Countries by GDP: 30 Largest Economies in the World

Insider Monkey Team
9 min read

In this article, we will take a look at 30 largest economies in the world by GDP. If you want to see more largest economies in the world by GDP, go directly to Countries by GDP: 10 Largest Economies in the World.

GDP is the sum of the monetary value of the finished goods and services produced in a country in a year.

Generally, the bigger the GDP, the bigger a nation's economy. If GDP increases, a country might have more goods and services that can improve the quality of living in the country.

In terms of GDP, there are two types, nominal and PPP.

Nominal GDP is the value of all the finished goods and services produced in a country in a year based on current prices without adjusting for inflation.

GDP, PPP factors in the price difference of goods and services in different countries when calculating the total product.

In many emerging market countries, the price of goods and services cost less than the price of the same goods and services do in the United States. As a result, nominal GDP doesn't fully reflect the amount of goods and services produced in those countries. To more accurately reflect the purchasing power, GDP, PPP makes adjustments. Given adjustments can be difficult and subjective, GDP, PPP is harder to calculate.

In terms of which metric is better, both have their uses.

When it comes to a country's living standard, GDP, PPP is regarded as the better metric because it reflects purchasing power better.

Nominal GDP, however, is much more useful than GDP, PPP when it comes to financial flows.

In terms of the world's largest economies, many of the leading economies are countries that are either very developed like Japan or have large populations and resources like India and China. Although there are exceptions, emerging markets tend to have lower nominal GDP than their GDP, PPP.

In terms of GDP growth, the growth of GDP of many nations were relatively strong in 2022 given the rebound from the pandemic. With the U.S. Federal Reserve having raised interest rates seven times this year alone, however, many analysts think there could be an economic slowdown next year.

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.

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