Rob Smith
The United States has the largest economy in the world at $20.4 trillion, according to data from the International Monetary Fund (IMF), which shows the US economy increased from around $19.4 trillion last year. China follows, with $14 trillion, which is an increase of more than $2 trillion in comparison to 2017. Japan is in third place with an economy of $5.1 trillion, up from $4.87 trillion a year previously.
Image: IMF
The US and China have the world’s largest economies Image: IMF
European countries round off the top 5
Three European countries take up the next places on the list: Germany is fourth, with a $4.2 trillion economy, the United Kingdom is fifth with $2.94 trillion and France is sixth with $2.93 trillion.
Close behind the UK and France, in seventh, India’s economy is $2.85 trillion, and Italy is in eighth with an economy of $2.18 trillion. Ninth on the list is Brazil, with an economy of more than $2.14 trillion, while Canada is 10th with a $1.8 trillion economy.
The sheer scale of the United States’ economy puts others into perspective. It is larger than the combined economies of numbers four to 10 on the list above. Overall, the global economy is worth an estimated $79.98 trillion, meaning the US accounts for more than one-quarter of the world total.
China and India predicted to surge
However, its dominance looks to be waning. According to data from the World Bank (illustrated by visual capitalist), the global economy will expand by $6.5 trillion between 2017 and 2019. America’s GDP is expected to account for 17.9% of this growth. China’s, however, is predicted to account for almost double this, at 35.2%.
China is experiencing a GDP boom. Image: Visual Capitalist
China’s digital economy is also experiencing a boom period. It has grown from less than 1% of the global e-commerce market about 10 years ago to 42% today. In comparison, the United States’ share of the market is 24%, down from 35% in 2005.
China’s economy will also eclipse the US economy by 2050, according to a report by professional services firm PwC, which also predicts India will overtake the US.
China, the report says, will have an economy of nearly $58.5 trillion, while India’s will be around $44.1 trillion and America’s will total $34.1 trillion.
Interestingly, Japan ($6.7trn), Germany ($6.1trn), the United Kingdom ($5.3trn) and France ($4.7trn) are expected to fall to eighth, ninth, 10th and 12th in the list, respectively.
These countries will be replaced by Indonesia ($10.5trn), Brazil ($7.5trn), Russia ($7.1trn), and Mexico ($6.8trn), which climb to fourth, fifth, sixth, and seventh, respectively.
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