Ranking of countries economically
The world's leading economies are ranked in descending order as follows:
- The United States of America.
- United kingdom.
How to measure a country's economy
The use of macroeconomic indicators is the easiest way to measure the economy of a particular country. These indicators show the extent of the country’s economic growth, inflation rates, and global exchange rates for local currencies.
These global indicators include the following:
- Gross Domestic Product: It is the broadest indicator of overall economic activity.
- Unemployment rates: Unemployment is an important indicator; As the increase in the number of unemployed people reduces the demand for goods and services due to the lack of physical liquidity.
- Standard Prices of Consumer Goods: It is the main indicator that shows the amount of inflation in a particular country.
- Purchasing power parity: This indicator is the tool by which the prices of goods in different countries are compared and the purchasing power of each currency is determined in relation to each other.
Ranking of countries according to GDP
United States of America:
The United States' monetary GDP is the largest in the world and is largely derived from the economic services sector that includes finance, real estate, insurance, professional and business services, and health care.
China has the second-largest economic power in the world and the largest in terms of purchasing power, and it is expected that China will economically surpass the United States in the coming years; This is due to the huge population growth that China is going through.
Japan ranks third in terms of monetary GDP; This is a result of the strong Japanese economic construction resulting from the strong cooperation between the government and industrial bodies and the expertise specialized in advanced technology, as the gross domestic product in 2019 amounted to nearly $5 trillion.
Germany has the highest GDP in Europe, equaling $3.86 trillion for the year 2019, due to its highly skilled labor force, and therefore it is the largest exporter of machinery, vehicles, chemicals, and other goods. However, this economy faces some challenges due to factors related to the sector. Population.
India's monetary gross domestic product (GDP) in 2019 amounted to approximately 2.87 trillion, but its large population density prevented the decline in per capita GDP. The Indian economy is a mixture of traditional agriculture and handicrafts, in addition to agriculture and industry using modern methods, The development of the service sector has boosted India's economy, as it is one of the largest exporters of technology services, and the liberalization in India's economy since the nineties of the twentieth century has led to a huge rise in the country's economy.
The gross domestic product of the United Kingdom in 2019 amounted to approximately $2.83 trillion, thanks to the large services sector that includes catering, insurance, business services, and others.
France's monetary gross domestic product in 2019 amounted to approximately $2.72 trillion, and its economy includes the private and government sectors; As many private and semi-private companies support the economy with various industries, while government sectors are witnessing participation in the field of defense and electric power generation, it is worth noting that tourism is the basis for moving the economy in France, which receives a large number of visitors every year.
Italy's monetary GDP amounted to nearly $2 trillion in 2019, and it is the third-largest economy in the Eurozone. The level of Italy's economy varies according to the region, where the industrial economy is more developed in the northern regions and some southern regions.
Brazil's economy is the first in South America, with a gross domestic product of 1.84 trillion dollars in 2019, as the chain of heavy industries such as aircraft and automobiles is one of the most important economic resources in Brazil, in addition to the agricultural sector, especially the cultivation of coffee and soybeans, as well as resource extraction. mineral and energy.
Canada's monetary GDP is approximately $1.74 trillion for the year 2019, as Canada has the third-largest oil reserves in the world, and includes many different industries, in addition to the developed energy sector and the service sector.
Economic growth refers to the change in the percentage of GDP, which changes the monetary GDP value for inflation, and affects GDP in personal finance, job growth, and investments, where investors are interested in the economic growth rate of any country to decide to start their investments if they fit the criteria or not.
Gross Domestic Product (GDP) is defined as the total market value of goods, merchandise, and services in their final form within a country during a given period, and it is the most widely used measure of economic health and includes private and public consumption, private and public investment, in addition to the value of exports minus imports.
GDP can be calculated to track economic growth in three ways:
Production: it is the value of intermediate inputs subtracted from the total sales at each stage of production.
Spend: the sum of purchases made by end-users.
Income: the sum of the income of all the factors of production.