Top 10 Countries by GDP in 2022
Understanding the economic landscape of various countries will help you as you prepare for global expansion. Many businesses go global to access greater talent pools, reach new markets, and diversify their teams for better business continuity. With that being said, we’ve listed out the top 15 countries by GDP in 2022 as a guide. Click on any of the links to gain more in-depth reviews of these top countries. This is based on the most recent data available from the World Bank.
- United States: $20.89 trillion
- China: $14.72 trillion
- Japan: $5.06 trillion
- Germany: $3.85 trillion
- United Kingdom: $2.67 trillion
- India: $2.66 trillion
- France: $2.63 trillion
- Italy: $1.89 trillion
- Canada: $1.64 trillion
- South Korea: $1.63 trillion
1. United States
• GDP
– Nominal: $20.89 trillion
• GDP
per Capita: $63,413
• GDP
– Purchasing Power Parity (PPP): $20.89 trillion
A number of factors contribute to the success of
the United States. An entrepreneurial environment that encourages hard work and
long hours certainly helps. But decentralized government, advanced research
universities, and favourable regulatory environments also contribute. The United
States will likely always be in the top countries by GDP in the world.
2. China
• GDP
– Nominal: $14.72 trillion
• GDP
per Capita: $10,434
• GDP
– Purchasing Power Parity (PPP) : $17,204
The Chinese economy, one of the fastest growing
economies of the 21st century, now ranked as the second largest economy in the
world, is currently valued at a GDP of $14.86 trillion. With China’s Belt and
Road Initiative effectively merging its foreign and economic policy, promotion
of using the Chinese Renminbi for the use of settlements has increased. The
country is increasingly playing an influential role in the global economy. It
has been the largest contributor to global growth since the financial crisis of
2008.
3. Japan
• GDP
– Nominal: $5.06 trillion
• GDP
per Capita: $39,048
• GDP
– Purchasing Power Parity (PPP): $5.24 trillion
Japan’s four main islands – Honshu, Hokkaido,
Shikoku, and Kyushu – constitute nearly 98% of its land area. It has the
world’s 3rd largest economy by nominal GDP and the 4th largest economy by
purchasing power parity (PPP).
Ranked as one of most innovative countries in the
world, Japan is the world’s largest electronic goods producer and the 3rd
largest automobile manufacturer. The country generally has a surplus in annual
trade and international investment. The country’s workforce is highly qualified
and skilled, proving to be instrumental in organizational growth. All of these
factors contribute to Japan being one of the top countries by GDP.
4. Germany
• GDP
– Nominal: $3.85 trillion
• GDP
per Capita: $45,466
• GDP
– Purchasing Power Parity (PPP): $4.45 trillion
Germany has the 4th largest GDP in the world. The
total value of exports and imports is equal to 86.9% of GDP. Germany is a
European nation with the biggest drivers of its economy being its service
industries, including telecommunication, healthcare, and tourism.
The nation employs a social market economy that
emphasizes the value of open-market capitalism and also ensures a number of
social services guarantees. The country is ranked #1 in the world for
entrepreneurship due to its skilled labor force, highly developed
infrastructure, and technological expertise.
5. United Kingdom
• GDP
– Nominal: $2.76 trillion
• GDP
per Capita: $39,229
• GDP
– Purchasing Power Parity (PPP): $2.98 trillion
The United Kingdom (UK), also known as the United
Kingdom of Great Britain and Northern Ireland consists of England, Wales,
Scotland, and Northern Ireland. It is the 5th largest economy in the world and
the 2nd largest in Europe in terms of GDP. The UK ranks high in the annual
Global Competitiveness Reports and the World Bank’s Ease of Doing Business
Rankings.
6. India
• GDP
– Nominal: $2.66 trillion
• GDP
per Capita: $1,877
• GDP
– Purchasing Power Parity (PPP): $8.68 trillion
The Republic of India is a federal democracy that
consists of 28 states and 8 union territories. It is the largest democracy and
the 6th largest economy in the world. India has thriving manufacturing, technology,
and service sectors. Since 2014, the rate of foreign direct investment (FDI)
inflows to India has grown steadily as some key policy changes were
incorporated by the government to facilitate this growth. This makes India one
of the top countries by GDP in 2022.
Some strategic steps have been taken to stimulate
India’s business environment including reforms to remove bottlenecks in key
business areas, reducing minimum capital requirement, and simplifying the
process of obtaining necessary licenses.
7. France
• GDP
– Nominal: $2.63 trillion
• GDP
per Capita: $39,257
• GDP
– Purchasing Power Parity (PPP): $2.95 trillion
France is the 7th largest economy in the world. It
is the most visited destination in the world and consequently has a thriving
tourism industry. Also, foreign trade is an essential component of its economy.
The value of imports and exports comprise 63% of
the country’s GDP. Strong protection of property rights and an efficient
regulatory framework encourage investors. France ranks 32 in the World Bank’s
2019 Ease of Doing Business index. There are foreign players in various
sectors, and 31 out of Fortune 500 companies are from this prominent EU member.
8. Italy
• GDP
– Nominal: $1.88 trillion
• GDP
per Capita: $30,657
• GDP
– Purchasing Power Parity (PPP): $2.42 trillion
Italy’s economy is the 3rd largest in the Eurozone
and the 8th largest by GDP. In addition to its sizable economy, Italy is one of
the most influential countries in Europe; it is a key member of the Eurozone,
EU, the G7, the OECD, and the G20.
Italy’s diversified economic growth is propelled by
the consumer goods industry. GDP’s expenditure side includes 61% of household
consumption, 19% of government expenditure, and 17% of the gross fixed capital
formation. Exports of services and goods contribute to 30% of GDP while imports
account for 27%, adding 3% to GDP.
9. Canada
• GDP
– Nominal: $1.64 trillion
• GDP
per Capita: $42,080
• GDP
– Purchasing Power Parity (PPP): $1.81 trillion
Canada has a mainly service-based economy. The
threshold for foreign investment in Canada is CAD 5 million for direct
investments, and CAD 50 million for indirect investments. The country has also
been a key member of the World Trade Organization (WTO) since 1995.
It also has extensive trading ties with many
nations due to its bilateral and regional Free Trade Agreements (FTAs). A
well-educated workforce, multicultural/multilingual coexistence, a thriving
economy, and the government’s support for setting up business make Canada a
preferred investment destination.
10. South Korea
• GDP
– Nominal: $1.63 trillion
• GDP
per Capita: $30,644
• GDP
– Purchasing Power Parity (PPP): $2.29 trillion
South Korea was considered a developing country
until the 1960s. Due to far-reaching economic reforms (referred to as the
Miracle of the Hangang River), the country’s economy entered a period of rapid
growth (about an annual 10% growth for over 30 years). Today, South Korea‘s GDP
is about $2 trillion, and it’s one of the most developed and industrialized
countries in the world.
South Korea places great importance on education,
innovation and investment into research and development. The country has a
highly skilled workforce earning a high median household income. Services
provide the majority of the country’s GDP at 59%, with industry is at 38% and
agriculture at 2%.