In this article, we will look at the 20 Most Powerful Countries in the World By Economy.
The Power Players: A Look at the World’s Leading Economies
The global economic landscape is a complex tapestry woven from the strengths and challenges of individual nations. Certain countries consistently rise to the forefront, wielding significant influence through the sheer power of their economies. This introductory section delves into the key factors that define economic might, explores the current global economic outlook, and introduces some of the world’s leading economic players.
Defining Economic Power
A nation’s economic power hinges on a confluence of factors. Gross domestic product (GDP), a measure of the total value of goods and services produced within a country’s borders, is a significant indicator. Strong GDP growth signifies a vibrant and expanding economy. Additionally, low inflation rates demonstrate price stability, fostering consumer confidence and investment. High employment opportunities signify a healthy workforce and contribute to overall economic well-being. Finally, robust foreign and domestic investment allows for continued expansion and innovation.
The Global Economic Outlook in 2024
The International Monetary Fund (IMF) paints a cautiously optimistic picture for the global economy in its April 2024 update. Global growth is projected to remain steady at 3.2% in 2024 and 2025, following a similar performance in 2023. Advanced economies, including the United States, Japan, and much of Western Europe, are expected to see a slight rise in growth to 1.7% in 2024 compared to the previous year’s 1.6%. However, emerging and developing economies, often more susceptible to external pressures, might experience a slight slowdown, with growth projected to dip from 4.3% in 2023 to 4.2% in 2024.
Inflation: A Cause for Concern?
One of the most pressing challenges for many economies has been inflation. Fortunately, there have been positive developments. Headline inflation, which measures the overall rise in the price of goods and services, has begun to ease and is approaching pre-pandemic levels for many countries. By the latter part of 2023, global inflation had fallen to around 2.3%, a significant decrease from the peak of 9.5% witnessed in the second quarter of 2022.
However, the picture remains uneven. While inflation has cooled down in advanced economies, it continues to pose a challenge for emerging and developing economies. While the peak of 13.7% in the first quarter of 2022 has been surpassed, inflation in these economies remains comparatively high at 9.9% in the last quarter of 2023. This disparity stems partly from uncontrolled inflation in some countries. For instance, Turkey reported an annual consumer price inflation exceeding 69% in April 2024, though the government anticipates a decline in the coming months.
Our Methodology
We have ranked the 20 most powerful countries in the world using their GDP, GDP growth rates, GDP per capita, and GDP per capita growth rates, all sourced from IMF. The list is arranged in ascending order of countries’ GDP.
20 Most Powerful Countries in the World by Economy
20. Switzerland
GDP Current Prices (2024): $938.458 billion
Real GDP Growth Rate (2024): 1.3%
GDP Per Capita (PPP) (2024): $91,930
GDP Per Capita Growth Rate (2024): 7.18%
Switzerland is a mountainous Central European Country. It is renowned for its tourist attractions and was one of the most visited countries in the world in 2024. Switzerland ranks as the 20th most powerful country in the world by economy, with a GDP of $938.458 billion and a GDP per capita growth rate of 7.18%. On March 27, Reuters reported that the Swiss economy picked up during the first quarter of 2024. The economy grew by 0.3% quarter on quarter during the last three months of 2023, leading to key cuts in interest rates for the first time in 9 years. The growth in the economy of Switzerland is attributed to its growing service sector, however, the manufacturing sector remains low-performing due to slow global demand. The Swiss Central Bank is confident that the overall economy is improving and the business outlook looks strong, therefore anticipating the services and manufacturing sector to deliver growth and increase in sales.
19. Saudi Arabia
GDP Current Prices (2024): $1.106 trillion
Real GDP Growth Rate (2024): 2.6%
GDP Per Capita (PPP) (2024): $70,330
GDP Per Capita Growth Rate (2024): 1.71%
Saudi Arabia ranks as the 19th most powerful country in the world by economy. The GDP of the country is growing at 2.6% in 2024 and it has a GDP per capita of $70,330. The economy of Saudi Arabia is backed by its strong oil and petroleum sector and it is also the second biggest oil-producing country in the world. Moreover, Saudi Arabia is also developing its non-oil sector to further boost its economy. On May 5th, Reuters reported that Saudi non-oil business activity grew at a steady rate in April. The seasonally adjusted Saudi Arabia Purchasing Managers index was well above the 50.0 point mark that denotes expansion and was recorded to be at 57.0 points in April and March.
