Top 10 GDP Countries 2023 – Countries with the Highest GDP

7. France

▪ France’s economy is a highly developed social market economy with significant state participation in strategic sectors. It ranks as the world’s seventh-largest economy by nominal GDP and the tenth-largest by PPP, contributing to approximately 4% of the world’s GDP.

▪ The economy is well diversified, with the service sector being the largest contributor, accounting for 78.8% of its GDP in 2017. The industrial and primary sectors make up 19.5% and 1.7% of the GDP, respectively.

▪ France is Europe’s largest recipient of Foreign Direct Investment and the second-largest spender on research and development in Europe.

▪ It is also considered one of the top 10 most innovative countries globally and the 15th most competitive nation, according to the 2020 Bloomberg Innovation Index and the 2019 Global Competitiveness Report, respectively.

▪ France is the EU’s leading agricultural power, and it is the world’s fifth-largest trading nation. The country’s GDP per capita in 2022 is $44,747 per inhabitant, ranked 26th by the IMF.

▪ France has a very high human development value of 0.903 on the United Nations Human Development Index and is ranked 21st on the Corruption Perceptions Index in 2022.

▪ Additionally, France is the most visited country in the world with a record-breaking of 48.4 million visitors in 2022!

6. United Kingdom

▪ With a highly developed social market economy, the United Kingdom is the sixth-largest national economy globally in terms of nominal GDP and the ninth-largest based on purchasing power parity.

▪ The UK is comprised of four countries – England, Scotland, Wales, and Northern Ireland – and is known for being one of the most globalized economies in the world. In 2020, it was the sixth-largest exporter and importer, attracting significant inward and outward foreign direct investment.

▪ The service sector, which includes the financial services industry centered in London, contributes 81% to the economy, while the technology sector is valued at US$1 trillion, making it the third-largest globally.

▪ Aerospace and pharmaceutical industries also play a crucial role. The economy benefits from North Sea oil and gas production, but there are regional disparities in prosperity, with South East England and North East Scotland being the wealthiest regions per capita.

▪ The UK ranks twenty-second globally in terms of GDP per capita, accounting for 3.3% of nominal world GDP and 2.34% of world GDP in PPP terms.

▪ The UK’s human development index value is very high, ranking it 13th globally in 2021, and it has a solid reputation for being one of the least corrupt countries globally.

5. India

▪ India has a developing social market economy with a mix of public and private participation. It ranks as the world’s fifth-largest economy by nominal GDP and third-largest by purchasing power parity (PPP).

▪ On a per capita basis, India is ranked 142nd by GDP (nominal) and 125th by GDP (PPP) according to the International Monetary Fund (IMF).

▪ After gaining independence in 1947, India followed a Soviet-style planned economy and protectionist policies with extensive government intervention and regulation, known as the License Raj.

▪ The acute balance of payments crisis in 1991 and the end of the Cold War resulted in broad economic liberalization. Since the turn of the 21st century, India’s GDP growth rate has averaged 6-7% annually.

▪ The Indian subcontinent had the world’s largest economy for most of recorded history until the advent of colonialism in the early 19th century. As of 2022, India’s economy accounts for 7.2% of the global economy in PPP terms and around 3.4% in nominal terms.

▪ According to some sources, if India continues to grow at its current pace, it is projected to become the world’s third-largest economy by the end of 2027.

4. Germany

▪ With its highly developed social market economy, Germany is the largest national economy in Europe and the fifth-largest economy in the world by GDP (PPP).

▪ It is a founding member of the European Union and the Eurozone, accounting for 28% of the euro area economy in 2017. In 2016, Germany achieved the world’s highest trade surplus, valued at $310 billion, making it the largest global exporter of capital.

▪ The service sector contributes around 70% of Germany’s total GDP, while industry and agriculture account for 29.1% and 0.9%, respectively.

▪ With exports accounting for 41% of national output, Germany’s top 10 exports include vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics.

▪ As Europe’s largest manufacturing economy, Germany is less susceptible to financial downturns, and it conducts applied research in its laboratories, generating knowledge.

3. Japan

▪ Japan has a highly developed social market economy that is often regarded as the East Asian model. It ranks as the third-largest economy in the world in terms of nominal GDP and the fourth-largest by purchasing power parity (PPP).

▪ Additionally, it is the second-largest developed economy globally. Japan is a member of the G7 and G20. As of 2022, the country’s per capita GDP (PPP) was $49,000, according to the World Bank.

▪ Due to the volatile currency exchange rate, Japan’s GDP as measured in dollars fluctuates significantly. Japan’s estimated GDP per capita is around $39,048 when these fluctuations are considered through the Atlas method.

▪ Japan’s economy is regularly forecasted by the Bank of Japan’s Quarterly Tankan survey of business sentiment. The Nikkei 225 presents the monthly report of top blue-chip equities on the Japan Exchange Group, which ranks as the fifth-largest stock exchange globally by market capitalization.

▪ In 2020, Japan was the world’s fourth-largest importer and exporter. Japan’s foreign exchange reserves are the world’s second-largest, valued at $1.4 trillion.

