Top 5 GDPs of the world in 2020
- A country’s financial standing is measured by its GDP meaning Gross Domestic Product calculated using the total expenditures, production or incomes of a country.
- GDP refers to the total market worth (monetary) of all the products and services the country produces within a specific time scale.
- Here are the top 5 economies of the
world in 2020to know which countries are leading the economic scene and which ones are trailing behind.
AdvertisementGDP gives a snapshot of a country’s financial performance. GDP or Gross Domestic Product is calculated in terms of the total monetary value of the goods and services produced by a country within a specified time frame. While the world GDP refers to the total of the gross national income of all the countries, the Gross National Income (GNI) takes the value of a country’s GDP, adds up the value of income from imports and subtracts the value of the total exports. The GNI value of a country is different from GDP as it reflects the domestic and international trade impact a country. We can say a country’s GDP sums up its financial health and overall performance. Here are the top 5 GDPs of the world according to the International Monetary Fund.
World’s Top 5 GDPs in 2020
- United States (GDP: 20.49 trillion)
- China (GDP: 13.4 trillion)
- Japan: (GDP: 4.97 trillion)
- Germany: (GDP: 4.00 trillion)
- India: (GDP: 2.94 trillion)
Since 1981, US remains the largest economy of the world. Even in terms of the approximate value of its natural resources, US ranks the second in the world. US has achieved a powerful economy by creating a global society that duly supports and promotes entrepreneurship, innovation and economic growth. The diversified capabilities and skills of the workforce in the country has helped the US to be the leading manufacturing industry in the world.
Deemed as the second largest economies on the earth, China has immensely benefited from its natural resources especially earth metals and coal. Between the years 1989 and 2019, China has seen an average economic growth rate of 9.52%.
As the third largest economies of the world, Japan’s economy is market-driven. This means that the prices, businesses and production will shift based on the consumer demand and not as a result of the government’s action. Studies show that the 2020 Olympics can give a further boost to the country’s economy.
The fourth largest economy of the world, Germany’s much developed social market economy is the strongest and largest in Europe. Benefited from its largest skilled work force, Germany excels in the segments of car manufacture, chemicals, household equipment and machinery. Germany accounts for about 28% of the economy of the euro region.
Overtaking the GDPs of the UK and France in 2019, India’s GDP rose to 2.94 trillion capturing the fifth spot among the world’s top GDPs. Following the liberalization policies applied by the country during early 1990s, India also implemented some measures like deregulating industries, reducing the control over investment and foreign trade, and privatizing the state owned enterprises. Such measures helped the nation accelerate its economic performance and growth. Service sector, manufacturing sector and agriculture sector of the country together contribute to its fast growing GDP.
Largest economics of the World
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