20 countries that rule the world
07 September 2016
Power economies
Money talks on this planet, and the countries that boast the highest GDPs tend to wield the most clout, although some have had a rough time of late. Counting down from 20 to one, we reveal the world's biggest economies based on the latest IMF data.
20: Saudi Arabia – 2015 GDP: $653.219 billion (£488.878bn)
This oil-rich Gulf state, which is heavily dependent on the black stuff, ran up a record $98 billion (£73.3bn) deficit in 2015, pumping money into the economy to mitigate the falling oil price. The Saudi government has embarked upon a series of major infrastructure projects to stimulate the economy and growth has remained fairly steady at 3.4%.
19: Switzerland – 2015 GDP: $664.603 billion (£497.098bn)
Boasting the highest GDP per capita in the top 20, the prosperous and ever-resilient Swiss economy avoided recession last year, despite a sharp rise in the value of the Swiss Franc and encroaching deflation, which bottomed out at -1. 3% in July. Consumer and business confidence remained buoyant though so instead of slipping into recession, as was widely feared, the Swiss economy actually grew by 0.9%.
18: Turkey – 2015 GDP: $733.642 billion (£549.067bn)
With domestic consumer demand strong, the Turkish economy enjoyed a 3.8% growth rate in 2015, up from 2.9% the previous year, despite political instability and a worsening security situation in the country. Turkey has also had to deal with a drop in value of the Lira – it fell to record lows against the dollar in 2015 – as well as high inflation.
17: The Netherlands – 2015 GDP: $738.419 billion (£552.643bn)
The Dutch economy grew by 1.9% in 2014, up a percentage point from 2014 but below expectations. Unemployment in the Netherlands rose in 2015 and inflation increased from 1.1% to 2% . But it wasn't all bad news. The Netherlands has risen from 8th to 5th place in the Global Competitiveness Report 2015, and the budget deficit is just 2.2%, lower than the EU average of 3%.
16: Indonesia – 2015 GDP: $858.953 billion (£642.335bn)
The Indonesian economy wasn't in the best of shape during 2015. Growth was relatively slow at 4.8% down from 5% in 2014, and trade and commodity prices remained stagnant. The extreme forest fires and haze that plague the country during the dry season were particular severe last year and, according to World Bank figures, cost Indonesia a hefty 1.9% of GDP. Luckily, experts expect the economy to bounce back in 2016.
15: Mexico – 2015 GDP: $1,144.334 billion (£856.435bn)
Growth remained modest yet steady in Mexico during 2015, up from the previous year to hit 2.5%. The depreciation of the peso boosted exports and consumer confidence was unexpectedly high, however the falling oil price resulted in a series of public spending cuts as the government lost much-needed revenue.
14: Spain – 2015 GDP: $1,199.715 billion (£897.883bn)
Last year, the Spanish economy delivered its highest growth rate since the global financial crisis of 2008. GDP rose from 1.4% in 2014 to 3.2% in 2015. While the political situation in the country has been rather unstable, improving credit flows, booming tourism, increasing consumer confidence and a fall in unemployment have helped fuel the recovery.
13: Australia – 2015 GDP: $1,223.887 billion (£915.816bn)
Economic growth in Australia was down slightly in 2015 compared to the previous year but remained steady at 2.5%. While consumer spending was relatively flat in 2015, Australia experienced its fastest gain in exports since 2000 and benefited from the falling price of oil, softening the impact of China's economic slowdown on the Aussie economy.
12: Russia – 2015 GDP: $1,324.734 billion (£991.449bn)
Beset with problems, 2015 was not a good year for the Russian economy. A perfect storm of falling oil prices – Russia is majorly reliant on the black stuff – economic sanctions imposed by the international community and an aggressive and very pricey foreign policy has shaved billions of roubles off the Russian economy, and reduced growth from 0.7% in 2014 to -3.7% in 2015. it's still a global powerhouse though.
