The Largest Economy in the World
Until recent years, the top three economies accounted for less than half of global output. America dominated the industrial age, followed by Russia and Japan. Britain, however, fell off the list and China briefly jumped into the top three. Now, the US is the largest economy in the world, but India and China are also in the mix.
India is the fastest growing economy in the world
In recent years, India has grown at a staggering rate, and in the coming decade it is expected to become the fastest growing economy in the world. India’s GDP is expected to increase by about 8% per year, and its share of global exports could nearly double. This fast growth is expected to continue despite geopolitical concerns and rising interest rates. While the economy remains volatile, the outlook for India’s future is positive. In a few years, the country’s stock market could deliver 11% annual growth, and the economy will likely surpass the market capitalization of Japan and Germany.
Despite recent economic challenges, India’s growth remains the fastest in the world. Its GDP increased by 13.5% in the April-June quarter, marking the fastest growth rate in a year. The looming threat of recession and rising interest costs will likely slow growth in coming quarters, but it remains the fastest growing economy in the world. By 2030, India is expected to surpass Japan as Asia’s second-largest economy.
The country’s new growth pattern is driven by the single national market, where more consumers and firms are using the modern financial system. The single market is rapidly replacing regional markets, including informal businesses that use cash. Five years ago, this segment of the economy accounted for two-fifths of output and 87 percent of jobs. Many of these investments and reforms came before Mr. Modi’s government took office.
China is projected to be the largest economy in the world
China is projected to become the largest economy in the world by 2028. Previously, the U.S. held that position. However, a new study released by the Centre for Economics and Business Research projects that China will pass the U.S. in that year. The study is based on assumptions that China will continue to grow, and that the Chinese currency will appreciate against the U.S. dollar, which will help its economy grow faster.
The growth of China’s economy has been phenomenal, overtaking Japan only a decade ago. Its growth rate has averaged 6.7% over the past decade, making it one of the fastest sustained expansions of any major economy. Its GDP is expected to be almost $18 trillion by 2021, representing 18.4% of global GDP. With rapid technological development and a booming middle class, China is a strategic rival for the U.S., and it is already pushing American rivals out of many sectors.
China’s population is more than four times larger than America’s. As such, China’s economy may be able to surpass America’s in scale, even before the US grows more sophisticated. For the Chinese economy to become the largest economy, its GDP per capita needs to reach a quarter of America’s GDP. This modest feat has already been accomplished, but most experts believe that China’s economy is capable of more growth in the future.
However, despite this apparent progress, there are many risks for the Chinese economy. One of the greatest challenges is its ageing population. Chinese economists have already flagged these problems. China’s working-age population is declining rapidly and the fertility rate has dropped to only 1.3 births per woman, below the replacement rate of two. China’s demographic profile will soon converge with that of Europe, with over-65s accounting for more than a quarter of the population.
Italy is the ninth-largest economy in the world
Italy’s external sector is critical to the country’s economy. Exports of high-quality products account for a significant proportion of its total output. Lacking natural resources, Italy relies heavily on imported energy, raw materials, and food. For most of its history, Italy has registered trade deficits, but the country has turned the balance towards positive figures over the last two years.
The country is the sixth-largest manufacturing nation in the world, and has a small but dynamic population of small and medium-sized enterprises. Italy also has a robust agricultural sector, and is a net exporter of various goods. Its competitive economy is an important contributing factor to the country’s overall prosperity.
Italy’s GDP is estimated at approximately EUR 1,7 trillion, making it the ninth-largest economy in the globe. Its per capita GDP is approximately $31,630. Its services sector accounts for about 75% of its GDP, while its manufacturing sector accounts for about 65%. The country’s public finance is also among the strongest in the Eurozone, with deficits consistently below the 3% ceiling. The country’s industrial production also decreased in January 2017.
In terms of the primary energy source, Italy uses 185 Mtoe of fossil fuels each year. Petroleum is mostly used in the transport sector, while natural gas is used to produce electricity. Coal is used in the heating and cooling industry. In addition to fossil fuels, Italy uses renewable sources of energy to produce electricity and heat. Natural gas accounts for more than half of the electric energy produced in the country. Until the 1960s, the only source of electricity in the country was hydroelectric power.
