In this article, we look at the 10 largest economies in the world ranked by PPP. For an analysis on global economic dynamics and role that corporations play, head to 50 Largest Economies in the World Ranked by PPP.
10. France
GDP (PPP): $3.70 trillion
France had a GDP growth of 2.6% in 2022. The size of its economy in PPP terms was measured at $3.70 trillion. This year the economy is likely to slow down and be subdued to a rise in energy prices.
9. United Kingdom
GDP (PPP): $3.71 trillion
The United Kingdom is Europe’s second largest economy. In 2022, the country’s GDP was estimated to be $3.71 trillion. Currently, the UK is going through its worst energy and cost of living crisis. The ongoing political turmoil which has seen three prime ministers hold office since 2022 is not helping provide public and investor confidence which are vital ingredients to stabilize the economy.
8. Brazil
GDP (PPP): $3.84 trillion
Brazil had a GDP based on PPP of $3.84 trillion in 2022. The economy is poised for further growth in the coming years. PwC has projected Brazil to be the fifth largest economy in the world by 2050.
7. Indonesia
GDP (PPP): $4.04 trillion
Indonesia is one of the top emerging economies, and is the largest economy in Southeast Asia. In 2022, the IMF estimated the size of the economy at over $4 trillion in PPP terms. Indonesia is projected by PwC to be the fourth largest economy in the world by 2050.
6. Russia
GDP (PPP): $4.77 trillion
Russia is the sixth largest economy in the world, boasting a GDP in PPP terms of $4.77 trillion. Due to its huge oil and natural gas reserves, Russia remains a major economic force, and will retain this status even in the coming decades according to economic projections.
5. Germany
GDP (PPP): $5.35 trillion
Germany is Europe’s strongest economy, and the fifth largest economy in the world. Much of the $5.35 trillion output in PPP terms in 2022 was contributed by the services sector. Germany’s GDP is expected to grow 0.4% in 2023.
4. Japan
GDP (PPP): $6.14 trillion
Japan is the second largest economy in Asia. It ranks as the third largest in the world in terms of nominal GDP, while fourth based on purchasing power parity (PPP). Automobiles and electronics equipment are the major exports of the country. Japan’s GDP has grown 2.7% in the first quarter of 2023.
3. India
GDP (PPP): $11.86 trillion
India is the third largest economy in the world in purchasing power parity. It is also the strongest country in South Asia, and is competing with China on supremacy over the Asian continent. In 2022, the IMF estimated the PPP size of the Indian economy to be $11.86 trillion. However, despite being an economic powerhouse, India ranks low on GDP per capita, with millions of its citizens living in abject poverty.
2. United States
GDP (PPP): $25.47 trillion
The United States is the largest economy in the world in terms of nominal GDP, but ranks below China when it comes to PPP. Despite that, currently the U.S. dominates the global economic order and remains the most influential power in the world. The U.S. Dollar is the most powerful currency in the world, accounting for nearly 85% of all daily forex trade. In addition to this, 59% of all foreign reserves in central banks across the world are maintained in the greenback.
1. China
GDP (PPP): $30.21 trillion
China is the largest economy in the world ranked by PPP. In 2022, the IMF measured the size of the Chinese economy to be above $30 trillion. China’s rise over the last three decades has been a remarkable story. The country poses a direct challenge to the global political and economic hegemony of the United States. China’s GDP is expected to expand by a further 5.3% in 2023.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a look at 50 Largest Economies in the World in 2023 and 20 Largest Economies in the World by 2050.
