In this article, we’ll take a look at the world’s 22 largest economies in 2022.If you want to learn more about the world’s largest economy, go directly to The 5 largest economies in the world in 2022.
The economy of a country is related to how a country produces and consumes goods and services. When the economy grows, the quantity of goods and services usually increases. When the economy slows, growth in the quantity of goods and services produced can slow or even contract.
The history of the world’s largest economy
In terms of the largest economies in 2022, many of the world’s economies are located in the West, because the West developed first. With the beginning of the Industrial Revolution in the United Kingdom, then European countries appeared one after another, and the United Kingdom and some European countries took the lead in developing.
Later, when the British immigrated to the United States, they brought with them valuable technical knowledge that also helped modernize the United States. Given its vast resources, the United States emerged as a leading economic power in the early 1900s. Given that the country was the only one that remained virtually untouched during World War II, the U.S. economy became the dominant global economy.
In recent decades, countries like China have modernized while growing their gross domestic product. For many years, China has been one of the fastest growing economies in the world, and thanks to the growth, China is now the second largest economy by GDP.
In the future, India and other emerging market economies are likely to grow significantly in size.
Modern economies use central bank-backed currencies, not gold-backed currencies. Today’s largest economies are also closer in terms of trade with other countries. McKinsey & Company pointed out that
Globalization is a long-term phenomenon: the share of merchandise exports in global GDP doubled, from 4 percent in 1945 to 9 percent in 1970, and doubled again in the 1980s. By 2017, cross-border trade in goods and services accounted for 28% of global GDP. In addition, the continuous rise of economies such as China and India, as well as the rise of seamless communications such as mobile phones and the Internet, have accelerated the pace of globalization and deepened its impact. Overall, this is a very good thing: the spread of globalization has lifted billions of people out of poverty.
Many of the largest economies are also very innovative and more service-oriented.
With inflation stubbornly high, the Fed has hiked rates five times in 2022 alone, and many analysts believe the central bank will raise rates further this year.
Given the headwinds, U.S. economic growth is likely to slow in the near term, as well as globally.
For our list, we used the 2021 nominal GDP provided by the World Bank and assumed that the world’s largest economy in 2022 will be similar to the world’s largest economy in 2021.
Some of the economies on this list may vary in size in terms of purchasing power parity. For example, for a country like China or India, both economies are bigger in terms of purchasing power parity because the dollar can go farther in these countries than in the US.
The 22 largest economies in the world in 2022
2021 GDP: $627.44 billion
Sweden has a developed economy, with a GDP of $627.44 billion in 2021 and a population of only 10.42 million. In 2019, the World Economic Forum further described the Nordic country, “Sweden, Denmark and Finland have not only become one of the most technologically advanced, innovative and dynamic economies in the world, but also offer better living conditions. and better social protection, more cohesive and sustainable than peers with similar levels of competitiveness.”
2021 GDP: $674.05 billion
Due to economic growth, Poland has one of the largest economies in Eastern Europe, with a GDP of $674.05 billion in 2021. The World Bank added: “Poland’s diversified economy has proven to be one of the most resilient in the EU, recovering strongly in 2021 after a modest contraction of 2.2% in gross domestic product (GDP) in 2020. Robust macro The economic framework, effective access to EU investment funds, a sound financial sector, better access to long-term credit and access to the European labour market, all support long-term inclusive growth and poverty reduction.”
2021 GDP: $812.87 billion
Given the country’s 2021 GDP per capita of $93,457.44, Switzerland is one of the richest countries in the world. Switzerland also has the world’s 20th largest economy, given the country’s total GDP that year was $812.87 billion.
2021 GDP: $815.27 billion
Given its population of 84.1 million and a GDP per capita of USD 9,626.1 in 2021, Turkey has huge potential for economic growth. However, like other countries, Turkey is facing inflationary headwinds, which could slow economic growth in the short term. In 2021, the country’s GDP will be $815.27 billion.
18. Saudi Arabia
2021 GDP: $833.54 billion
Saudi Arabia is one of the largest economies in the Middle East, with a GDP of $833.54 billion in 2021. While the country has benefited from higher oil prices from 2021, Saudi Arabia has started to diversify its economy away from hydrocarbons in light of its Vision 2030 initiative.
