In this article, we look at the 5 largest economies in Asia. To read our detailed analysis and see how we ranked these economies, head to the 20 Largest Economies in Asia.
5. Indonesia
GDP: $1.3 trillion
Indonesia is the biggest economy in southeast Asia, boasting a GDP of over $1.3 trillion in 2022. It is considered as one of the emerging markets and has been forecasted by PwC to become the fourth largest economy in the world by 2050. Indonesia is also a member of the G20. The Asian Development Bank (ADB) has projected the Indonesian economy to grow by 4.8% in 2023 and 5% by 2024. Last year, Microsoft Corporation (NASDAQ:MSFT) announced to join a $100 million investment in PT Bukalapak.com, an Indonesian online market place.
4. South Korea
GDP: $1.7 trillion
South Korea is one of Asia’s biggest economies with a GDP of $1.7 trillion and a growth rate of 2.6% in 2022 – which is expected to decline to 1.6% in 2023 due to a slowdown in the U.S. and EU markets. Refined petroleum, parts and machinery of motor vehicles, and integrated circuits remained South Korea’s top exports in 2022. China, the U.S., and Japan were its largest trading partners.
3. India
GDP: $3.4 trillion
India is among the three largest Asian economies. In 2022, the IMF measured the size of its economy at $3.4 trillion. India is actively competing with China over economic and political supremacy in Asia. India’s GDP expanded by 6.1% in the final quarter of 2022, beating estimates. That being said, while India is huge market for international investors, it ranks way below other developed and developing countries in Asia on per capita GDP. More than 300 million people still live in abject poverty according to the ADB.
2. Japan
GDP: $4.2 trillion
Japan’s GDP has grown by 2.7% in the first quarter of 2023. The country’s major exports are electronics equipment and cars. In 2022, the size of the Japanese economy was estimated to be $4.2 trillion in terms of nominal GDP, which also made it the third largest economy in the world after China and the United States. However, economic experts have painted a gloomy picture of the economy for later this year, suggesting that impact from rate hikes in the U.S. and Europe are likely to affect Japanese exports.
1. China
GDP: $18.1 trillion
China is the largest economy in Asia, and the second biggest in the world in terms of GDP. IMF estimated the size of the Chinese economy to be $18.1 trillion in 2022. It is also the second most powerful country in the world. The Chinese Yuan has a three percent share as the global reserve currency, with at least 8 countries beginning or considering trading with China in yuan in place of the greenback. The PwC has projected China to be the largest economy in the world by 2050, holding 20% of share in the global GDP.
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