However, EU forecasts expect economic growth to rebound in 2024 to 2.7%. The United Arab Emirates economy is the second largest in the Arab world. The GDP was estimated to have grown by 7.6% in 2022 – the highest expansion in 11 years – and growth prospects are expected to remain above 7% in 2023 as well.
- Indonesia’s economy is the largest economy in Southeast Asia and is based largely on commodity export industries.
- Microsoft and Apple, individually, have similar market caps to all combined listed companies in each of France, Saudi Arabia and the U.K, they added.
- While the country had a GDP of $255.1 billion in 2004, Poland had a GDP of $674.05 billion in 2021 given substantial economic growth.
- Given its GDP of $812.87 billion in 2021, Switzerland also has one of the larger economies in the world.
- In terms of this year, economists think Austria’s GDP could expand 4.7% before potentially entering into a mild recession next year.
The Swiss Franc is the 8th most traded currency in the world in the foreign exchange market. Switzerland is one of the world’s wealthiest countries and acts as a ‘safe haven’ for financial investors during times of instability. Argentina is the third largest economy in South America behind Brazil and Mexico but is going through one of the worst economic crises in its history. Annual inflation rate soared past 100% in April 2023 – the third highest in the world after Venezuela and Zimbabwe.
Saudi Arabia is an energy superpower that had a GDP of $833.54 billion for 2021. Considering oil and gas prices have increased substantially this year given the Russia Ukraine war, the country’s GDP will likely be higher for 2022. In terms of investing returns, countries that are more stable and advanced in technology, and that grow faster than the other countries generate higher returns for their stock market investors. For instance, the US economy has clearly been the leading the world in technological advancement since the early 80s and its stock market returned slightly more than 10% annually over the last 40 years. That’s why Warren Buffett’s “never bet against America” motto has been working.
Select a country from the drop-down menu below to compare its actual growth rate and estimated potential growth rate over time. The bottom chart shows the difference between actual and potential growth, or its growth gap. Positive values on this chart indicate that a country is growing above potential; negative values indicate it is growing below potential. Countries with positive growth rates are shaded in green; countries with negative growth rates, orange.
China was in 13th place in 2000, but has been sitting in second place since 2010. Further down the list, Indonesia, vaulted forward from the 27th largest economy in 2000 to the 16th as of 2022. In 2022, Saudi Arabia climbed from 18th to 17th, and Argentina jumped to 22nd from 28th last year. However, this level of concentration has led some analysts to voice concerns over related risks in the U.S. and global stock market. The so-called “Magnificent 7” now wields greater financial might than almost every other major country in the world, according to new Deutsche Bank research.
Mexico has a nominal GDP of $1.29 trillion in 2021 and a GDP, PPP of $2.61 trillion in 2021. Given its population, resources, and proximity to the United States, the country also has substantial potential to expand its economy considerably in the future. Indonesia is a country with substantial potential given its population, resources, and geography. In 2021, the country had a nominal GDP of $1.19 trillion and a GDP, PPP of $3.57 trillion. Given its potential, Indonesia’s economy could expand considerably in the next coming decades. With a GDP per capita of $93,457.44 in 2021, Switzerland ranks as one of the wealthiest nations by income.
Resources and environment
Belgium hosts the headquarters of NATO and the European Union, making it one of the most politically influential countries in the world. According to OECD’s economic outlook for Belgium, the country is forecast to have a GDP growth of 0.9% in 2023 which will rise to 1.4% in 2024. Denmark received a ‘stable’ outlook from Fitch and was forecast to narrowly avoid technical recession in 2023. The OECD has projected a growth rate of 0.1% this year and for inflation to fall from 8% to under 3% by 2024. It has also been regarded as one of the best countries to start a business, owing to its relatively low corporate tax rate of 22%. In addition, Copenhagen is considered the logistics hub in the Nordic region, providing access to 100 million Scandinavian customers within 24 hours.