▪ It ranks 6th on the Global Competitiveness Report (2019 report) and first in the world in the Economic Complexity Index. Japan is also the fourth-largest consumer market globally.

☛ The Nikkei 225, also known as the Nikkei Stock Average or Nikkei index, is a stock market index that tracks the performance of the Tokyo Stock Exchange (TSE). 

☛ The Nikkei index has been published daily by The Nikkei newspaper since 1950 and is denominated in Japanese Yen (JP¥). 

☛ It is a price-weighted index and is reviewed annually. The Nikkei index includes 225 large, publicly traded companies in Japan from a diverse range of industry sectors, providing a comprehensive overview of the Japanese stock market's performance.

2. China

▪ China has a mixed socialist market economy with industrial policies and strategic five-year plans, making it an upper middle-income developing country. It is currently the world’s second-largest economy by nominal GDP, amounting to approximately US$18.321 trillion in 2022.

▪ Since 2016, it has been the largest economy globally when measured by purchasing power parity (PPP), contributing 18.6% of the global economy in PPP terms and 18% in nominal terms in 2022.

▪ The economy of China is made up of public sector enterprises, state-owned enterprises (SOEs), mixed-ownership enterprises, a vast domestic private sector, and an openness to foreign businesses within the system. In 2021, it surpassed the economy of the European Union.

1. United States

▪ The United States, a highly developed mixed economy, has the world’s largest nominal GDP and the second-largest purchasing power parity (PPP) after China.

▪ In 2022, it ranked seventh globally in per capita GDP (nominal) and eighth in per capita GDP (PPP).

▪ The U.S. contributed around 24.7% to the world economy in nominal terms and approximately 15.5% in PPP terms.

▪ The U.S. dollar is the most commonly used currency in international transactions and serves as the world’s primary reserve currency, underpinned by a substantial U.S. treasuries market, its role as the reference standard for the petrodollar system, and the associated eurodollar. It is the official currency in some countries and the de facto currency in others.

List of Top 10 Countries by GDP (PPP- Purchasing Power Parity)

Let’s Take a Closer Look at India’s GDP Growth

India GDP 2023 Rank

▪ India has become the world’s fifth-largest economy, thanks to its strong macroeconomic fundamentals, robust domestic demand, fiscal discipline, high saving rates, and demographic trends.

▪ The country’s traditional and modern agriculture, technology services, handicraft industry, and business outsourcing are its leading economic contributors.

▪ With a population of over 1 billion, India has one of the highest population-based economies in the world, generating an estimated GDP of more than 3.4 trillion dollars.

▪ The Economic Survey forecasts that India’s economy will grow by 6.5% in 2023-24, making it the fastest-growing among major economies.

▪ This growth will be fueled by rising consumption and investments, both domestic and foreign. As a result, India may climb higher in the World GDP Ranking list in the years to come.

Sector-wise Contribution to India’s GDP

▪ The services sector is the largest contributor to India’s Gross Value Added (GVA), accounting for 53.89% of the total GVA of 179.15 lakh crore Indian rupees.

▪ The Industry sector comes in second with a GVA of Rs. 46.44 lakh crore, contributing 25.92% to the total GVA.

▪ The Agriculture and allied sector, with a share of 20.19%, is the third-largest contributor to India’s GVA.

Per Capita GDP of India in 2023

▪ India’s high output per person is reflected in its position in the World GDP Ranking 2023 list. The per capita income of the Indian population has seen a significant increase of 33.4%, according to the Union government.

▪ This rise in income has pushed many households into higher income brackets. As of the financial year 2023, India’s per capita income stands at nearly 2 lahk, compared to 71,609 in the previous financial year 2022, representing a growth of 175% over the last decade.

▪ The substantial increase in population and demand for employment has played a crucial role in driving up the nation’s GDP per capita.

India’s GDP Growth Rate – Last 10 Years

▪ Calculating GDP involves computing the value of goods and services produced for market sale as well as non-market production, such as government-provided education or defense services.

▪ As the size of an economy is determined by the total production of goods and services, GDP is an essential metric. In this regard, India’s economy is expected to experience a significant rise in the coming years, with a projected growth rate of 6.1%.

▪ This would make India one of the world’s fastest-growing trillion-dollar economies in 2023. To monitor India’s GDP growth rate, here is a complete list of the growth rates over the past 10 years:

▪ The table above shows that India has rebounded from a negative economic growth rate during the pandemic and now boasts a healthy GDP growth rate of 6.8%. Despite having a lower GDP per capita, India is steadily climbing up the ranks.

▪ Its diverse sectors, including agriculture, business, and others, continue to be major employment generators, contributing significantly to the country’s economic growth. As a result, India is emerging as one of the largest growing economies in the world.

Frequently Asked Questions (FAQs)

Conclusion

Overall, these top 10 GDP countries are important players in the global economy with significant influence on international trade, investment, and policy-making. Their economic performance affects not only their own citizens but also the rest of the world.