Countries by GDP: 30 Largest Economies in the World
In this article, we will take a look at 30 largest economies in the world by GDP. If you want to see more largest economies in the world by GDP, go directly to Countries by GDP: 10 Largest Economies in the World.
GDP is the sum of the monetary value of the finished goods and services produced in a country in a year.
Generally, the bigger the GDP, the bigger a nation's economy. If GDP increases, a country might have more goods and services that can improve the quality of living in the country.
In terms of GDP, there are two types, nominal and PPP.
Nominal GDP is the value of all the finished goods and services produced in a country in a year based on current prices without adjusting for inflation.
GDP, PPP factors in the price difference of goods and services in different countries when calculating the total product.
In many emerging market countries, the price of goods and services cost less than the price of the same goods and services do in the United States. As a result, nominal GDP doesn't fully reflect the amount of goods and services produced in those countries. To more accurately reflect the purchasing power, GDP, PPP makes adjustments. Given adjustments can be difficult and subjective, GDP, PPP is harder to calculate.
In terms of which metric is better, both have their uses.
When it comes to a country's living standard, GDP, PPP is regarded as the better metric because it reflects purchasing power better.
Nominal GDP, however, is much more useful than GDP, PPP when it comes to financial flows.
In terms of the world's largest economies, many of the leading economies are countries that are either very developed like Japan or have large populations and resources like India and China. Although there are exceptions, emerging markets tend to have lower nominal GDP than their GDP, PPP.
In terms of GDP growth, the growth of GDP of many nations were relatively strong in 2022 given the rebound from the pandemic. With the U.S. Federal Reserve having raised interest rates seven times this year alone, however, many analysts think there could be an economic slowdown next year.
In terms of investing returns, countries that are more stable and advanced in technology, and that grow faster than the other countries generate higher returns for their stock market investors. For instance, the US economy has clearly been the leading the world in technological advancement since the early 80s and its stock market returned slightly more than 10% annually over the last 40 years. That's why Warren Buffett's "never bet against America" motto has been working. If Buffett was born in the Soviet Union and employed a "never bet against Russia" investing approach, he would have failed as an investor.
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Methodology
For our list of Countries by GDP: 30 Largest Economies in the World, we used the top 30 countries by nominal GDP in 2021 according to the World Bank.
For those of you interested, also check out 15 Fastest Growing Economies in the World in 2022.
Countries by GDP: 30 Largest Economies in the World
30. Nigeria
2021 GDP: $440.78 billion
Nigeria has the largest economy in Africa with a GDP of $440.78 billion. In terms of GDP, PPP, Nigeria's economy is even larger at $1.15 trillion in 2021 given the average cost of goods and services in the country is considerably lower than in the United States. Considering Nigeria's large population, the country has potential to grow its economy considerably in the future.
29. Austria
2021 GDP: $477.08 billion
Austria has the world's 29th largest economy with GDP of $477.08 billion. With the economic growth in the country, the central European country's GDP has more than doubled from 2000 when its economy had a GDP of $197.3 billion. In terms of this year, economists think Austria's GDP could expand 4.7% before potentially entering into a mild recession next year.
28. Israel
2021 GDP: $481.59 billion
Given it spends more on research and development as a percentage of GDP than any other nation at 5.44% in 2020, Israel is regarded by many as a leader in innovation. As a result of its innovation leadership, the country has a GDP per capita of $51,430.08 and an overall GDP of $481.59 billion in 2021.
27. Norway
2021 GDP: $482.44 billion
Norway has a leading petroleum sector that accounted for 40% of its exports and 14% of the country's GDP in 2021 of $482.44 billion. With the higher oil and gas prices this year, the sector could account for a bigger percentage of economic activity in 2022. Given its GDP in 2021, Norway ranks #27 on our list of Countries by GDP: 30 Largest Economies in the World.
26. Argentina
2021 GDP: $491.49 billion
Argentina isn't just the winner of the World Cup in 2022, it also has one of South America's largest economies with a 2021 GDP of $491.49 billion. While inflation is a headwind, economists expect the country's real GDP to grow by 0.5% in 2023 before rising to 1.8% in 2024.
25. Ireland
2021 GDP: $498.56 billion
Ireland has one of the highest GDP per capita in the world at $99,152.10 in 2021. Given strong economic growth, Ireland's economy has increased from $100.2 billion in 2000 to $221.9 billion in 2010 and $498.56 billion in 2021.
