In this article, we will be navigating through the 25 largest economies in the world in 2024. If you wish to skip our detailed analysis, you can go directly to the 5 Largest Economies in the World in 2024.
2023: An Uncertain Year for the Global Economy
2023 was the year when the global economy witnessed an uneven recovery from the aftereffects of the COVID-19 pandemic and the war in Ukraine. Overall, the economic activity was unable to return to pre-pandemic levels in the emerging market and developing economies. Tightening monetary policies against inflation also played a primary role in limiting a global economic rebound. According to the projections reported by the IMF in October 2023, advanced economies were to experience an economic slowdown in 2023. It was also forecasted that the growth for emerging markets and developing economies would decline modestly.
Let’s analyze how the world’s leading economies such as the United States, China, and India faced economic uncertainty in 2023. The United States performed better than expected due to the resilience shown by its labor market and housing market. Although the Federal Reserve continued to engage in interest rate hikes, unemployment was only 3.7% during the third quarter of 2023. Homeowners were also capable of sustaining their net worth amid high home prices.
China, the world’s second-largest economy, was referred to as a burden to global economic growth in 2023. On December 29, 2023, CNN reported that various challenges restrict progress for China. The slowdown effect on the overall economy in 2023 resulted from the strong lockdowns imposed on Beijing during the pandemic’s outbreak. Due to the rising scrutiny, foreign direct investment in China experienced a strong decline during the third quarter of 2023. Other limiting factors include a property crisis and high unemployment rates among the youth. Another economic issue relates to demographics such as the declining fertility rates which could reduce the labor supply and increase the debt burden for the country in the future. Against the structural problems in the economy, the Chinese government appears to be hopeful for the economy to rebound.
During a challenging global economic environment, India has emerged as a resilient power which contributed 16% to the world’s growth in 2023. On January 15, the World Economic Forum reported that India is all set to become the world’s third-largest economy over the next five years. Between 2022 and 2023, the country was successful in achieving the second-highest growth rate among other G20 nations. Apart from fostering innovation and technology, India has also been investing in public infrastructure.
Global Economic Outlook for 2024
As reported by the International Monetary Fund, global economic growth which was estimated at 3.1% in 2023 is expected to remain at 3.1% in 2024. Although this projected growth is higher than the last forecast made in October 2023, it is still lower than the historical annual average of 3.8%.
Regional Forecast for Economies in 2024
For advanced economies, the IMF has projected that their economic growth will drop from 1.6% in 2023 to 1.5% in 2024 before slightly going up to 1.8% in 2025. In the case of the United States, growth has been forecasted to drop from 2.5% in 2023 to 2.1% in 2024. Simultaneously, the euro area is expected to experience a recovery in its growth rate. This recovery will be backed up by circumstances such as real income growth, reduced inflation, and stronger household consumption due to the subsiding effects of the Russian invasion of Ukraine, a conflict that broke out almost two years ago. Due to the diminishing effects of high energy prices, the United Kingdom will also be witnessing a modest rise in its economic growth in 2024.
For the emerging market and developing economies, growth will continue to remain at 4.1% in 2024 before it climbs higher in 2025. In Asia, India and China serve to be the leading global powers. Backed up by its domestic demand, the economic growth of India will remain resilient. On the other hand, China’s growth has been projected at 4.6% in 2024 which exceeds the previously forecasted growth rate due to a higher government spending for tackling natural calamities, and a stronger than expected growth in 2023. Emerging and developing Europe is also expected to improve its economic growth from 2.7% in 2023 to 2.8% in 2024.
United States: A Powerful Economic and Business Hub
Being an advanced economy, the United States hosts some of the most valuable companies worldwide. Some of the companies thriving in the US and internationally include Amazon.com Inc. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL). Let’s take a look at what these companies have been up to.
Amazon.com Inc. (NASDAQ:AMZN) strives to enhance customer experience and foster economic growth using generative AI. On February 8, Amazon.com Inc. (NASDAQ:AMZN) reported that it has joined the U.S. Artificial Intelligence Safety Institute Consortium. This collaboration is focused on developing and deploying safe and responsible AI. The firm will also be contributing $5 million to the National Institute of Standards and Technology which has established the consortium, to ultimately help organizations gauge the safety of their foundation models.
Microsoft Corporation (NASDAQ:MSFT) builds upon innovation to cater to a global digital audience. On February 7, the company reported that it has updated the Microsoft Copilot by improving the overall experience with the use of AI and introducing new suggested prompts and image creation capabilities. Microsoft Copilot has created more than 5 billion chats and 5 billion images up till now. Images generated can also be customized using inline editing. Microsoft Corporation (NASDAQ:MSFT) also plans to launch Designer GPT inside Copilot which will be offering a canvas for visualizing ideas.
As of 2024, Apple Inc.’s (NASDAQ:AAPL) installed base of active devices has exceeded 2.2 billion globally. On February 1, the company reported strong financial results for the first quarter of fiscal 2024. Apple Inc. (NASDAQ:AAPL) reported earnings per share of $2.18, beating EPS estimate by $0.08. The company’s revenue for the quarter amounted to $119.58 billion, up 2.07% year-over-year and ahead of revenue consensus by $1.31 billion.
With this context, let’s take a look at the 25 largest economies in the world in 2024.
25 Largest Economies in the World in 2024
Our Methodology:
In order to compile a list of the 25 largest economies in the world in 2024, we sourced data from the IMF. We selected the Gross Domestic Product (GDP), as of 2023, as our metric. We have also mentioned the GDP per capita for all countries, which was also sourced from the IMF. We have ranked the 25 largest economies in the world in 2024 in ascending order of their GDPs.
