It is surprising to note that when you query Google for the “top 10 richest countries in the world 2018”, you will be presented with the list which has a small country like Qatar on top, Luxembourg as second, Singapore as third, and so on. What these bloggers who make their website rank to the top by using dubious methods, do not know is that these figures are for Purchasing Power Parity, which means how an average citizen of that country would fare in comparison to others. GDP based on PPP is useful for several agencies including marketers. If a country has a high PPP, then they can launch expensive products there.
But it also means that a very small country with a very small population, but a wealthy population will rank much higher than a big country like the USA, China or Canada. That is why if we want to ascertain the wealth of a country and not the standard of living of its average citizen; then we should focus on the Gross or Nominal GDP, which gives a complete and larger picture.
So here is a list of top ten wealthiest countries in terms of nominal GDP in 2018. These data have been taken from the International Monetary Fund (IMF), and World Economic Forum (WEF) websites.
Nominal GDP – $1.8 Trillion
Canada is the second-largest country in the world. It is thinly populated as the majority of its land is covered by forest and tundra. It has a population of over 35 million and more than 80% of its population reside in urban areas. Canada has a federal parliamentary democracy with a constitutional monarchy, and Queen Elizabeth II is the head of state. Canada is ethnically diverse and multicultural.
Canada has a highly developed economy which is the tenth-largest in the world. Canada ranks very high in the Human Development Index, government transparency, civil liberties, quality of life, economic freedom, and education. Canada is a member of the Commonwealth of Nations, as well the UN, NATO, G7, G10, G20, NAFTA, APECF and OECD..
Canada’s economy relies heavily on manufacturing, mining, and service sectors. Service industry employs more than 75% of the population. Canada is a net exporter of energy as it has large deposits of natural gas, and oil. Canada is also one of the world’s largest suppliers of agricultural products. The Canadian Prairies produce wheat and other grains. It also exports minerals like nickel, aluminum, steel, iron ore, coking coal, lead, and zinc. Canada’s manufacturing sector includes automobile and aeronautics.
Nominal GDP – $2.14 Trillion
Brazil is the largest country of the South and Latin America and occupies almost half of the South American continent. It is the fifth largest country in the world. With a population of more than 208 million, it is the sixth most populous country in the world. The Amazon River basin which includes the Amazon Rainforests is home to diverse wildlife and a variety of ecological systems.
World Bank classifies Brazil as an upper-middle income economy. It is a newly industrialized country. Brazil is one of the world’s major breadbaskets. It is the major producer and exporters of several food grains and edibles like oranges, coffee, sugar cane, cassava, soybeans, and papayas. It has been the largest producer of coffee for the last 150 years. Brazil is an emerging global power. It is a founding member of the UN, G20, BRICS, and many more international bodies.
Brazil has a flourishing economy in the sectors of agricultural, mining, manufacturing and services. It has a workforce of more than a 107 million, which takes it to the sixth spot in the world. Brazil is in the group of four rapidly emerging economies called BRIC countries; the acronym stands for Brazil, Russia, India, and China. Its manufacturing industry makes automobiles, steel, computers, aircraft and consumer durables, and makes for more than 30% of its GDP. Corruption is a major issue in Brazil, and it ranks very low in the Corruption Perception Index.
Nominal GDP – $2.18 Trillion.
Italy, with a population of about 61 million, is the fourth most populous EU member state. Since ancient times, Italy has been the seat of a cultural, political and religious center of Western civilization. The legacy of the Romans can be observed in the global influence on law, polity, religion, and script. Italy has the world’s eighth largest nominal GDP in the world and third largest in the Eurozone. Italy is a highly developed nation and ranks very high in the human development index. Italy is a founding member of the EU, and a member of several world bodies like the UN, NATO, OECD, WTO, G7, G20, and many more.
Italy belongs to the European single market having more than 500 million consumers. Many domestic commercial policies are decided by agreements among EU members and EU legislation. Italy introduced the Euro in 2002 and is a member of the Eurozone having 330 million citizens. Italy has an advanced capitalist mixed economy and is one of the world’s most industrialized nations. It is well-known for its high-quality automobile, machinery, design, and fashion industry. It is the top wine producer in the world.
