Major Economic Powers of the World

Largest Economies of the World (GDP)

1.    The European Union, considered a single economy, has a GDP of approx. 18 trillion international dollars (Equivalent to the U.S. dollar’s purchasing power at any given point in the United States). With a population of over 500 million, the European states have created a singular market through a series of generalizing laws that enable them to act as a single unit in terms of GDP.

2.     In terms of any single nation, the United States has the largest gross domestic product of any country, approximately $14.3 trillion. The United States’ has a capitalist mixed economy, is the largest importer of goods in the world, and also one of the largest exporters (Machinery being the highest export, and vehicles the highest import). However, recent reports have indicated that the United States has been in a recession since late 2007.

3.    China has become the world’s third largest economy, and has a GDP upwards of $8 trillion. Since 1978, with the introduction of several market based economic reforms, the Chinese economy has become the 8th fastest growing in the world (The fastest major economy). The PRC implements a market economy, mainly based on private property and low cost manufacturing.

4.    The island nation of Japan surged in economic growth from 1960-1980, an average increase of 6%. Currently the nation’s GDP is roughly $4.5 trillion, although some estimates place that number at $5 trillion. Over 75% of the Japanese economy is based in the service sector, while the nation is home to many technologically advanced manufacturers. Like the United States, Japan experienced an economic collapse in 2000, and has been slow to recover.

5.    For over three decades, India’s economy was constrained by extensive regulation, protectionism, and public ownership, leading to poor growth and corruption. Beginning in 1990, India has seen an economic explosion similar to China. The country’s GDP in 2008 was approximately $3.3 trillion adjusted for purchasing power. 50% of India’s economy is based in the service sector and 30% in agriculture.

6.     Germany (Separated from the E.U.) has the world’s sixth largest economy, with a GDP of approx. $3 trillion. Germany is the largest country in terms of population and GDP in the E.U., and many corporations are situated there. The nation is considered the world’s largest exporter (1.1 trillion in 2007), especially in automobiles, machinery, metals, and chemicals.

7.    After the fall of the USSR in the 1990’s, almost all of the post- Soviet Union countries experienced an extreme economic depression, greater in magnitude to that experienced in the U.S. in the 1930’s. Since then however, due in part to rising oil prices and increased foreign investment, the Russian GDP has experienced an annual growth of over 7%, to a total of approx. $2.3 trillion.

8.    As the first industrialized economy, and the most powerful nation in the 18th and 19th century, the United Kingdom remains a major power in the global economy. The U.K.’s financial system is dominated by the service sector, in other words the financial sector (Over 75%). Many important financial institutions are located in London, including HSBC and Barclays.

9.    France is the third largest economic power in Europe, and the 8th largest globally (Contested with The United Kingdom) at over $2 trillion GDP. The French economy is heavily subsidized by the government, which owns several key infrastructure sectors. France is ranked as the fifth largest exporter, and is based in private enterprise.

10. The largest national economy in South America (And the only one on this list), Brazil has a GDP of approx. $2 trillion. In recent years, Brazil has seen a boom in economic growth similar to China and India, and is included in BRIC (Brazil, Russia, India, and China), which is a group of the most rapidly growing major economies. Recently, Brazil launched a $300 billion program to develop its infrastructure (Roads, Power grid, and Ports).