18. Türkiye
GDP Current Prices (2024): $1.114 trillion
Real GDP Growth Rate (2024): 3.1%
GDP Per Capita (PPP) (2024): $43,920
GDP Per Capita Growth Rate (2024): 14.83%
Türkiye ranks as the 18th most powerful country in the world by economy. The country has a GDP of $1.114 trillion as of 2024 and a GDP growth rate of 3.1%. Apart from its economic strength Türkiye also has one of the most powerful militaries in the world and spent approximately $10.64 billion on defense in 2022. On April 17th Reuters reported Türkiye is taking steps to strengthen its medium-term economic program. The government is prioritizing increasing public savings, and investment, and also aims to accelerate structural reforms. Turkish President, Tayyip Erdogan expects economic growth to reach 4% and the current account deficit to be at 2.5% by the end of 2024, mainly due to the positive impact of increased exports.
17. Netherlands
GDP Current Prices (2024): $1.143 trillion
Real GDP Growth Rate (2024): 0.6%
GDP Per Capita (PPP) (2024): $74,160
GDP Per Capita Growth Rate (2024): 5.55%
The Netherlands is a Northwestern European country. While it ranks as the 17th most powerful country in the world by economy, it is also one of the most competitive countries in Europe, with an Insider Monkey Competitiveness score of 74.81. The Netherlands has a GDP current prices of $1.143 trillion and its GDP per capita is growing at 5.55% during the current year.
16. Indonesia
GDP Current Prices (2024): $1.476 trillion
Real GDP Growth Rate (2024): 5%
GDP Per Capita (PPP) (2024): $16,860
GDP Per Capita Growth Rate (2024): 7.83%
Indonesia is a Southeast Asian Country that ranks 16th on our list of the 20 most powerful countries in the world by economy. The country has a GDP of $1.476 trillion and its GDP per capita is growing at 7.83% during the current year. On May 6th, Reuters reported that Indonesia’s growth for the fiscal first quarter of 2024 was ahead of the 5% growth rate expected by economists. The economy of Indonesia grew by 5.11% on a yearly basis during the January to March period.
15. Spain
GDP Current Prices (2024): $1.647 trillion
Real GDP Growth Rate (2024): 1.9%
GDP Per Capita (PPP) (2024): $52,010
GDP Per Capita Growth Rate (2024): 5.57%
Spain ranks as the 15th most powerful country in the world by economy. The country has a GDP of $1.674 trillion in 2024, with a growth rate of 1.9%. Moreover, the country’s GDP per capita is growing at 5.57%. It has a population of 48.38 million as of 2024.
14. South Korea
GDP Current Prices (2024): $1.761 trillion
Real GDP Growth Rate (2024): 2.3%
GDP Per Capita (PPP) (2024): $59,330
GDP Per Capita Growth Rate (2024): 4.54%
South Korea is an East Asian nation with a GDP of $1.761 trillion as of 2024. South Korea is not only one of the most powerful countries in the world by economy, it is also one of the wealthiest countries in Asia, with $237,644 average wealth per person as of 2021. Moreover, the GDP and GDP per capita of South Korea are growing at 2.3% and 4.54% respectively in 2024. On April 25th, Reuters reported that the South Korean economy grew at the fastest pace in over two years during the fiscal forest quarter of 2024. The GDP for the country during the January to March period was 1.3% higher as compared to the previous three quarters and was recorded to be one of the sharpest expansions since the fourth quarter of 2021.
13. Australia
GDP Current Prices (2024): $1.790 trillion
Real GDP Growth Rate (2024): 1.5%
GDP Per Capita (PPP) (2024): $66,630
GDP Per Capita Growth Rate (2024): -1.40%
Australia ranks as the 13th most powerful country in the world by economy. The country has a GDP of $1.790 trillion, with a growth rate of 1.5%. Moreover, Australia has a GDP per capita of $66.630 as of 2024.
12. Mexico
GDP Current Prices (2024): $2.017 trillion
Real GDP Growth Rate (2024): 2.4%
GDP Per Capita (PPP) (2024): $25,960
GDP Per Capita Growth Rate (2024): 9.19%
Mexico is a North American country that ranks 12th on our list of most powerful countries in the world by economy. The country has a GDP of $2.017 trillion, which is growing at 2.47% as of 2024. Moreover, Mexico has a high GDP per capita growth rate of 9.19%.
11. Russia
GDP Current Prices (2024): $2.057 trillion
Real GDP Growth Rate (2024): 3.2%
GDP Per Capita (PPP) (2024): $38,290
GDP Per Capita Growth Rate (2024): 2.45%
Russia is a vast country spanning Eastern Europe and North Asia. The country ranks 11th on our list of the 20 most powerful countries in the world by economy. On April 23rd, Reuters reported that the Russian ministry has improved its growth projections for 2024 to 2.8% from the previously anticipated 2.3% growth rate. Moreover, the IMF also increased its growth projections for the country and anticipated growth at 3.2% during the year. The rise in growth projections is mainly attributed to Russia’s strong government spending, high consumer spending, and strong oil exports despite war-related sanctions.