Top 10 Countries With The Highest GDP In 2022

Last Updated on September 16, 2022

Top 10 GDP Countries

Getting a feel for the economic outlook of various countries around the world will help you prepare for global expansion. So, are you a businessman or an entrepreneur looking to access more talents or do you want to explore new markets and expand your team for seamless business progress? This article will help you get an idea of ​​the top 10 countries with the highest GDP in 2022.

Before we delve into the list of top 10 GDP countries 2022, let’s take a brief look at what GDP is and why it’s important.

What then is GDP?

Gross domestic product (GDP) is a measure of the total monetary and market value of all finished goods and services that are produced in a country for a stipulated time frame within a given country’s border, which usually occurs quarterly or a year interval. As a result of the complex and subjective nature of GDP, it serves as a tool that’s employed in measuring the economic health of a given country.

Types of GDP

There are two types of GDP which include the following;

Nominal GDP

Nominal GDP is an evaluation of the economic production output in an economy that combines current prices in its assessment. In order words, it would not erase inflation or the momentum of rising prices that can inflate the growth figure.

All goods and services included in nominal GDP are evaluated at the prices at which those goods and services are actually sold in that year. Nominal GDP is measured in either the country’s local currency or U.S. dollars at currency market exchange rates to collate countries’ GDPs in purely financial terms.

Nominal GDP is used when collating different quarters of output within the same year.  However, when comparing the GDP of two or more years, real GDP is used. This is because, in effect, the eradication of the effect of inflation allows the correlation of different years that focus entirely on volume.

Real GDP

Real GDP is an inflation-adjusted gauge that shows the number of goods and services that is produced by a given economy in a specific year, with price being constant or unchanged from year to year to differentiate the effect of inflation or deflation from the trend in production over time. GDP is subject to inflation since it measures the monetary value of goods and services in a given economy.

Real GDP explains the changes in market value and hence narrows the variation between production figures from year to year. Assuming there is a great difference between a nation’s real GDP and nominal GDP, this could serve as an indicator of relevant inflation or deflation in such a nation’s economy.

Why is GDP important?

GDP is an important tool to consider when it comes to a country’s economy health. The reason why GDP is considered important in a nation includes the following;

  • It’s a tool for measuring the monetary value of all finished goods and services made within a country for a given period of time.
  • GDP provides the economic position of a country, which is used to evaluate the size of an economy and growth rate.
  • GDP can be deduced in three ways, which include the use of expenditures, production, or incomes. It can be corrected for inflation and population to give a deeper understanding.
  • Though GDP has limitations, it is a key tool that serves as a guide for policymakers, investors, and businesses in making critical decisions.
  • Gross domestic product tracks the health of a country’s economy.
  • It represents the value of all goods and services produced over a specific time period within a country’s borders.
  • GDP enables economists to ascertain if an economy is thriving or experiencing a recession.
  • Investors can utilize GDP to make investment decisions, thus a bad economy usually means lower earnings and stock prices.

After learning what GDP means, the types, and why GDP is important. We shall now consider the list of the top 10 GDP countries in 2022.

Top 10 GDP Countries 2022

  1. United States: $20.89 trillion
  2. China: $14.72 trillion
  3. Japan: $5.06 trillion
  4. Germany: $3.85 trillion
  5. United Kingdom: $2.67 trillion
  6. India: $2.66 trillion
  7. France: $2.63 trillion
  8. Italy: $1.89 trillion
  9. Canada: $1.64 trillion
  10. South Korea: $1.63 trillion

1. United States

  • GDP – Nominal: $20.89 trillion
  • GDP per Capita: $63,413
  • GDP – Purchasing Power Parity (PPP): $20.89 trillion

The United States has a number of factors that has contributed to its success. This includes an entrepreneurial atmosphere that supports hard work and extended period certainly assists. However decentralized governments, advanced research institutes and convenient regulatory environments also contribute to the success of the United State economically.

2. China

  • GDP – Nominal: $14.72 trillion
  • GDP per Capita: $10,434
  • GDP – Purchasing Power Parity (PPP) : $17,204

The Chinese economy is one rapid growing economy in the 21st century, which is now ranked as the second largest economy in the world. The China’s Belt and Road Initiative adequately combining its foreign and also its economy policy, promotion of the utilization of the Chinese Renminbi for settlements has increased. China since 2008 during the financial crisis has been the largest contributor in terms of global wealth. The country is consistently playing a vital role in the global economy.

3. Japan

  • GDP – Nominal: $5.06 trillion
  • GDP per Capita: $39,048
  • GDP – Purchasing Power Parity (PPP): $5.24 trillion

Japan which has four main islands namely; Honshu, Hokkaido, Shikoku, and Kyushu that constitute over 98% of its land area is the third world largest economy in terms of GDP and also the fourth largest economy in terms of purchasing power parity (PPP).

Japan ranks as one of the top GDP countries in 2022 and also one of the most innovative countries in the world, Japan been the world’s greatest electronic goods producer also the third largest automobile manufacturer.

