List of Top Ten Countries by Nominal GDP January 2019
(Calculated from IMF data of October 2018 )
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What are the Pros and Cons of the GDP measure?
Cons of the GDP measure
High GDP growth does not equate to growth in living standards. Although high GDP growth allows poorer people to pull themselves out of poverty, it does not necessarily imply that poor people’s income is increasing at a proportional rate to GDP growth. Indeed, often it is the small minority of high-income earners who benefit the highest growth margins in their income and wealth.
Another problem with GDP figures is that these do not reflect the creation of employment on the job market. The creation of employment for women is even less directly impacted by GDP growth, wherein progress in this area may only be achieved through real attitude and policy change. Finally, GDP does not account the impact—positive or negative—on global and local environment.
Pros of the GDP measure
On the other hand, GDP figures are important for business and consumer confidence. They are also important for the electorate, because GDP numbers reflect a country’s ability to improve education, income, health, security, judiciary services, transport and a host of other elements. Even if the measure of GDP does not directly reflect employment and living standard, a healthy GDP growth represents the best chance for a country to resolve all these pertinent problems.
Finally, on the global arena, up-to-date measurement of GDP serves as an important metric for investors. It demonstrates the economic and productive performance of a particular economy. It gives an indication of the consumer market size and the growth of such market size, which is an invaluable information for private entities, governmental organisations, investors, producers and manufactures worldwide.
Up-to-date measurement of GDP has always been very scarce. However, this is about to change as NeutralCommentator.com will seek to provide fresh up-to-date GDP figures of the top ten economies on a six-monthly basis.
As of January 2019, the World’s Top Ten Economies are as follow:
At the 10th position, Canada’s nominal GDP stands at a solid 1.83 trillion US Dollars (USD). Canada is the world’s second largest country in terms of geographical size. It is the fourth largest exporter of both petroleum and gas. Its highest import and export partner is the USA.
Next on the list is Brazil at number 9. This great Latin American country is currently 1.94 trillion USD. Its natural resources include vast amount gold and iron. Its main export partner is China. Brazil is among the top five countries with the largest population.
At the 8th position, Italy’s nominal GDP is 2.12 trillion USD. High unemployment rate and an aging population have been major drawbacks to the Italian economy. Nonetheless, Italy is one of the world’s largest possessor of gold reserve, wealth and exporter of goods.
At the 7th position, United Kingdom’s nominal GDP stands at a solid 2.88 trillion USD. The United Kingdom is currently seeking Brexit, as its people wish to take their destiny in their own hands. The pound sterling has suffered greatly as a consequence, while the British economy has been sluggish at best. However, the British economy is resilient. Within a year or two from now, the United Kingdom is very likely to regain its ancient glory.
Next on the list is France at number 6, with a current GDP of 2.85 trillion USD. France is the world’s top tourist destination. It has a competitive chemical industry and a substantial manufacturing base and it is also home to some of the largest companies in the world. It has. It has swapped GDP position many times with the United Kingdom.
The 5th position is occupied by India. Although relatively poor compared to developed nation, India’s economy is powering ahead at fast pace in all sectors. It has a huge young population. It GDP growth has received the accolade of being the fastest among G20 nations. Currently, its GDP is 3.02 trillion USD.
At the 4th position, Germany’s nominal GDP stands at a noteworthy 4.2 trillion USD. Germany has strong manufacturing base, which remains competitive despite China’s rise. It is the leading and most influential power with the European Union, representing 28% of the Euro area economy. In 2017, Germany recorded the highest trade surplus (296 billion USD) in the world, which makes it the world’s largest net exporter.
Japan’s nominal GDP is currently at the 3rd position. It is a major manufacturer and exporter of electronic goods. It is also the world’s second largest exporter of automobiles. It is well known for the production of high-tech and precision goods. Japan’s GDP is 5.2 trillion USD.
At number 2, China is a major driver of global economy. Its nominal is GDP 14.78 trillion USD. It is the world’s largest manufacturer and exporter of goods, with a foreign-exchange reserve of 3 trillion USD. China has also been actively expanded its overseas footprint, in recent years, by investing massively in large infrastructure projects in Latin America, Middle-East, Africa and other parts of the globe.
At the 1st position, the USA’s nominal GDP stands at an impressive 20.92 trillion USD. It is the world largest consumer market (14 trillion USD). It is the world’s largest trading nation, with the largest industrial sector. It is also the home to the headquarters of many of the world’s largest companies.
The World’s Top Ten Economies are summarised in the table below:
It is important to note that the yearly growth rate reflects the average growth of the last three quarters from April-December 2018. Undoubtedly, the next quarter will decide the final growth rate of each country. The above figures have been calculated by using the IMF data released in April and October 2018.
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Useful Resources
https://www.imf.org/external/datamapper/NGDPD@WEO/OEMDC/ADVEC/WEOWORLD
https://www.weforum.org/agenda/2018/04/the-worlds-biggest-economies-in-2018/
https://www.statista.com/statistics/268173/countries-with-the-largest-gross-domestic-product-gdp/
https://www.investopedia.com/university/releases/gdp.asp
https://ourworldindata.org/economic-growth
https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/economic-iondicators-and-the-business-cycle/real-vs-nominal-gdp/a/lesson-summary-real-vs-nominal-gdp
https://www.gov.uk/government/news/gross-domestic-product-gdp-what-it-means-and-why-it-mattershttps://www.cnbc.com/id/44505017
https://www.masterclass.com/articles/what-is-gdp#which-formula-should-you-use-to-calculate-gdp
How to cite this article
NeutralCommentator.com (2019), “List of Top Ten Countries by Nominal GDP January 2019”, NeutralCommentator.com, [online] http://www.neutralcommentator.com/international-economics [Retrieved on DAY/MONTH/YEAR]