It is unclear, for example, how many of the world’s 7.8 billion people (as of March 2020[update])[3][4] have most of their economic activity reflected in these valuations. Germany is the biggest economy in the European Union with an annual nominal GDP of 4.2 nord fx review trillion US dollars placing it in the fourth position globally. The backbone of Germany’s economy is based on the export of machinery, vehicles, chemicals and household items. The highly skilled labor force makes a huge contribution to the economic growth.
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Its primary export partners are the U.K., Germany, Sweden, Netherlands, and China. The country is a large exporter of natural gas, crude petroleum, salmon, and aluminum. Over the past three decades, Mexico has emerged as a manufacturing economy under a series of free trade agreements with the United States, Canada, and 50 other countries. Many major U.S. manufacturers have integrated supply chains with counterparts or operations in Mexico. Mexico supports a variety of exports, including consumer electronics, vehicles, and auto parts, as well as petroleum and agricultural products. South Korea’s economy is a 20th-century success story that is today firmly established as an advanced, industrial economy.
In the first half of 2009, three-fourths of tracker countries saw GDP shrink. By 2016, growth had turned positive in nearly every country, but the global economy began to slow again in 2019. And in early 2020, the COVID-19 pandemic caused a collapse in GDP at a pace comparable https://forexhero.info/ to that during the Great Depression. Global growth resumed in 2021, at a robust 6 percent pace, before falling back to 3.5 percent in 2022. The U.S., China, Japan, Germany, and India are some of the top economies in the world, based on gross domestic product (GDP).
The Saudi government has also begun to at least partially privatize Aramco, listing the company on the Saudi Stock Exchange through an initial public offering (IPO) in December 2019. Tourism is an important industry, and France receives the most visitors of any country each year. Throughout this list and article, the term GDP refers to nominal GDP in current U.S. dollars unless otherwise specified.
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It’s not just statisticians that care about the relative size of national economies. Turkey had a GDP of $815.27 billion in 2021 and a GDP, PPP of $2.59 trillion in the same year. Given the large difference between the two, there is potential for Turkey’s economy to grow considerably in the future. GDP, PPP factors in the price difference of goods and services in different countries when calculating the total product. GDP is the sum of the monetary value of the finished goods and services produced in a country in a year.
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Potential growth data is calculated based on IMF estimates of each country’s potential GDP. Potential GDP is defined as the maximum output a country can produce, in a given period of time, without causing inflation to rise. Unlike actual GDP, potential GDP cannot be observed directly from the real world. Instead, its value is estimated from trends in a country’s labor supply, capital stock, and productivity level. Together, the growth data from each country highlights significant global trends. It shows how the 2008 financial crisis, which began in the United States, triggered major declines in growth across the world.
Earlier this year, KPMG had also forecasted the Australian economy to slow down in 2023, but keep away from recession. Despite challenges, it is one of the world’s largest economies, and its currency, the Australian Dollar, is the premiere currency of the Asia-Pacific region. Indonesia with a GPD of $1.31 trillion in 2022 is the biggest economy in southeast Asia and one of the emerging market economies. Indonesia is expected to be the fourth largest economy in the world in 2050 as per projections by PwC. Scheduled power cuts that started in 2007 have constrained South Africa’s economic growth. This has disrupted economic activity by increasing operating costs for businesses.
Many of the 493 other S&P 500 stocks have struggled over the past year, but he suggested that some could start to participate in the rally if the two aforementioned factors continue to fuel the economy. “Although wages have risen, they haven’t kept pace with those price rises, leading to a decline in employment costs as a proportion of the price of goods and services,” Casali said. Reid noted that while big companies eventually tended to drop out of the top five as investment trends and profit outlooks evolved, 20 of the 36 that have populated that upper bracket are still in the top 50 today. Deutsche analyzed the trajectories of all 36 companies that have been in the top five most valuable in the S&P 500 since the mid-1960s. South Koreans are the least likely to see China as the preeminent economy, choosing the U.S. by 75 percentage points.