24. Thailand
2021 GDP: $505.98 billion
Despite global headwinds, the world bank expects Thailand's economy to grow 3.4% in 2022 and 3.6% in 2023 as the country continues to develop. In 2021, Thailand had a nominal GDP of $505.98 billion and a GDP, PPP of $1.34 trillion.
23. Belgium
2021 GDP: $599.88 billion
Belgium is a developed EU economy with a 2021 GDP of nearly $600 billion. Given its geography and membership in the EU, Belgium is the host country to the EU and NATO headquarters. Considering its developed economy, Belgium has a GDP per capita of $51,767.79 for 2021.
22. Sweden
2021 GDP: $627.44 billion
Sweden's economy is expected to grow 2.9% in 2022 before mildly contracting by 0.6% next year given the potential for a global recession considering the U.S. Federal Reserve's interest rate increases. In 2021 the Scandinavian country had a GDP of $627.44 billion, ranking #22 on our list of Countries by GDP: 30 Largest Economies in the World.
21. Poland
2021 GDP: $674.05 billion
Poland's GDP has more than doubled from its GDP when the country joined the EU in 2004. While the country had a GDP of $255.1 billion in 2004, Poland had a GDP of $674.05 billion in 2021 given substantial economic growth.
20. Switzerland
2021 GDP: $812.87 billion
With a GDP per capita of $93,457.44 in 2021, Switzerland ranks as one of the wealthiest nations by income. Given its GDP of $812.87 billion in 2021, Switzerland also has one of the larger economies in the world.
19. Turkey
2021 GDP: $815.27 billion
Turkey had a GDP of $815.27 billion in 2021 and a GDP, PPP of $2.59 trillion in the same year. Given the large difference between the two, there is potential for Turkey's economy to grow considerably in the future. In 2022, economists estimate the country's economy will expand by 5%.
18. Saudi Arabia
2021 GDP: $833.54 billion
Saudi Arabia is an energy superpower that had a GDP of $833.54 billion for 2021. Considering oil and gas prices have increased substantially this year given the Russia Ukraine war, the country's GDP will likely be higher for 2022. In the third quarter, the country's GDP rose 8.8% year over year.
17. Netherlands
2021 GDP: $1.02 trillion
The Netherlands has one of Europe's larger economies with a GDP of slightly over $1 trillion last year. Given its developed economy, the country also has one of the higher incomes on average in the EU with a GDP per capita of $58,061 in 2021.
16. Indonesia
2021 GDP: $1.19 trillion
Indonesia is a country with substantial potential given its population, resources, and geography. In 2021, the country had a nominal GDP of $1.19 trillion and a GDP, PPP of $3.57 trillion. Given its potential, Indonesia's economy could expand considerably in the next coming decades.
15. Mexico
2021 GDP: $1.29 trillion
Mexico has a nominal GDP of $1.29 trillion in 2021 and a GDP, PPP of $2.61 trillion in 2021. Given its population, resources, and proximity to the United States, the country also has substantial potential to expand its economy considerably in the future.
14. Spain
2021 GDP: $1.43 trillion
Spain has the fourth largest economy in the EU with a 2021 GDP of $1.43 trillion. In 2022, Spain's economy likely expanded over 4.4% given government estimates. Although inflation is a headwind, economists think the country's economy will expand by another 1.3% in 2023 and 1.7% in 2024.
13. Australia
2021 GDP: $1.54 trillion
Australia has a fully developed economy with a GDP per capita of $59,934.13 in 2021, making it one of the wealthiest nations per capita in the Asian Pacific. With a GDP of $1.54 trillion in 2021, Australia also has one of the largest economies in the Asian Pacific.
12. Brazil
2021 GDP: $1.61 trillion
Brazil ranks #12 on our list of Countries by GDP: 30 Largest Economies in the World with a 2021 GDP of $1.61 trillion. Given the average cost of goods and services in the country cost less than it does in the United States, Brazil has a larger economy when adjusting for the differences in purchasing power with a GDP, PPP of $3.44 trillion in the same year.
11. Russia
2021 GDP: $1.78 trillion
Russia has a nominal GDP of $1.78 trillion and a GDP, PPP of $4.79 trillion in 2021. Given it has considerable oil and gas reserves, the country is an energy superpower that also has substantial land resources.
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Disclosure: None. Countries by GDP: 30 Largest Economies in the World is originally published on Insider Monkey.
