PPP –
Gross Domestic Product (GDP) Purchasing Power Parity (PPP) is an alternative method of measuring the size and economic output of a country that accounts for differences in the cost of living across countries. PPP is a more accurate measure of a country’s economic size and standard of living compared to nominal GDP because it accounts for the fact that a dollar can buy more in some countries than others.
|S.No||Countries Name||GDP PPP (in $US Trillion)|
The United States has been the world’s largest economy since the late 19th century. The US economy is highly developed and is characterized by a highly diversified industrial structure, a large consumer market, and a well-developed financial system.
China, the world’s second-largest economy, has been growing rapidly since the 1980s and has become a major player in the global economy. Japan is the world’s third-largest economy and is known for its highly advanced technology and innovation industries.
Germany is the fourth-largest economy in the world and is known for its highly developed manufacturing sector. India is the world’s fifth-largest economy and is characterized by its large and growing consumer market. The country’s economy is largely driven by its service sector, which has been growing rapidly in recent years, and its manufacturing sector, which is also growing at a rapid pace.
The United Kingdom is the world’s sixth-largest economy and is characterized by its highly developed financial sector. France is the world’s seventh-largest economy leading producer of luxury goods and is home to many of the world’s largest and most prestigious companies.
These economies are considered the major drivers of the world economy and play a crucial role in determining the overall economic health and stability of the global economy. These countries have a significant impact on the world’s financial markets, trade, and overall economic growth.