Top 5 Countries’ GDP

Prof. S. Thilak, Assistant Professor, SIMS

GDP (Gross Domestic Product) is the total value of goods and services produced in a country. GDP is measured over specific time frames, such as a quarter or a year. GDP is an economic indicator used worldwide to show the economic health of a country. Technically, it is the sum of the gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

GDP (PPP-purchasing power parity) is gross domestic product converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GDP as a U.S. dollar has in the United States. Purchasing power parities (PPPs) are the rates of currency conversion that eliminate the differences in price levels between countries. Here are the top five countries’ GDP that has been listed below.

• United States

U.S. Nominal GDP: $21.44 trillion – U.S. GDP (PPP): $21.44 trillion

The U.S. has retained its situation of being the world’s biggest economy since 1871. The extent of the U.S. economy was at $20.58 trillion in 2018 in minimal terms and is expected to reach $22.32 trillion in end of 2020. It is regularly named as a financial superpower and on the grounds that the economy constitutes nearly a one fourth of the worldwide economy with supported advanced infrastructure, technology, and an abundance of natural resources.  In 2019,  GDP (PPP), was at $21.44 trillion and is expected to reach to $24.88 trillion by 2023.

2. China

China Nominal GDP: $14.14 trillion – China GDP (PPP): $27.31 trillion

China has encountered exponential development in recent years, breaking the barriers of a centrally-planned closed economy to evolve into a manufacturing and exporting hub of the world. In 1980, China was the seventh-biggest economy, with a GDP of $305.35 billion, while the size of the U.S. at that point was $2.86 trillion since 1978. The Asian monster has seen a monetary development averaging 10% yearly. The IMF extends a development of 5.8% in 2020, which would directly fall around 5.6% by 2023. In 2018, the Chinese GDP in ostensible terms remained at $13.37 trillion, lower than the U.S. by $7.21 trillion. In 2020, the hole is relied upon to diminish to $7.05 trillion, and by 2023, the distinction would be $5.47 trillion. Regarding GDP in PPP, China is the biggest economy, with a GDP (PPP) of $25.27 trillion. By 2023, China’s GDP (PPP) would be $36.99 trillion. China’s enormous populace cuts down its GDP per capita to $10,100.

3. Japan

Japan Nominal GDP: $5.15 trillion- Japan GDP (PPP): $5.75 trillion

Japan is the third-biggest economy on the planet, with its GDP crossing the $5 trillion imprint in 2019. The money related emergency of 2008 shook the Japanese economy and it’ was  a difficult time for its economy from that point forward. The worldwide emergency set off a downturn, trailed by frail homegrown interest and tremendous public obligation. At the point when the economy was starting to recoup, it endured a gigantic tremor that hit the nation socially and financially. While the economy has broken the deflationary winding, monetary development remained muted. Its economy will get some boost with the 2020 Olympics keeping  the investment flow strong, which is sponsored by a careless money related approach by the Bank of Japan. Japan slips to the fourth spot when GDP is estimated as far as PPP; GDP (PPP) is $5.75 trillion out of 2019, while its GDP per capita is $40,850.

4. Germany

Germany Nominal GDP: $3.86 trillion – Germany GDP (PPP): $4.44 trillion

Germany isn’t only Europe’s biggest economy yet in addition the most grounded. On the worldwide scale, it is the fourth-biggest economy as far as nominal GDP, with a $4 trillion GDP. The size of its GDP as far as buying power equality is $4.44 trillion, while its GDP per capita is $46,560. It was the third-biggest economy in nominal terms in 1980, with a GDP of $850.47 billion. The country has been dependent upon capital great fares, which endured a misfortune post-2008 money related emergency. The economy developed by 2.2% and 2.5% in 2016 and 2017, individually. Notwithstanding, the IMF says this slipped to 1.5% and 0.5% in 2018 and 2019, separately. To support its assembling quality in the current worldwide situation, Germany has dispatched Industries 4.0—its vital activity to set up the nation as a lead market and supplier of cutting-edge fabricating arrangements.

5. India

India Nominal GDP: $2.94 trillion-India GDP (PPP): $10.51 trillion

India is the quickest developing trillion-dollar economy on the planet and the fifth-biggest in general, with a nominal GDP of $2.94 trillion. India has become the fifth-biggest economy in 2019, surpassing the United Kingdom and France. The nation positions third when GDP is thought about regarding buying power equality at $11.33 trillion. With regards to ascertaining GDP per capita, India’s high populace hauls its ostensible GDP per capita down to $2,170 The Indian economy was just $189.438 billion in 1980, ranking 13th on the list globally. India’s development rate is required to increase from 7.3% in 2018 to 7.5% in 2019 as it drags from the cash trade activity and the presentation of the merchandise and enterprises charge blur, as indicated by the IMF. Today, its administration area is the quickest developing area on the planet, adding to over 60% to its economy and representing 28% of business. Assembling stays as one of its critical areas and is being given due push by means of the legislatures’ drives, for example, “Make in India.” The economy’s quality lies in a restricted reliance on sends out, high sparing rates, good socioeconomics, and a rising working class.