The United States, China, Japan, Germany, and India rank among the top 10 economies in the world in terms of GDP in 2024.
One important indicator of a country’s economic health and its influence on the world economy is its GDP.
GDP is often calculated using the expenditure approach, which totals investments, net export value, consumer goods consumption, and government expenditures.
In addition to making a sizable contribution to the global GDP, the top 10 economies also have a big impact on trade and economic policy internationally.
The GDP makes up more than 66% of the global economy.
Let’s take a look at The Top 10 Best Economies in the world in 2023/2024
United States:
In 2023, the US economy surprised everyone by experiencing solid growth propelled by rising real wages, consistent job creation, robust consumer spending, and historic advancements for Black and female workers.
The economic agenda of the Biden-Harris Administration in key areas for development, resilience, and security in the future is starting to materialize.
The most recent Blue Chip forecast for growth in 2023 is a positive 2.6%, fueled by higher state and local government purchases, a resurgence in manufacturing structural investment, and robust consumer spending.
In 2023, the real GDP of the United States even surpassed certain pre-pandemic projections. Investment in manufacturing hit a record high.
Three main areas of the US economy performance exceeded expectations: rising economic production, robust labor market, and declining inflation.
China:
Since 1978, China’s economy has experienced GDP growth of over 9% annually, leading to over 800 million people escaping poverty and improvements in access to health, education, and other services.
However, China’s high growth based on investment, low-cost manufacturing, and exports has led to economic, social, and environmental imbalances.
Reducing these imbalances requires shifting the economy’s structure from manufacturing to high value services, investment to consumption, and from high to low carbon intensity.
China’s rapid economic growth has exceeded the pace of institutional development, and there are important institutional and reform gaps that need to be addressed.
The state’s role needs to evolve to provide a clear, fair, stable business environment, strengthen the regulatory system, and ensure equitable access to public services.
China is central to many regional and global development issues, accounting for 27% of annual global carbon dioxide and a third of the world’s greenhouse gas emissions.
Its growing economy is also an important source of global demand, creating new opportunities for manufacturing exporters.
Following China’s swift reopening after the COVID-19 outbreaks, GDP growth is expected to rebound to 5.1% in 2023, driven by a recovery in demand, particularly for services.
However, China’s economic freedom score is 48.3, making it 154th freest in the 2023 Index.
Japan:
Japan boasts one of the biggest and most developed economies in the world, together with a well-educated labor force and a sizable and prosperous populace.
Its economy ranked second in the world from 1968 until 2010, when China surpassed it.
From the 1960s to the 1980s, Japan’s economy grew thanks to significant investments in efficient machinery and plants, effective industrial practices, high educational standards, positive labor-management relations, access to cutting-edge technologies, R&D, an open trade framework, and a sizable domestic consumer base.
Japan currently leads the world in machine tools, optical and precision equipment, machinery, chemicals, ships, electrical appliances, electronics, cars, and machine tools.
Manufacturing has played a major role in the country’s economic success. Nonetheless, Japan has given up part of its manufacturing economic advantage to other nations.
Germany:
Germany has the largest national economy in Europe, ranking third in terms of nominal GDP and fifth in terms of GDP.
It has a highly developed social market economy. It was a founding member of both the Eurozone and the European Union.
Germany was the world’s largest capital exporter in 2016 with the largest trade surplus, valued at $310 billion. In 2019, Germany ranked among the world’s top exporters, with $1.81 trillion in goods and services shipped.
The top 10 exports are automobiles, machinery, chemical goods, electronics, electrical equipment, medicines, transport equipment, basic metals, food products, and rubber and plastics.
The service sector accounts for around 70% of the country’s GDP. Germany is the first significant industrialized country in Europe and has the greatest manufacturing economy.
India:
In Q2 FY24, India’s GDP grew by 7.6%, more than the 6.5% growth rate predicted by the RBI.
Compared to large economies such as the USA, China, Russia, and the UK, which have had growth rates of 5.5%, 5.2%, 4.9%, and 0.6%, respectively, this growth rate is higher.
