When we look at the world’s most thriving and developed countries, one of the aspects we consider when rating the level of development is Gross Domestic Product (GDP), which relates to the value of economic activity that is perceived in a country.
GDP can also indicate the living standards of countries and how they compare to other regions across the globe. The most developed countries in the world are characterized by a high GDP as well as impactful industrialisation and exceptional infrastructure.
Here are five countries with the highest GDP that showcase these characteristics.
List of Countries with Highest GDP
1. United States of America
This country is the world’s largest economy by nominal GDP, which means GDP using current prices, without altering for inflation. There are five industries that drive the American economy. These trades include health care, construction, technology, retail and non-durable manufacturing (such as gas and electricity). Its GDP at the end of the fourth quarter of 2019 was estimated at $21.734 trillion.
The United States of America is the country with the highest GDP that accounts for 31% of the world’s wealth. Although it is known for having income and wealth inequality, it still has an impressive socioeconomic performance.
Added to this, the country has an entrepreneurial culture that is supported by its financial system. Its top-notch research universities are big drivers for attracting entrepreneurial-minded students. American culture also inspired a hard-working ethic amongst its people. Due to its rapidly growing population, of which a part can be attributed to immigration, the country has an energetic, more youthful workforce.
Another factor that attributes to the United States of America being such a developed country is that it is energy independent with private ownership of land and minerals.
2. China
In 2019, China had a GDP of $14.140 trillion. This country has the second highest GDP in the world and had experienced massive growth in the last couple of decades. The country is sometimes referred to as the world’s factory, due to its manufacturing and export activities. As one of the largest exporter of goods, it is also the second-largest importer of goods.
Furthermore, the country is the globe’s largest producer as well as consumer of agricultural goods. China is the world’s biggest rice manufacturer and also exports other essential products such as fruit and vegetables.
The country has no shortage when it comes to mineral resources. Of these, coal is predominant and makes up an integral part of China’s energy consumption as well as its economy, as China is not only the biggest producer of coal in the world but also the largest consumer of coal.
3. Japan
Considered to be a country of social and economic stability, Japan has the third-highest GDP in the world and had a GDP of $5.154 trillion. Its Tokyo Stock exchange is the third-largest stock exchange in the world and it is the second-largest stock exchange in Asia as well.
Several aspects contribute to Japan being one of the most developed countries in the world. These include being one of the world’s largest car manufacturing countries, with well-known brands such as Toyota, Nissan, Suzuki, Honda and Mazda. The country also has a massive electronics goods industry.
Adding to its financial prosperity, Japan has a very low crime rate and a very high literacy rate among its youth. It is a leading robotics producer and has the third-longest life expectancy in the world.
4. Germany
With its flourishing economy and high-quality standard of living, Germany is one of the most developed and most industrialised countries in the world. Its GDP in 2019 was marked at $3,846,591 million, making it the fourth-highest GDP in the world. Additionally, this country is regarded as Europe’s strongest economy, in part due to its excellent labour force.
Germany is known for producing world-renowned products. Some of its leading companies that are known across the globe include car manufacturers Volkswagen and BMW. As the country has Eurozone Membership – meaning it is part of the European Union (EU) and uses the Euro as its currency – it can also trade with its fellow EU members at a good price. This, in turn, has benefited German citizens, who are able to spend more money locally as well as drive the German economy.
5. United Kingdom
The United Kingdom, which comprises England, Scotland, Wales and Northern Ireland, had a GDP of $2.744 trillion in 2019. It is the world’s sixth-largest economy as well as one of the most globalised when compared to other countries. The country’s pound sterling – or simply pound – currency is the fourth largest in the world and rated in the top ten most-valued currencies currently available across the globe. The United Kingdom was also the world’s first industrialised country and has a service-based economy.
With its proud trading history, the United Kingdom is considered to be the tenth largest exporter in the world. Its export commodities include mechanical machinery, cars, pharmaceuticals, electrical machinery, crude oil, scientific/photographic commodities, aircraft and crude oil, to name a few. Some alcohol products, such as Scotch whiskey, as well as artisanal chocolates, sea salt and Scottish salmon exports have proven fruitful for this nation.
In conclusion
It is important to note that even though a country’s GDP is growing, its level of development needs to be considered with other factors in mind as well, such as the well-being of citizens, healthcare services available and education opportunities also need to be considered.
The above-mentioned countries are good examples of nations that not only have prosperous economies but also demonstrate progress in service and manufacturing areas. Their impact across the globe is undeniable, and will likely continue to grow for decades to come.
I hope that this article on countries with highest GDP was helpful. If you are interested, visit the Country Rankings Page!
