The United States GDP is almost as much as the next three largest economies in the world, combined – with a GDP of $19.39 trillion – China at $12.01 trillion, Japan at $4.87 trillion and Germany at $3.68 trillion.
1. The United States GDP
US Nominal GDP: $19.39 trillion
US GDP (PPP): $19.39 trillion
2. China GDP
China Nominal GDP: $12.01 trillion
China GDP (PPP): $23.15 trillion
China has experienced exponential growth over the past few decades, breaking the barriers of a centrally planned, closed economy to evolve into a manufacturing and exporting hub of the world. China is often referred to as the “world’s factory” given its huge manufacturing and export base. However, over the years, the role of services has gradually increased and that of manufacturing as a contributor to GDP has declined relatively. Back in 1980, China was the seventh-largest economy with a GDP of $305.35 billion while the size of the U.S. then was $2.86 trillion. Since it initiated market reforms in 1978, the Asian giant has seen an economic growth averaging 10% annually. In recent years, the pace of growth has slowed although it remains high in comparison to its peer nations.
3. Japan GDP
Japan Nominal GDP: $4.87 trillion
Japan GDP (PPP): $5.42 trillion
4. Germany GDP
Germany Nominal GDP: $3.68 trillion
Germany GDP (PPP): $4.17 trillion
The nation has been dependent upon capital good exports which suffered a setback post-financial crisis of 2008. The economy grew by 1.9% and 2.5% in 2016 and 2017 respectively. However, the IMF has revised growth downwards to 2.2% and 2.1% respectively in 2019 and 2020 given the threat of rising protectionism and Brexit. To revise its manufacturing strength in the current global scenario, Germany has launched Industrie 4.0 — its strategic initiative to establish the country as a lead market and provider of advanced manufacturing solutions.
5. United Kingdom GDP
UK Nominal GDP: $2.62 trillion
UK GDP (PPP): $2.91 trillion
6. India GDP
India Nominal GDP: $2.61 trillion
India GDP (PPP): $9.45 trillion
7. France GDP
France Nominal GDP: $2.58 trillion
France GDP (PPP): $2.83 trillion
8. Brazil GDP
Brazil Nominal GDP: $2.05 trillion
Brazil GDP (PPP): $3.24 trillion
9. Italy GDP
Italy Nominal GDP: $1.93 trillion
Italy GDP (PPP): $2.31 trillion
On the positive side, exports and business investment are driving economic recovery. The economy clocked 0.9% and 1.5% in 2016 and 2017 respectively. It is projected to edge down to 1.2% in 2018 and 1.0% in 2019.
10. Canada GDP
Canada Nominal GDP: $1.65 trillion
Canada GDP (PPP): $1.76 trillion
11. South Korea GDP
South Korea Nominal GDP: $1.53 trillion
South Korea GDP (PPP): $2.02 trillion
12. Russia GDP
Russia Nominal GDP: $1.52 trillion
Russia GDP (PPP): $4.01 trillion
The dependence of the Russian economy on oil was exposed during the 2008-09 global financial crisis and eventually again in 2014. The situation worsened with the imposition of sanctions by the West. The economy contracted by 0.2% in 2016, however, it rebounded with a 1.5% growth in 2017. IMF projects a growth of 1.7% and 1.5% during 2018 and 2019 respectively.
13. Australia GDP
Australia Nominal GDP: $1.38 trillion
Australia GDP (PPP): $1.24 trillion
In terms of different sectors of its economy, agriculture and industry contribute about 4% and 26% each while its service sector which engages 75% of its employed population contributes 70% to its GDP. It is estimated that the economy of Australia will be close to the $2 trillion mark by 2023 and its GDP based on PPP which is currently at $1.24 trillion will be nearing $1.65 trillion during the same time period. Australia ranks 11th on the measure in terms of GDP per capita with $55,707 per capita GDP in 2017.
14. Spain GDP
Spain Nominal GDP: $1.31 trillion
Spain GDP (PPP): $1.77 trillion
Spain replaced the United Kingdom to become the second most visited country in the world with a huge influx of inbound tourists. In terms of sectors, agriculture has traditionally played a crucial role, however, with time the contribution of the sector has fallen to about 3%. The country remains a major exporter of olive oil, pork, and wine. Some of the prominent industrial sectors are automobiles, chemicals, pharmaceuticals, industrial machinery. The economy grew 3.1% in 2017 and is expected to edge down to 2.8% and 2.2% in 2018 and 2019 respectively.
15. Mexico GDP
Mexico Nominal GDP: $1.15 trillion
Mexico GDP (PPP): $2.45 trillion
The economy expanded by 2.9% and 2% during 2016 and 2017. Over the next two years, the IMF projects a growth of 2.3% and 2.7% respectively. The share of agriculture in the Mexican economy has remained under 4% over the last two decades while its industry and services contribute around 33% and 63% to its output. Automotive, oil and electronics are among the developed industries while financial services and tourism are prominent contributors within services.
16. Indonesia GDP
Indonesia Nominal GDP: $1.01 trillion
Indonesia GDP (PPP): $3.24 trillion
Indonesia is the largest economy in Southeast Asia and the 16th-largest on the global map. The Indonesian economy has shown tremendous progress over the last two decades. It was a victim of the Asian financial crisis in 1997. However, it has charted impressive growth ever since.