In Q2 of FY24, private consumption’s percentage of GDP rose to 61%.
The current GDP increase is mostly attributed to the manufacturing and construction sectors, which are rising at 13.3% and 13.3%, respectively.
In addition, from 21.4% in Q1 FY24 to 21.9% in Q2, exports rose.
However, there has been a downturn in a few industries, including trade, transportation, lodging, and communications.
The International Monetary Fund predicts that India’s economy, which currently stands as the fifth largest in the world, would surpass other major economies in growth.
United Kingdom:
With a score of 69.9, the UK is ranked 28th in the 2023 Index for economic freedom.
Since 2020, the economy of the nation has grown significantly, yet budget deficits and public debt remain at around 100% of GDP.
The UK has a highly regarded legal system, scoring higher than the rest of the world in terms of government honesty, judicial efficacy, and property rights.
Taxes paid by the government account for 32.8% of GDP, but public debt represents 95.3% of GDP. In 2023, the UK’s GDP growth was muted because of high interest rates and tight budgetary policies.
2024 will see a modest increase in consumption, which will accelerate up in 2025. The IMF predicts weak growth in 2024 and a slight rebound in 2025, but structural growth barriers still exist.
France:
The third-biggest economy in Europe and the seventh-largest in the world, France draws in foreign investors because of its stable economic environment.
The nation boasts sophisticated financial markets, creative entrepreneurs, and a modern corporate culture.
Its infrastructure, which includes vast roadway networks, maritime ports, and high-speed passenger rail, sustains more than 500,000 jobs.
With more than 4,500 US companies operating in France, the US is the largest foreign investor in France in terms of new projects invested in and jobs created.
With about 750,000 employment supported in the US, French companies rank as the fifth-largest foreign investment source in the country.
For French FDI, clean technology businesses are a major industry.
Significant labor market and tax changes were made by the French government after Emmanuel Macron was elected president in May 2017.
Italy:
Italy’s economic freedom score is 62.3, making it the 69th freest in the 2023 Index.
The nation has an overall score that is higher than the global average, placing it 36th out of 44 nations in the Europe area.
But the progress made in the direction of more economic freedom has been erratic and largely unproductive.
Persistent corruption seriously erodes public faith in the administration. Structural flaws combined with debt burden increases are making it harder to be competitive over the long run.
A large portion of economic activity is accounted for by the unofficial sector.
Italy holds a charter membership in the European Union and NATO. Three major obstacles are migration, rising living expenses, and growing energy bills.
The highly developed industrial North is dominated by private businesses, whereas the less developed and heavily subsidized agricultural South has higher unemployment.
Canada:
Canada has one of the most developed economies in the world, with a projected GDP of $2.14 trillion in 2022.
Its GDP is almost one-third comprised of imports and exports, making it heavily reliant on global trade.
Real estate, manufacturing, renting and leasing, and mining, quarrying, and oil and gas exploitation are Canada’s three main businesses.
Major financial institutions including the Royal Bank of Canada and Enbridge Inc., a provider of energy transportation and distribution, are based in the nation.
The economy of Canada is a highly developed mixed economy, with a GDP nominal of roughly 2.117 trillion US dollars.
The nation is ranked well in the Global Innovation and Competitiveness Indexes and low in the Corruption Perceptions Index.
The service sector dominates the Canadian economy, followed by the forestry and petroleum sectors.
Brazil:
Brazil, the largest economy in Latin America and the Southern Hemisphere globally, is a developing mixed economy of upper middle income, ranking ninth in terms of GDP and eighth in terms of purchasing power parity.
It has developed a diverse industrial base throughout the 20th century and has been a member of several economic organizations.
Brazil’s exports were based on the manufacturing of primary products during the Portuguese Empire.
Massive immigration from Europe coincided with the nation’s robust economic and demographic growth, which benefited the development of human capital.
Tens of millions of tons of steel, 26 million tons of cement, 3.5 million television sets, and 3 million refrigerators are produced in Brazil, one of the top ten global marketplaces.
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