2021 GDP: $1.02 trillion
The Netherlands is one of the most developed economies in Europe, with GDP per capita and productivity comparable to the best economies in the OECD. The Netherlands also has lower inequality than most advanced economies. With a GDP of $1.02 trillion in 2021, the Netherlands ranks 17th in our 2022 list of the world’s 22 largest economies.
2021 GDP: $1.19 trillion
Indonesia is one of the largest economies in Asia, with a nominal GDP of $1.19 trillion in 2021 and a GDP purchasing power parity of $3.57 trillion. Given its population of over 276 million, Indonesia is likely to experience considerable economic growth in the coming decades. If the country achieves its growth potential over the next few decades, Indonesia will rank higher on this list in terms of nominal GDP.
2021 GDP: $1.29 trillion
Mexico is rich in resources, has a population of approximately 130 million, and is close to the United States, with great potential for future growth. Given its $1.29 trillion GDP, Mexico is Latin America’s second largest economy.
2021 GDP: $1.43 trillion
With a GDP of $1.43 trillion in 2021, Spain is one of the largest economies in Europe. Despite international headwinds, Spain’s economy has grown quite rapidly relative to other developed countries. The Spanish government expects its GDP to grow by 4.4% in 2022 before slowing to 2.1% in 2023.
2021 GDP: $1.54 trillion
Australia has one of the highest GDP per capita in Asia, with GDP per capita approaching $60,000 in 2021. The country’s 2021 GDP is also $1.54 trillion. On a single sector basis, health and education accounted for 13.2% of economic output, while mining accounted for 11.5%. Exports to China and Japan also helped boost the economy. The Australian government writes about why the country is primed for future growth,
Two other factors underpin our resilience: location and diversity. Fast-growing Asia will account for 44% of global GDP by 2026. Australia’s trade is already geared towards Asian economies, particularly in minerals, energy, services and agriculture. Additionally, our diverse and productive economy is resilient to economic shocks, including ongoing pandemics.
2021 GDP: $1.61 trillion
As of 2021, Brazil’s GDP is $1.61 trillion, with a GDP purchasing power parity of $3.4 trillion. Brazil is rich in land, resources and a population of 214 million, with huge growth potential in the future. Given the fairly high interest rates, economists estimate that the Brazilian economy could grow by 2.39% and 0.5% in 2022 and 2023.
2021 GDP: $1.78 trillion
Given its abundance of land and resources, Russia has the 11th largest economy in the world, with a nominal GDP of $1.78 trillion in 2021. The country also has the world’s sixth-largest economy with a 2021 GDP of $4.79 trillion and a 2021 PPP of $4.79 trillion. However, the Russian economy faces headwinds due to Western sanctions due to the Ukraine-Russia war in 2022.
10. South Korea
2021 GDP: $1.8 trillion
South Korea has one of the most developed economies in Asia, thanks to a well-educated workforce, a strong export sector and a high-tech economy. Although it is a relatively small country, South Korea is one of the largest economies in Asia as its 2021 GDP of $1.8 trillion ranks 10th on our 2022 list of the world’s 22 largest economies.
2021 GDP: $1.99 trillion
Given its vast amount of land, resources and proximity to the United States, Canada has one of the largest economies in the world with a GDP of $1.99 trillion. While it has historically been an economy driven by natural resources, Canada’s economy is now dominated by its services sector.
2021 GDP: $2.1 trillion
Italy has the eighth largest economy in the world, with a GDP of $2.1 trillion in 2021. Although inflation rose to 12.8% in October, the Italian government expects GDP to expand by 3.3% in 2022 and 0.6% in 2023. In the long run, Italy has the potential to grow with higher productivity.
2021 GDP: $2.94 trillion
Given its GDP of $2.94 trillion in 2021, France is one of Europe’s largest economies, ranking 7th on our 2022 list of the world’s 22 largest economies. Despite the headwinds, France also expects its GDP to grow by 2.7% this year and 1% in 2019 and 2023.
2021 GDP: $3.17 trillion
With a nominal GDP of $3.17 trillion, India is the sixth largest economy in the world, while India’s GDP is the third largest in the world with a purchasing power parity of $10.2 trillion. With a population of 1.4 billion and a young population, India has huge potential for economic growth in the future. McKinsey & Company stated in October 2022, “India is poised to be a powerful economic growth engine: it has one of the fastest growing economies in the world, the third largest start-up ecosystem and is poised to become a global powerhouse in technology services, digital and manufacturing .”
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Disclosure: None. The 22 largest economies in the world in 2022 Originally published on Insider Monkey.