Discover the countries with the largest GDP in the world according to the IMF. There is a change in the ranking.
Twice a year, the IMF releases a huge amount of data on the economic strength of countries around the world, including gross domestic product (GDP). It determines the economic activity of a country, its variation is its growth rate.
10. South Korea: 1.670 billion
South Korea is one of the four Asian dragons (Hong Kong, Singapore, Taiwan). The country experienced exceptional economic growth as its GDP was close to an African country in the 1960s.
South Korea’s economy is organized around its three major industries: electronics, automobile manufacturing, and the steel industry.
9. Canada: 1.760 billion
The Canadian economy is strongly interwoven with the US economy. In this regard, Donald Trump’s recent sanctions against his neighbor are a real concern.
Canada has significant natural resources (timber, oil, and minerals), a highly educated labor force, and powerful banks.
8. Italy: 2.110 billion
Despite its significant debt, Italy is one of the main economies on the planet. The problem is that it is cut in half. The north of the country (Milan, Turin) is very developed there while the south lives mainly from tourism. The unemployment rate remains high, as does corruption.
Since the crisis, Italy has embarked on several drastic reforms combining austerity and attempts to reduce its deficit. These measures led to a rejection of the policy which is characterized today by the rise to power of the extremes (The Northern League and the 5 Star movement).
7. India: 2.830 billion
The population of India is huge. Its GDP is therefore significant but remains well below China or the United States. After strong growth of 8% on average between 2002 and 2012, the global economic crisis has taken its toll.
630 million Indians are still affected by poverty (according to the UNDP ). It is the service sector that continues to drive growth. Its big challenge is that of developing the agricultural sector. One-third of children suffer from malnutrition.
6. United Kingdom: 2.860 billion
The UK was at its worst in the late 70s, early 80s Strict liberal reforms of Margaret Thatcher have put the country back on track, not without causing a stir.
The UK economy is characterized by its strong banks and financial center (the City). But income inequalities are greater than in the rest of the European Union. A union that the country has decided to leave following the decision of a referendum on Brexit.
5. France: 2.920 billion
Like all Western economies, France is centered around the service sector. Its structural reforms have often had little effect. Like the others, the French economy, embedded in the European and world market, suffered the damage of the crisis, without however collapsing.
France is experiencing weak, but stable growth. The country is also characterized by a very rich population: there are no less than 579,000 millionaires in France.
4. Germany: 4.320 billion
The German economy is by far the most powerful in Europe. It is the third-largest exporter after the United States and China, its trade balance being largely in surplus. Germany is of course the automotive industry, but also a qualified working population and unions involved in their industry on the co-management model.
In crisis after reunification (1989), the reforms of the socialist Gerhard Schröder allowed the German economy to regain competitiveness. The German model is now touted throughout Europe but also irritates. In this regard, the US sanctions against the import of steel and aluminum directly target the German economy.
3. Japan: 5.100 billion
Japan has the largest public debt in the world. But don’t panic, it is mostly owned by the Japanese. With its 126 million inhabitants, Japan is the 4th most exporting country in the world. The unemployment rate is the lowest among the G20 countries.
However, the country was hit hard by the 2008 crisis and the Fukushima nuclear accident (2011) contributed to increasing its imports. China took the opportunity to overtake Japan in the ranking.
2. China: 14.490 billion
With an active population of 800 million people, China is a veritable economic war machine. Agriculture only represents 10% of GDP, industry has taken its place causing a significant trade surplus. China, therefore, enjoys foreign reserves totaling 3.820 billion (2014). China is thus allowing itself to buy back the debt of its competitors, gradually installing its future domination. Chinese finance is very powerful but remains thwarted by what is called shadow banking, uncontrolled finance that exceeds 4.800 billion dollars (2014).
China has the particularity of having fully integrated into the world economic system while preserving a strong state, which retains control over its economy. The problem remains inequalities, mainly between cities (east) and countryside (west).
1. United States: 21.920 billion
The United States retains its first place, but for how long? China is following them more and more and it seems certain that things are set to change within a few years. But the United States remains all-powerful. First thanks to the dollar, the benchmark currency at the global level, but also thanks to its raw materials and its quasi-monopoly (Western) on new technologies with its big five GAFAM (Google, Amazon, Facebook, Apple and Microsoft, supplemented by NATUs (Netflix, Airbnb, Tesla, and Uber).
The fact remains that poverty affects 50 million Americans and that the country is not immune to the explosion of an economic bubble like the Internet bubble (2001) and the real estate bubble (2008). In 2008, the US government allocated $ 900 billion in various loans and bailouts. The Covid-19 crisis has not yet changed this ranking. It must be said that in a globalized economy, the pandemic affects everyone even if of course there are differences. But not enough to train in the top 10 of the standings.