Tourism is an important industry, and France receives the most visitors of any country each year. Throughout this list and article, the term GDP refers to nominal GDP in current U.S. dollars unless otherwise specified. Erika Rasure powertrend is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.
- Ireland had the fastest growing economy in Europe in 2022 with a GDP growth of 12.2%, driven by higher private consumption, investments by multinationals, and continued growth in exports.
- The calculation of PPP rates is the task of the International Comparison Program (ICP), which gathers data on the prices of thousands of goods and services in each country in a particular year.
- The services of guest workers are thus reallocated to the worker’s home country.
- To skip our detailed analysis, head directly to the 10 Largest Economies in the World in 2023.
- The country’s central bank has hiked interest rates to 97% with the hope that this measure will incentivize investments in the local currency.
Given it has considerable oil and gas reserves, the country is an energy superpower that also has substantial land resources. Belgium is a developed EU economy coinmama exchange review with a 2021 GDP of nearly $600 billion. Given its geography and membership in the EU, Belgium is the host country to the EU and NATO headquarters.
List of countries by GDP (PPP)
GDP (PPP) means gross domestic product based on purchasing power parity. The data given on this page are based on the international dollar, a standardized unit used by economists. Certain regions that are not widely considered countries such as Hong Kong also show up in the list if they are distinct jurisdiction areas or economic entities. The two charts below also show, for twenty-three countries for which the necessary data is available, how each country’s actual growth rate compares to its estimated potential growth rate. Potential growth is defined as the maximum rate of growth that a country can sustain indefinitely.
The Biggest Economies in the World
Given it spends more on research and development as a percentage of GDP than any other nation at 5.44% in 2020, Israel is regarded by many as a leader in innovation. As a result of its innovation leadership, the country has a GDP per capita of $51,430.08 and an overall GDP of $481.59 billion in 2021. In terms of investing returns, countries that are more stable and advanced in technology, and that grow faster than the other countries generate higher returns for their stock market investors. For instance, the US economy has clearly been the leading the world in technological advancement since the early 80s and its stock market returned slightly more than 10% annually over the last 40 years. That’s why Warren Buffett’s “never bet against America” motto has been working. If Buffett was born in the Soviet Union and employed a “never bet against Russia” investing approach, he would have failed as an investor.
Gross domestic product or gross national product?
China is the second largest economy in the world with a nominal GDP of 14 trillion US dollars. Sweden is a Scandinavian country with a GDP of $586 billion in 2022, ranking 24th on our list based on economic data released by the IMF. However, the country is going through recession and the economic outlook for 2023 was described by the Swedish government as ‘gloomy’ in as early as October bitit review last year. According to reports, the economy is set to contract by 1% instead of the projected 0.7% figure. Belgium hosts the headquarters of NATO and the European Union, making it one of the most politically influential countries in the world. According to OECD’s economic outlook for Belgium, the country is forecast to have a GDP growth of 0.9% in 2023 which will rise to 1.4% in 2024.
Gift economy
It registered a GDP growth rate of 2.6% in 2022, which is expected to decline in 2023 to 1.6% due to recession in the U.S. and EU, and a slowdown in the electronics industry. The Saudi economy is heavily based on oil and is the world’s largest oil exporter. Converting data in local currencies to international-$ means dividing the figures by a set of ‘exchange’ rates, known as Purchasing Power Parity (PPP) rates.