Top 10 economies inequitable distribution of income present at the global level. The current prices US dollars which simply known as nominal GDP.
The top ten economies adds up to 65 percent of the world’s economy, and the top 15 economies add up to 75 percent.
Top 10 economies inequitable distribution of income present at the global level.
General rule, developed countries have a smaller gap between their nominal GDP.
The remaining 172 countries constitute only 25 percent of the world’s economy.
The rankings differ if the same list is prepared using the GDP based on purchasing-power-parity (PPP).
As a general rule, developed countries have a smaller gap between their nominal GDP and GDP.
Based on PPP, while the difference is greater in developing countries, which tend to have a higher GDP when valued on purchasing-power-parity basis.
NO 1. United States
The US economy is the largest economy in the world in terms of nominal GDP (measured at current prices in US dollars).
The $17.41 trillion US economy is approximately 22.44 percent of the gross world product.
The United States is an economic superpower that is highly advanced in terms of technology and infrastructure and has abundant natural resources.
However, the US economy loses its spot as the Number One economy by a slight margin to China when measured in terms of GDP based on PPP.
In these terms, China’s GDP is $17.63 trillion and the US GDP is $17.41 trillion.
However, the US is way ahead of China in terms of GDP per capita (PPP)– approximately $54,678 in the US versus $12,893 in China.
NO 2. China.
China has transformed itself from a centrally planned closed economy in the 1970’s to a manufacturing and exporting hub over the years.
The Chinese economy is propelled by an equal contribution from manufacturing.
And services (45 percent each, approximately) with a 10 percent contribution by the agricultural sector.
The Chinese economy overtook the US economy in terms of GDP based on PPP.
However, the difference between the economies in terms of nominal GDP remains large.
China is currently a $10.35 trillion economy and has been growing at around seven percent in the recent years.
Top 10 economies inequitable distribution of income present at the global level.
NO 3. Japan.
Japan’s economy ranks third in terms of nominal GDP while it slips to fourth spot when comparing the GDP by purchasing-power-parity.
The economy has been facing hard times since the 2008, when it was first showed recessionary symptoms.
Though the government’s stimulus packages have helped the economy recover a bit, the massive earthquake in 2011 gave the fragile economy another jolt.
Economic growth has hovered between 0.5–2 percent in recent times.
The nominal GDP of Japan is $4.77 trillion, its GDP (PPP) is $4.78 trillion, and its GDP (PPP) per capita is $37,683.
NO 4. Germany.
Germany is Europe’s largest and strongest economy.
On the world scale, it ranks as the fourth largest economy in terms of nominal GDP.
Germany’s economy is known for its exports of machinery, vehicles, household equipment, and chemicals.
Top 10 economies inequitable distribution of income present at the global level.
Germany has a skilled labor force, but the economy faces demographic challenges like most European nations.
The size of its nominal GDP is $3.82 trillion, while its GDP in terms of purchasing-power-parity is $3.62 trillion.
Germany’s GDP (PPP) per capita is $44,741, and the economy has moved at a moderate pace of 1-2 percent in recent years.
NO 5. France.
France, the most visited country in the world is the fifth largest economy in the world with a nominal GDP of $2.9 trillion.
Its GDP in terms of PPP is around $2.59 trillion.
France has a low poverty rate and high standard of living, which is reflected in its GDP (PPP) per capita of $40,445.
The country is among the top exporters and importers in the world.
France has experienced a slowdown over the past few years and the government is under immense pressure to rekindle the economy, as well as to combat the rising unemployment.
NO 6. United Kingdom.
The United Kingdom with a $ 2.85 trillion GDP is the world’s sixth largest and Europe’s third largest economy.
The economy of UK is primarily driven by services, as the sector contributes more than 75 percent of the GDP.
With agriculture contributing a minimal one percent, manufacturing is the second most important contributor to GDP.
Although agriculture is not a major contributor to GDP, the country produces 60 percent of its food needs domestically by employing less than two percent of its labor force.
The economy in terms of GDP purchasing-power-parity stands at $2.43 trillion with a GDP (PPP) per capita of $37,744.
NO 7. Brazil.
Top 10 economies inequitable distribution of income present at the global level.
Brazil with its $2.24 trillion economy, it is the seventh largest economy by nominal GDP.
The Brazilian economy is has developed services, manufacturing.
And agricultural sectors with each sector contributing around 68 percent, 26 percent, and six percent respectively.
Brazil is a part of BRIC and ahead of all other South American economies.
The Brazilian GDP measured in purchasing-power-parity is $3.07 trillion, while its GDP per capita (PPP) is $15,153.
However, the country has 21 percent of its population living below the poverty line.
NO 8. Italy
Italy’s $2.13 trillion economy is the world’s eighth largest in terms of nominal GDP.
Italy among the prominent economies of the eurozone, but it impacted by the crisis in the region.
The economy suffers from a huge public debt estimated to be about 133 percent of GDP, according to the CIA World Factbook.
The economy is also facing high unemployment and deteriorating economic growth.
The government is working on various measures to boost the economy that has contracted in recent years.
The GDP measured in purchasing-power-parity for the economy is estimated at $2.06 trillion, while its per capita GDP (PPP) is $34,455.
NO 9. Russia.
Russia’s domestic consumption amid a politically stable atmosphere has paved the way for economic growth in the country.
Top 10 economies inequitable distribution of income present at the global level.
The country has transformed itself since the fall of the Soviet Union in 1991 from a centrally planned economy to a more market-based open economy.
Russia’s $2.05 trillion economy is currently facing a crisis as a result of imposed sanctions and a steep fall in oil prices.
Russia’s economy in terms of purchasing-power-parity estimated at $3.56 trillion, while its GDP per capita is $24,764.
NO 10. India
India ranks third in GDP in terms of purchasing-power-parity ($7.28 trillion).
While its nominal GDP ($2.04 trillion) places it in the tenth spot.
The country’s high population drags its GDP (PPP) per capita down to $5,778.
India’s GDP is still dependent on agriculture (17 percent), compared to western countries.
However, the services sector has picked up in recent years and now accounts for 57 percent of the GDP, while industry contributes 26 percent.
The economy’s strength lies in a limited dependence on exports, high saving rates, favorable demographics, and a rising middle class.
The graph below presents the nominal GDP of the top ten economies over the five-year period, 2010-14.