11: South Korea – 2015 GDP: $1,376.868 billion (£1,030.524bn)
GDP growth slowed in South Korea from 3.3% in 2014 to 2.6% last year for a number of reasons. Flagging demand from China – a massive market for South Korean goods – affected exports, interest rates were cut to a record low of 1.5%, and crises including the Middle East Respiratory Syndrome (Mers) outbreak sapped consumer confidence and dented tourism receipts.
10: Canada – 2015 GDP: $1,552.386 billion (£1,160.693bn)
Canada is the world's fifth largest oil producer and fourth largest oil exporter. Needless to say, its economy has taken a bit of a battering as a result of the plummeting price of the commodity, the knock-on effect of which has been increased unemployment and a depreciation in value of the Canadian dollar. In fact, overall, growth dropped from 2.5% in 2014 to 1.2% in 2015.
9: Brazil – 2015 GDP: $1,772.589 billion (£1,325.335bn)
The Brazilian economy tanked big-time in 2015, with growth falling dramatically from 0.1% the previous year to -3.8%, the worst performance of any country in 2015. The falling price of oil is the main culprit, but a ballooning budget deficit, political instability and expensive projects such as the Rio Olympics haven't done the economy any favors, either. Nonetheless, it's still in the top 10.
8: Italy – 2015 GDP: $1,815.757 billion (£1,357.611bn)
Italy's economy has been in turmoil since the global financial crisis of 2008, growing by just 0.8% in 2015 following years of negative growth. Unfortunately, the outlook is far from rosy. The IMF has warned that the country is unlikely to fully recover from the 2008 recession until the mid-2020s. For now, though, it maintains a position in the top 10.
7: India – 2015 GDP: $2,090.706 billion (£1,563.186bn)
The emerging superpower ranks seventh in the world in terms of GDP, but when it comes to spending power parity, India is third behind China and the USA. Last year was an auspicious one for the Indian economy. Buoyed on by consumer spending and public investment, GDP rose by 7.3%, surpassing China's growth rate for the first time this millennium.
6: France – 2015 GDP: $2,421.560 billion (£1,810.560bn)
Like its Eurozone counterpart Spain, France emerged from several years of economic stagnation in 2015, with the economy growing by just 1.1%. Retail sales in the country were among the strongest in Europe during 2015 and industrial output rose by 2.2%, driving the recovery.
5: United Kingdom – 2015 GDP: $2,849.345 billion (£2,130.407bn)
The UK economy grew by 2.2% in 2015, which although far from spectacular reflects a steady trend for slow yet reliable growth over recent years. The service industries have experienced the most impressive growth, while construction and manufacturing have been flagging. The wide-ranging effects of leaving the EU however remain to be seen.
4: Germany – 2015 GDP: $3,357.614 billion (£2,510.291bn)
Europe's economic powerhouse demonstrated steady growth in 2015 of 1.5%. Several factors have been keeping the German economy afloat. The European Central Bank pumped money into the economy during 2015, and with wages high and unemployment at a record low, consumer spending has been booming.
3: Japan – 2015 GDP: $4,123.258 billion (£3,082.890bn)
Despite Prime Minister Shinzo Abe's Abenomics stimulus plan, the Japanese economy grew by just 0.5% in 2015. According to the experts, a warm winter impacted energy expenditure and slow wage growth reduced consumer spending, limiting the positive impact of Abe's quantitative easing, fiscal expansion and economic restructuring policies.
2: China – 2015 GDP: $10,982.829 billion (£8,211.215bn)
China's growth rate lost momentum in 2015, down from 7.3% the previous year to 6.9%, around half the growth rate of 14.2% the country enjoyed in 2007 when it reached the symbolic $10 trillion GDP threshold. While the colossal Chinese economy appears to be slowing down, experts predict China could overtake the USA in terms of GDP within a decade.
1: USA – 2015 GDP: $17,348.075 billion (£12,970.863bn)
The world's most powerful economy experienced lackluster yet steady growth of 2.4% in 2015, matching the 2014 growth figure. A mixed bag, the economy was slowed by a stronger dollar impacting on foreign trade, fewer private investments and poor sales of big-money goods such as cars, but boosted by general consumer spending.
Comments
Be the first to comment
Do you want to comment on this article? You need to be signed in for this feature