 The country basically has abundance in annual and international trade investment. Japan with a highly qualified and skilled workforce has proven to be instrumental in the growth of organizations.

4. Germany

  • GDP – Nominal: $3.85 trillion
  • GDP per Capita: $45,466
  • GDP – Purchasing Power Parity (PPP): $4.45 trillion

Germany which is a European nation with a total of 86.9% GDP estimate of exports and imports ranks fourth in the world’s largest GDP countries. The biggest propellers of its economy are its service industries which include telecommunication, healthcare, and tourism.

 Germany employs a social market economy that indicates the value of open-market capitalism and also guarantees a number of social services. When it comes to entrepreneurship Germany is ranked as number one in the world due to its skilled labor force, advanced infrastructures, and technological expertise.

5. United Kingdom

  • GDP – Nominal: $2.76 trillion
  • GDP per Capita: $39,229
  • GDP – Purchasing Power Parity (PPP): $2.98 trillion

United Kingdom (UK), which is also known as the Great Britain and the Northern Ireland which consists of England, Wales, Scotland, and Northern Ireland. It ranks as the fifth world largest economy and the second largest in Europe with respect to GDP. In the annual Global Reports and the World Bank’s Ease of business ranking, UK ranks high.

6. India

  • GDP – Nominal: $2.66 trillion
  • GDP per Capita: $1,877
  • GDP – Purchasing Power Parity (PPP): $8.68 trillion

The Republic of India is a federal democracy which comprises of 28 states and 8 union territories. Been the largest democracy and the sixth largest GDP country in the world’s economy, has progressive manufacturing, technology, and service sectors.

 The rate of foreign direct investment (FDI) influx to India since 2014 has steadily increased as some key policy adjustments were implemented by the government to promote this growth, which made India one of the top GDP countries in 2022.

Some tactical approaches have been implemented to encourage India’s business environment such as reforms to erase bottlenecks in key business areas, minimizing the minimum capital requirement, and simplifying the process of acquiring necessary licenses.

7. France

  • GDP – Nominal: $2.63 trillion
  • GDP per Capita: $39,257
  • GDP – Purchasing Power Parity (PPP): $2.95 trillion

France is the most visited destination in the world and also the seventh largest in the world economy. It has a thriving tourism industry with foreign trade been an important component of its economy. The GDP value of this country on imports and exports is 63%. And efficient regulation and strong protection of property rights have encouraged investors. France in 2019 ranked 32 in the World Bank’s Ease of Doing Business index.

8. Italy

  • GDP – Nominal: $1.88 trillion
  • GDP per Capita: $30,657
  • GDP – Purchasing Power Parity (PPP): $2.42 trillion

Italy is one of the most influential countries, the third largest economy in Europe, and the eighth largest in terms of GDP. Italy is a vital member of the Eurozone, the EU, the G20, the OECD, and the G7.

Italy’s various economic growths are induced by the consumer goods industry. 61% of household consumption, 19% of government expenditure, and 17% of the gross fixed capital formation sum the GDP expenditure side of Italy. The addition of 3% to its GDP comprises 30% from the exports of goods and services with 27% from imports of goods and services.

9. Canada

  • GDP – Nominal: $1.64 trillion
  • GDP per Capita: $42,080
  • GDP – Purchasing Power Parity (PPP): $1.81 trillion

Canada which is also one of the top GDP countries in 2022 has a mainly service-based economy.  CAD5 million and CAD50 million are the main thresholds for foreign direct and indirect investments respectively. The country 1995 has been a prime member of the World Trade Organization (WTO).

Canada also has wide trading ties with many nations due to its bilateral and regional Free Trade Agreements (FTAs). A competent- educated workforce, a booming economy, multicultural/multilingual coexistence, and the government’s assistance in setting up business have made Canada a preferred destination for investment.

10. South Korea

  • GDP – Nominal: $1.63 trillion
  • GDP per Capita: $30,644
  • GDP – Purchasing Power Parity (PPP): $2.29 trillion

South Korea which was until the 1960s, considered a developing country is today one of the most advanced and industrialized countries in the world with a GDP of about $2 trillion. The country’s economy experienced a period of rapid growth of about 10% for over 30 years due to far-reaching economic reforms.

South Korea allocates great importance to education, innovation, and investment in research and development. It has a highly skilled workforce that earns a high medium household income. The majority of the country’s GDP at 59% is provided by services of which industry is at 38% and agriculture at 2%.

Conclusion

GDP is an important tool that is utilized to access the state of a county’s economic activity. It provides and insight and the overall snapshot of a county’s economy state across the continent. Irrespective of its forms the above list of the top 10 GDP countries 2022 that can assist investors, entrepreneurs, central banks and policymakers in deciding if an economy is contracting or expanding, if it requires a restrain or a boost, and also to detect for threats such as recession or inflation emergence on their borders.


Leave a Comment