The economy is now a part of the trillion-dollar club with a nominal GDP of $1.01 trillion. The World Bank cites its enormous progress on poverty reduction— “cutting the poverty rate to more than half since 1999, to 10.9% in 2016.” Its GDP per capita at $3,875 is way higher than $857 in 2000. Indonesia, the fourth most populous nation is the seventh-largest economy with a $3.24 trillion GDP in terms of purchasing power parity. Among sectors, agriculture contributes about 14% to its GDP while industry and services add approximately 43% each to its output.
17. Turkey GDP
Turkey Nominal GDP: $849.48 billion
Turkey GDP (PPP): $2.17 trillion
Turkey with its $849.48 billion economy is the 17th-largest economy in the world. The share of Turkey’s middle-class increased from 18% to 41% of the population between 1993 and 2010, according to the World Bank and the country joined the upper-middle income group in the late 2000s.
The economy is projected to join the trillion-dollar club by 2020 while its GDP-PPP will reach $3.05 trillion by 2023. Between 1960 and 2012, Turkey’s average annual GDP growth was 4.5%. The economy has been growing at an impressive pace since the 2000s, driven by both industry and services.
The economy witnessed macroeconomic and fiscal stability while its employment and income levels witnessed an increase. The economy registered a 7.4% growth in 2017. However, it is projected to soften to 4.2% in 2018 amid rising external debt, depreciating currency, rising inflation, and unemployment.
18. Netherlands GDP
Netherlands Nominal GDP: $825.75 billion
Netherlands GDP (PPP): $916.07 billion
The Netherlands, the sixth largest economy in the European Union is the 18th-largest economy in the world. Back in 1980, the Netherlands was the twelfth largest economy globally with a GDP of $189.49 billion. Today, the country has a nominal GDP of $825.745 billion and a GDP-PPP of $916.07 billion. It ranks 13th on the basis of per capita income with GDP per capita of $48,345.
The economy is backed by abundant natural resources, booming tourism and sound industries such as food processing, chemicals, electrical machinery, and petroleum refining. The Netherlands can boast of the highly mechanized, highly productive agricultural sector which makes it among the top agricultural exporters globally. Despite its small nation, the Netherlands is a major player in the world’s trade.
19. Saudi Arabia GDP
Saudi Arabia Nominal GDP: $683.82 billion
Saudi Arabia GDP (PPP): $1.77 trillion
Saudi Arabia is predominantly an oil-based economy. The country possesses around 18% of the world’s proven petroleum reserves. It ranks as the largest exporter of petroleum with oil and gas sector accounting for about 50% of its GDP and 70% of export earnings. Saudi Arabia is rich in other natural resources like natural gas, iron ore, gold, and copper.
The economy showed recovery from the oil shock in 2016 with a 1.7% growth. In 2017, it incurred huge budget deficit financed by foreign reserves and bond sales. The country is looking to bolster its non-oil economy to diversify its economy and tackle the problem of unemployment. In 2017, its nominal GDP was $683.82 billion while its GDP based on PPP was $1.77 trillion. The economy which slumped by 0.9% in 2017 is expected to grow by 1.9% in 2018 and 2019.
20. Switzerland GDP
Switzerland Nominal GDP: $678.57 billion
Switzerland GDP (PPP): $517.17 billion
Switzerland, one of the most stable market economies in the world. It is the twentieth largest economy in the world with a nominal GDP of $678.57 billion. The country offers a very high standard of living for its people represented by the GDP per capita of $80,590, only behind Luxembourg.
Switzerland has a booming tourism industry and a strong financial sector. Switzerland has a long tradition of industry, especially the clock and watches industry and pharmaceuticals. Agriculture only contributes about 1% to its GDP. The country has a highly skilled workforce and low unemployment (3%). The country’s economy benefits from its stable political system, sound infrastructure, and favorable tax rates. In recent years, its growth rate has hovered between 1-1.5%.
The largest state in the U.S. by GDP is California, which has a $2.97 trillion economy. This makes California not only comparable to Britain, whose GDP came in at $2.81 trillion, but would also make California the 5th largest economy in the world if it were its own foreign nation! Meanwhile, as border issues heat up down south in Texas, the state could trade its local economy for that of our northern border friends in Canada. The GDP of Texas came in at $1.78 trillion while Canada’s followed close behind at $1.73 trillion.
Here are the top ten biggest U.S. states by GDP and their comparable foreign nations
1. California ($2.97T) – United Kingdom ($2.81T)
2. Texas ($1.78T) – Canada ($1.73T)
3. New York ($1.70T) – Korea ($1.66T)
4. Florida ($1.04T) – Mexico ($1.20T)
5. Illinois ($868B) – Netherlands ($910B)
6. Pennsylvania ($798B) – Saudi Arabia ($770B)
7. Ohio ($680B) – Switzerland ($709B)
8. New Jersey ($634B) – Taiwan Province of China ($603B)
9. Georgia ($595B) – Sweden ($555B)
10. Massachusetts ($577B) – Poland ($550B)
While it’s impressive that these large U.S. states outperform countries in the developed world, what might be even more impressive is how even the smallest U.S. states compare favorably to foreign nations. Montana can be viewed in similar economic terms as Ghana, while Wyoming is most similar in size to Jordan. Even the country’s smallest state in terms of GDP, Vermont ($34B), is still larger than the GDP of Sudan ($33B).