Brazil is the ninth-largest economy in Latin America
Latin America is a highly diverse region with several different cultures and political systems. This makes it difficult to compare the overall results of the region’s economies. Average results in Latin America are a mask for country-specific differences, so it is important to compare Brazil to its neighbors based on country-specific economic results. Other key economic players in Latin America include Mexico, Chile, Argentina, and Colombia.
Brazil is a major contributor to GHG emissions, with roads accounting for 86% of total transport emissions. In addition, road accidents in Brazil are among the worst in the region, costing the country approximately 4% of GDP. As a result, Brazil has a long way to go to improve its transportation network.
The country has been a source of significant growth in recent years, but there is still considerable inequality in wealth. The rich earn an average of 23 times more than the poor, while only 2% of the population own land. As a result, the gap between the rich and poor is enormous and poverty is widespread.
The economy of Brazil is highly diversified, with the largest automotive, oil and gas, mining, and chemical industries in Latin America. The country also has a huge agricultural and service sector and is the world’s third-largest market for electronics.
Germany is the fifth-largest economy in Europe
Germany is a large, prosperous country that is home to some of the best-educated and most-skilled people in the world. In 2015, the German economy generated a nominal GDP of $3.5 trillion, and its GDP per capita (PPP) was $4.44 trillion. The country ranks fourth among all countries in nominal GDP and fifth when measured using purchasing power parity. The country also has one of the lowest unemployment rates, with an unemployment rate of 4.2%.
Since 1949, Germany’s economic policy has been based on a social market economy, which guarantees free entrepreneurial activity and social checks and balances. Developed in the post-war period by a German economist named Ludwig Erhard, this concept has helped the country continue to grow economically. Today, Germany is an active participant in globalisation and a champion of a sustainable economic system.
Due to its ageing population, Germany is experiencing a skills shortage. Its working-age population is expected to shrink by 3.9 million by 2030, and by 2060, it will decrease by 10.2 million. As a result, the German government is encouraging immigrants with professional qualifications to come and help fill this gap. Those who are already residents of Germany may want to consider this option if they meet residency requirements.
Germany’s economy is largely driven by exports. Major industries in Germany include car manufacturing, household equipment, and chemicals. In addition, exports of capital goods are crucial to the country’s economic health. In addition, the country is experiencing the fourth industrial revolution, a change brought about by the internet and the digital age. This new trend is known as Industry 4.0, and it embraces solutions and a high degree of system networking in factories.
Sweden is the 20th-largest economy in Europe
Sweden’s economy is one of the strongest in Europe, largely due to its strong competitiveness. In spite of this, it is still dependent on free international trade to maintain a high standard of living. In 1993, the country’s government budget was more than 12% in deficit. However, since 1998, Sweden’s government’s finances have been in surplus. For 2011, the government expects to have a surplus of 99 billion kronor. This has been achieved thanks to tighter budgetary regulations and the change in the constitution to create a more independent Central Bank.
While the Scandinavian countries struggled in the beginning, Sweden took advantage of industrialization and other developments in the West and North America to move up the economic ladder. Earlier, agriculture provided the bulk of income for Scandinavian countries. The shift to industry and the development of new technologies brought with it a larger resource base and an expansion of the domestic market.
While Sweden’s exports accounted for one-third of its GDP in 1990, its imports are now more diverse than before. Petroleum accounted for nearly one-fourth of total imports before the 1980s, but this has now decreased to less than five percent. The majority of imports are now engineering products such as motor vehicles, computers, and business machines. The country also imports many food products and chemical goods. The largest foreign supplier of Sweden’s imports is Germany.
While the United Kingdom slipped a bit behind Sweden in the rankings, the nation has made strides toward economic stability. Although the UK’s public deficit remains high (at 9% of GDP), it has improved its service sector and established itself as one of Europe’s leading start-up and tech hubs.
