Top 10 Largest Economies in the World
World largest economies in the occupied by the 10 developed countries. China recently surpassed Japan to become the second largest economy in the world. The Chinese economy has witnessed spectacular growth since economic reforms started in 1978. So the other top economies in the world and how the calculations are made? To determine the world’s largest economies there are several criteria. Every country wants to dominate world oil resources and become the world largest oil economies.
The volume of a country’s economy measured by GDP. There are two methods of calculating GDP:
i. Nominal GDP Method – This method compares countries using current exchange rates to analyze their influence in the global marketplace.
ii. Purchasing Power Parity or PPP method of GDP – PPP method of GDP judge the economy on the basis of their purchasing power, i.e. how many countries can be bought at a dollar compared to others.
PPP method of GDP and is often found more preferable to estimate the internal size of each market. The list below shows the 10 largest economies by their GDP estimates based on Purchasing Power Parity (PPP). Here are the top 10 largest economies in the world.
1. United States of America $ 13,860,000,000,000
2. China’s $ 7,043,000,000,000
3. Japan $ 4,305,000,000,000
4. India $ 2,965,000,000,000
5. Germany $ 2,833,000,000,000
6. United Kingdom $ 2,147,000,000,000
7. Russia $ 2,076,000,000,000
8. France $ 2,067,000,000,000
9. Brazil $ 1,838,000,000,000
10. Italy $ 1,800,000,000,000
China as a country with the largest population in the world and replace Japan in the second position in the list of world’s largest economies.