Italy’s manufacturing sector focuses on the export of niche market and luxury products which are of the highest quality. Thus it is able to face competition from China and other countries that leverage on their abundant labor and cheap labor costs. The automotive industry constitutes an important segment of the Italian manufacturing sector. It comprises the brand like Alfa Romeo, Fiat Chrysler Automobiles, Ferrari, Lancia, Lamborghini, Maserati and more.
Nominal GDP – $2.85 Trillion
India is the seventh-largest country and the second-most populous country with a population of more than 1.2 billion people. This makes it the most populous democracy in the world. India’s Andaman and Nicobar Islands share a maritime border with Thailand and Indonesia. Since mid-19th century India was officially under the British crown. Under Mahatma Gandhi’s nationwide non-violent resistance, India gained independence on 15th August 1947. Politically, India is a federal republic with a parliamentary system. India has the second largest standing army in the world and ranks fifth in military expenditure.
The Indian economy was the world’s sixth largest by nominal GDP in 2017. According to IMF, the nominal GDP was the US $2.611 trillion. It ranks 140th in the world in nominal GDP per capita. Since the major economic reforms in 1991, India became one of the fastest-growing major economies. It is now a newly industrialized country. Yet India is a developing country in terms of per capita income and faces the challenges of poverty, corruption, malnutrition, education and lack of public healthcare. Since 1991, India has slowly moved towards a free-market system. In 1995, India became a member WTO.
The Indian labor human resources at 515 million is the world’s second-largest. Sectorwise, the service sector contributes about 56% to the GDP, the manufacturing sector is about 26%, and the agricultural sector makes up about 18% of the GDP. Major agricultural products are rice, wheat, oilseed, cotton, jute, tea, sugarcane, and potatoes; whereas major industries include textiles, telecommunications, software, chemicals, pharmaceuticals, steel, cement, mining, petroleum, cars and two-wheelers, machinery etc.
Nominal GDP – $2.93 Trillion
France is a unitary semi-presidential republic having Paris as its capital. The overseas territories of France include French Guiana in South America and several islands in the Atlantic, Pacific and Indian oceans. France has been a global center of art, science, and philosophy and has a large number of UNESCO World Heritage Sites. France is a highly developed country which is the world’s seventh-largest economy in terms of nominal GDP. The citizens enjoy a good education, health care, life expectancy, and human development.
France has a mixed economy which translates into extensive private enterprise while the government investing in key areas such as infrastructure, transportation, railways, electricity, telecommunication, nuclear power, etc. France is one of the five permanent members of the United Nations Security Council. It is a member of the European Union, Group of 7, NATO, OECD, WTO, etc.
France along with 11 other EU members launched the Euro in 2002. France is a member of the Eurozone which has about 330 million consumers and is part of the European Single Market having more than 500 million consumers. The domestic commercial policies are decided by agreements among the EU members.
#5. The United Kingdom
Nominal GDP – $2.94 Trillion
The United Kingdom includes Great Britain, Ireland, and many smaller islands. It consists of four countries, England, Northern Ireland, Scotland, and Wales; having their respective capitals at London, Belfast, Edinburgh, and Cardiff. It is the 78th-largest country and the 21st most populous nation with a population exceeding 66.0 million. U.K. is a parliamentary democracy having a constitutional monarchy. The monarch is Queen Elizabeth II, who is the longest-serving head of state in the world after having been on the throne since 1952.
U.K. is a highly developed country and the world’s fifth largest economy by nominal GDP and the second-largest in Europe after Germany. It has a very high Human Development Index. It was the first industrialized country and the world’s foremost power during the 19th and early 20th century.
It stands sixth in military expenditure in the world. UK is a member of world bodies like the United Nations, European Union, Commonwealth of Nations, Council of Europe, G7, G20, NATO, OECD, Interpol, and WTO. London is one of the world’s largest financial centers.
The UK has a partially regulated market economy. The service sector comprises about 80% of the economy. Among the industries, the automotive and aerospace industries employ the maximum people and generate employment, as well as turnover and revenues. Agriculture is highly mechanized and efficient, and the farmers are subsidized by the EU’s Common Agricultural Policy. It is also rich in a number of natural resources like coal, petroleum, natural gas, limestone, iron ore, etc.
Nominal GDP – $4.2 Trillion
Germany is fourth, with a $4.2 trillion economy, Germany is the most populous member state of the European Union. It is a powerful country with a strong economy. It is the fourth largest economy in the world with a nominal GDP of $4.7 Trillion. It is a highly developed country which provides the highest standard of living for its citizens. Germany is a member of several world bodies like the United Nations, NATO, G7, G20, and OECD.
