Sunday 3rd of March 2024

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United State is the highest in GDP Rate in the world

2019-11-10 7697


China has become the “World’s Factory”


Canada’s unemployment keeps going up…..!


GDP stands for "Gross Domestic Product" and represents the total monetary value of all final goods and services produced and sold on the market within a country during one year. The Rate is commonly used to measure economy of any country.

The first basic concept of GDP was invented at the end of the 18th century. The modern concept was developed by the American Economist, Simon Kuznets in 1934 and adopted as the main measure of a country's economy at the Bretton Woods conference in 1944.

As per the GDP rate Top Ten countries are listed below.

1. United States - Nominal GDP: $20.49 Trillion

United States has been the largest economy in the world from 1871. USA had reached this level due to its advanced technology, infrastructure and natural resources. The service sector contributes 80% to the county’s GDP. The U.S. economy is projected to grow to $24.81 Trillion by 2023

2. China - Nominal GDP: $13.41 Trillion

China experienced a rapid expansion over the past few decades. Their business model is to break barriers of a centrally-planned closed economy to evolve into a manufacturing and exporting hub of the world.

It is considered today as the “world’s factory” with its high contribution in the manufacturing aspects. It is the largest exporter in the world. In 1980 China was the seventh-largest economy, with a GDP of $305.35 Billion, while the size of the U.S. then was $2.86 Trillion. Hence you can imagine how rapidly it grew all this time. China implemented a market reform in 1978 as a result of which there has been a continued a 10% economic growth annually. By 2023, China’s expect the difference between USA and them to be $5.10 Trillion in the term of GDP.

3. Japan - Nominal GDP: $4.97 Trillion

Japan is the 3rd largest economy of the world. In 2008 Japan experienced a rock in its economy after which it remains a challenge. The global crisis triggered a recession which was followed by a weak domestic demand and huge public debt. When the economy was beginning to recover, it suffered a massive earthquake that hit the country socially and economically. Japan s expects to move up to $5.18 Trillion in 2019.

4. Germany - Nominal GDP $4 Trillion

Germany is the strongest economy in the European Union even though it is not the largest. Exports of capital good is the highest contributor to the GDP. In 2008 it suffered a huge lost in the global financial crisis. The economy grew by 1.9% and 2.5% in 2016 and 2017, respectively. Germany has launched “Industrie 4.0”, its strategic initiative to establish the country as a lead market and provider of advanced manufacturing solutions.

5. United Kingdom - Nominal GDP $2.83 Trillion

Between 1992 to 2008, the country experienced a growth in each quarter. The major contributor to GDP is the service sector which remains at 75%. Second is the manufacturing and the 3rd being agriculture. They produced 60% of their local food needs

6. France - Nominal GDP $2.78 Trillion

It is the 3rd largest economy in Europe. The country is famous for offering a high standard of living to its citizens. Recently the economy experienced a setback since the unemployment went up. Its unemployment rate was 10% in 2014 and the country managed to reduce it to 9.68 in 2017. As a result of the measurements taken by the government to arrest the situation due to the pressure of the citizens, they managed to bring it further down to 9 in 2018. France is the world's sixth-largest agricultural producer and the second-largest agricultural exporter, after the United States

Tourism is the major contributor to its economy being the most visited country in the world. The economy has grown by 1.8% in 2018 and expects a growth of 1.7% in 2019.

7. India - Nominal GDP $2.72 Trillion

India is the fastest-growing trillion-dollar economy in the world .The Indian economy was just $189.438 billion in 1980, ranking 13th on the list globally. Even though they started as an agrarian country after the independence, over the years, the manufacturing and services sector has emerged strongly. Today its service sector is the fastest in the world and contributes over 60% to the GDP. They expected a rapid growth in the manufacturing sector through their domestic strategy “Made in India” which brought them expected results. Their economy's strength lies in a limited exports, high saving rates and favorable demographics.

8. Italy - Nominal GDP: $2.07 Trillion

It has been facing deep political and economic chaos. Even though it was a destination for illegal employment seekers of Asian countries, through unsafe transportation, now its unemployment rate has gone up to two digits. With reforms their economy is recovering through exports and business investments.

9. Brazil - Nominal GDP $1.87 Trillion

It suffered multiple setbacks with the end of the commodity super cycle, in addition to internal problems of corruption and political uncertainty, which dampened the investment and business environment. IMF projects the economic growth to revive to 2.5% by 2019

10. Canada - Nominal GDP $1.71 Trillion

Canada displaced Russia to take the 10th spot in 2015 and has retained its position since then. Service sector is the major contributor to its GDP. 68% of its exports constituting of merchandise exports. Unemployment has been a major setback in the recent time. But still they expect a 2% growth in 2019.