25 Largest Economies in the World in 2024
25. Sweden
GDP: $597.11 Billion
GDP Per Capita: $55,220
According to the IMF, the GDP of Sweden was $597.11 billion and the country had a GDP per capita of $55,220. Sweden ranks as one of the 25 largest economies in the world in 2024.
24. Argentina
GDP: $621.83 Billion
GDP Per Capita: $13,300
According to the IMF, the GDP of Argentina was $621.83 billion in 2023 and the country’s GDP per capita was $13,300. Hence, Argentina is one of the major global economies.
23. Belgium
GDP: $627.51 Billion
GDP Per Capita: $53,660
As reported by the IMF, Belgium’s GDP is $627.51 billion, as of 2023. Furthermore, the country has a GDP per capita of $53,660.
22. Taiwan
GDP: $751.93 Billion
GDP Per Capita: $32,340
Taiwan is another large global economy. According to the IMF, the country’s GDP was $751.93 billion in 2023 and it had a GDP per capita of $32,340.
21. Poland
GDP: $842.17 Billion
GDP Per Capita: $22,390
Poland is another European nation that qualifies as one of the 25 largest economies in the world. Real GDP of the country has been forecasted to grow by 2.8% in 2024. As reported by the IMF, Poland’s GDP was $842.17 billion in 2023.
20. Switzerland
GDP: $905.68 Billion
GDP Per Capita: $102,870
According to the IMF, Switzerland’s GDP was $905.68 billion in 2023 and the country had a GDP per capita of $102,870. Hence, Switzerland is another large world economy.
19. Saudi Arabia
GDP: $1.07 Trillion
GDP Per Capita: $32,590
Based on GDP, Saudi Arabia is one of the world’s largest economies in 2024. The country’s GDP was $1.07 trillion in 2023. IMF has projected the country’s real GDP to grow by 2.7% in 2024.
18. Netherlands
GDP: $1.09 Trillion
GDP Per Capita: $61,770
The Netherlands ranks as one of the 25 largest economies in the world. According to the IMF, the country’s GDP was $1.09 trillion in 2023. Real GDP of the Netherlands has been forecasted to grow by 0.7% in 2024.
17. Turkey
GDP: $1.15 Trillion
GDP Per Capita: $13,380
As reported by the IMF, Turkey’s GDP was $1.15 trillion in 2023. IMF has projected the country’s real GDP to grow by 3.1% in 2024. Hence, Turkey is another large economy in the world.
16. Indonesia
GDP: $1.42 Trillion
GDP Per Capita: $5,110
Indonesia is one of the largest economies in the world. According to the IMF, the country’s GDP was $1.42 trillion in 2023. Real GDP of Indonesia has been forecasted to grow by 5.0% in 2024.
15. Spain
GDP: $1.58 Trillion
GDP Per Capita: $33,090
As reported by the IMF, Spain’s GDP was $1.58 trillion in 2023. Furthermore, the real GDP of the country is expected to grow by 1.5% in 2024.
14. Australia
GDP: $1.69 Trillion
GDP Per Capita: $63,490
The real GDP of Australia is expected to grow by 1.4% in 2024 which is higher than the forecast last made in October 2023. According to the IMF, the country’s GDP was $1.69 trillion in 2023.
13. South Korea
GDP: $1.71 Trillion
GDP Per Capita: $33,150
As reported by the IMF, South Korea’s GDP was $1.71 trillion in 2023. Real GDP of South Korea is expected to grow by 2.3% in 2024. Hence, South Korea ranks as one of the largest economies in the world.
12. Mexico
GDP: $1.81 Trillion
GDP Per Capita: $13,800
Mexico is another large global economy. According to the IMF, the country’s GDP was $1.81 trillion in 2023. Real GDP of Mexico is expected to grow by 2.7% in 2024.
11. Russia
GDP: $1.86 Trillion
GDP Per Capita: $13,010
The 25 largest economies in the world include Russia as well. According to the IMF, the country’s GDP was $1.86 trillion in 2023. Real GDP of Russia is expected to grow by 2.6% in 2024.
10. Canada
GDP: $2.12 Trillion
GDP Per Capita: $53,250
Canada builds upon its developed sectors of manufacturing and services. As reported by the IMF, Canada’s GDP was $2.12 trillion in 2023. The nation’s real GDP is expected to grow by 1.4% in 2024.
9. Brazil
GDP: $2.13 Trillion
GDP Per Capita: $10,410
Brazil’s real GDP has been forecasted to grow by 1.7% in 2024. According to the IMF, the GDP of the country was $2.13 trillion in 2023. Hence, Brazil is one of the major global economies.
8. Italy
GDP: $2.19 Trillion
GDP Per Capita: $37,150
Italy is one of the largest economies in Europe. As reported by the IMF, the country’s GDP was $2.19 trillion in 2023. It has also been projected that Italy’s real GDP will grow by 0.7% in 2024.
7. France
GDP: $3.05 Trillion
GDP Per Capita: $46,320
France is another established and diversified economy. According to the IMF, the country’s GDP was $3.05 trillion in 2023. France’s real GDP has been projected to grow by 1% in 2024.
6. United Kingdom
GDP: $3.33 Trillion
GDP Per Capita: $48,910
As reported by the IMF, the GDP of the United Kingdom was $3.33 trillion in 2023 and the country had a GDP per capita of $48,910. The capital city of London serves as a global financial center.
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Disclosure: None. 25 Largest Economies in the World in 2024 is originally published on Insider Monkey.