Germany is a technology and industrial leader and the world’s third-largest exporter as well as importer of goods. The economy of Germany is a social market economy. Germany has a large base of highly skilled human resources, very high labor productivity and extensive capital stock which had brought it to the top of the affluent developed nations.
Germany is a part of the European Union where domestic commercial policies are determined by agreement among members. The European single market has more than 500 million consumers. The automotive industry of Germany is the fourth largest by volume. It also exports technological goods like machinery, electronic products, electrical equipment, pharmaceuticals, chemical goods and a lot more.
Nominal GDP – $5.1 Trillion
Japan has an economy of $5.1 trillion, which was $4.87 trillion in 2017. Japan or The Land of the Rising Sun is an archipelago of 6,852 islands. The four largest islands which make 97 of Japan’s land area are Honshu, Hokkaido, Kyushu, and Shikoku. The World War II ended after Japan surrendered following the nuclear bombing dropped on Hiroshima and Nagasaki.
Japan is a member of all the world bodies like the UN, ASEAN, OECD, G7, G8, and G20. Japan is also the world’s fourth-largest exporter and fourth-largest importer. Japan has a highly skilled workforce, and its citizens are among the most highly educated in the world.
Although Japan is a peace-loving country, its military spending is the eighth-largest in the world. It is a highly developed nation with a high standard of living and highest life expectancy. The Japanese system of management and its quality is legendary and explains Japan’s success with its export of products. Japan is an industrial country and is a leader in the production of Consumer electronics, motor vehicles, white goods, etc. Japan also comes second in the world for fishing in the sea.
Nominal GDP – $14 Trillion
China follows America at Number Two spot with an increase of more than $2 trillion since 2017. China is the world’s most populous country and one of the world’s earliest civilizations. China’s economy is one of the world’s fastest-growing with annual growth rates of 6 % or more. This started after the introduction of economic reforms in 1978. China is the world’s second-largest economy by nominal GDP. It is the world’s largest exporter and second-largest importer of goods. China also has the world’s largest standing army.
In 1949, after the Chinese Civil War, the Communist Party of China established the People’s Republic of China. Earlier China had a Soviet-style centrally planned economy, but after Mao’s death in 1976, China began to reform the economy towards a more market-oriented mixed economy. Today China’s economy is based on private property ownership and its philosophy of state capitalism.
China is a global manufacturing leader due to its high productivity, low labor costs, and good infrastructure. The Chinese economy is highly energy-intensive, and it is the world’s largest energy consumer. It relies on coal-fed electrical energy, which has wreaked environmental havoc. Several economists believe that China’s claims on the economy are not reliable and do not reflect the true state of the economy. China is also a member of the WTO and world’s largest trading power.
#1. The United States America
Nominal GDP – $20.4 Trillion
The United States has the largest economy in the world, and the US economy increased from around $19.4 trillion last year. Also called the United States (U.S.) or America; the United States of America (USA), is a federal republic made of 50 states. With an area of 3.8 million square miles the US I the world’s third largest country and the third most populous country with a population of 325 million. Washington D.C. is the capital, and New York City is the largest city by population.
The European colonization of America began in the 16th century. Later American Revolution began in 1775, and in 1783 The United States became independent of European powers. The United States is a founder member of the important world bodies like the United Nations, World Bank, International Monetary Fund, etc.
The United States is the world’s largest economy by nominal GDP and is equal to about a quarter of the world GDP, though its population is just about 5% of the world. It is also the world’s largest importer. The U.S. is the most powerful military power in the world.
The U. S. has a mixed capitalist economy. It has abundant natural resources, high industrialization, and high productivity. The U.S. GDP is 24% of the gross world product at market exchange rates and over 19% of the gross world product at purchasing power parity. The US is the largest producer of oil in the world and also the second-largest importer.
This list has been prepared from authentic sources. The GDP figures given are accurate to the extent possible. However, there can be minor variations depending on the source you are looking at. Another astounding point is the United States’ economy as compared to other nations. The global economy is estimated to be about $80 Trillion. The United States, with its GDP of more than $20 Trillion has an economy which is one-fourth of the global economy. This is what makes USA such a BIG super-power.