How do you assess the size of an economy? You might think it has to do with the quality of life of the average citizen. Or that a large economy is characterized by fewer poor people. Or by how polished the associated country’s big cities look.
In reality, none of those truly reflect the worth of a large economy. An economy, for the most part, is measured by its GDP. GDP or Gross Domestic Product measures the actual value added through domestic activity (production of goods and services) during a certain period.
By that measure, the world’s largest economies as of 2022 are as follows:
1. United States
No surprises here. The USA is the largest economy in the world in 2022 and has held the title since the early 1900s.
It boasts a GDP of USD 22.3 trillion.
China overtook Japan to become the world’s second-largest economy 13 years ago, in 2010 and has held the position ever since.
Its GDP in 2022 was USD 19.9 trillion.
These two economies lead the largest economies of the world (2022) by a long shot – they’re the only two with double-digit GDPs, and the next contender’s GDP is about 1/4th that of China.
Japan actually held the title of the second-largest economy in the world all the way from 1978 until 2010 when it was displaced by China. It does, however, enjoy the status of second-largest developed economy, and it holds
Japan’s GDP in 2022 was USD 4.9 trillion.
Europe’s largest national economy, Germany is the fourth-largest economy in the world in 2022, although there is quite a bit of anticipation around India overtaking Germany for the spot. Germany has held its position since the end of World War II.
Its GDP stands at USD 4.2 trillion as of 2022.
People might ask how possible it is possible for India to be among the largest economies in the world in 2022, given its rampant poverty. However, it is important to note the fact India’s Gautam Adani is the 3rd richest man in the world, and Mukesh Ambani is the 11th richest man in the world. The country also boasts the third-largest number of billionaires in the world, after the USA and China, in 2023.
India’s per-capita GDP is low, but its total GDP is fairly elevated, at 3.5 trillion in 2022.
6. United Kingdom
Remember that India’s population is 20 times that of the UK. India overtook the UK as the 5th largest economy in the world in 2021 – economists blame the UK’s fall from its position to a “Brexit hangover”.
The UK’s GDP was 3.3 trillion in 2022.
France actually held sixth place among the largest economies in the world, until India took its spot in 2017. In 2018, France actually reclaimed its spot at sixth position for a short time.
France’s GDP stands at 2.9 trillion.
Canada rose a position in 2022 from ninth position in 2020, and from losing its spot on the top 10 list altogether back in 2019.
It has a GDP of 2.2 trillion.
Italy represents the third-largest economy in Europe,
The country has a GDP of 2 trillion.
The country’s GDP last year stood at 1.8 trillion
These are the world’s largest economies by the traditional definition that tracks GDP. Meanwhile, Japan, Germany, and the United Kingdom boasted the highest employment rates. Meanwhile, in terms of per capita parity, Qatar tops the list.