In this article, we look at the 10 largest economies in the world in 2023. To see our detailed analysis of the global economy, you can head to the 50 Largest Economies in the World in 2023.
10. Italy
GDP: $2 trillion
Italy is tenth among the largest economies in the world in 2023, with a GDP of $2 trillion. The economy grew by 3.9% that year due to an increase in domestic demand for goods and services. Revival of tourism post-pandemic has also provided a boost to the economy.
9. Canada
GDP: $2.1 trillion
Canada is a highly developed economy that had a GDP of $2.1 trillion in 2022. The country’s main exports are gold, lumber, and crude oil. 75% of its trade is with its southern neighbor, the United States. Canada’s currency, the Canadian Dollar, is the seventh most traded currency in the world with a daily forex trade volume of over $460 billion.
8. Russia
GDP: $2.2 trillion
Russia has enormous resources of oil and natural gas, because of which, despite difficulties, it manages to stay in the list of the world’s ten largest economies in 2023. However, 2022 was a bad year for the Russian economy, with its GDP dropping by 2.1% due to western sanctions in wake of the war in Ukraine. The country’s economic outlook is gloomy in 2023 as well.
7. France
GDP: $2.7 trillion
With a GDP of $2.7 trillion in 2022, France ranks seventh in the largest economies in the world in 2023. Much of the 2.6% GDP growth last year was driven by a substantial carryover effect from 2021. High energy prices caused the economy to slow down in the second half of the year and is forecast to remain subdued in 2023 as well. France’s projected GDP growth rate for this year is 0.7%.
6. United Kingdom
GDP: $3.1 trillion
The United Kingdom is Europe’s second largest economy, with a GDP size measured at above $3 trillion in 2022. The country, currently though, is facing one of its worst energy and cost of living crises. Political instability, which saw three different prime ministers hold office in 2022 has not helped provide public and investor confidence that is vital to stabilize the economy.
5. India
GDP: $3.4 trillion
India, in 2023, is fifth among the largest economies in the world in 2023, with a GDP of $3.4 trillion. It is the strongest country in South Asia, and fast catching up to compete with China over Asian supremacy. Having said that, while India may have one of the highest nominal GDPs in the world, its GDP per capita is extremely low with a large percentage of its population living in abject poverty.
4. Germany
GDP: $4 trillion
Germany is Europe’s most powerful economy. It is also the world’s third largest export country. Almost 70% of the $4 trillion GDP in 2022 was contributed by the services sector, according to a report in KPGM. The country’s GDP is expected to grow at 0.4% in 2023.
3. Japan
GDP: $4.2 trillion
Japan is Asia’s second strongest economy and ranks third among largest economies in the world in nominal GDP in 2023. In 2022, the country had an output of $4.2 trillion. Japan’s major exports include cars and electronics equipment. The country’s GDP grew by 2.7% in the first quarter of 2023 – higher than the expected growth rate of 1.9% that was projected at the beginning of the year.
2. China
GDP: $18.1 trillion
China’s astonishing economic rise in the last three decades has earned it the status of being the second largest economy in the world. IMF sized the Chinese economy at $18.1 trillion in 2022 in terms of nominal GDP. The OECD has lifted projection of China’s economic growth from 4.6% to 5.3% for 2023. The Chinese Yuan is the fifth most powerful currency in the world, holding a 3% share as the global reserve currency. At least eight countries have begun or are considering trading with China in yuan in place of the U.S. Dollar.
1. United States
GDP: $25.4 trillion
The United States of America sits at the top when it comes to the largest economies in the world in the year 2023. It had a GDP of over $25 trillion in 2022 – accounting for nearly 24% of the global output. It is home to some of the largest companies in the world, such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Lockheed Martin Corporation (NYSE:LMT). Some U.S. states have a higher GDP than many of the biggest countries in the world. California for example, with its GDP of $3.5 trillion, is close to India and Germany’s figures. Another key strength of the United States is its currency. The U.S. Dollar is the world’s dominant reserve currency. 59% of all foreign exchange reserves in central banks across the world are maintained in the greenback. It accounts for nearly 85% of all forex trade with a daily volume of $6.6 trillion. This is discussed in detail in our article, the 5 Most Powerful Currencies in the World.
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