In the article we are going to talk about the 50 Largest Economies in the World in 2024.
Global Economic Update
The global economy is facing a ‘see-saw’ kind of situation, facing political unrest that is impacting the global economy significantly. Rising tensions in the Middle East are creating havoc among global economies and if the war spreads across the region, it will have widespread economic impact worldwide. As of the July 2024 update, the IMF expects the global economic growth rate to be around 3.2% in 2024 and 3.3% in 2025. Services inflation is holding up progress on disinflation, which is creating a hurdle in monetary policy normalization.
The IMF pointed out in its July update that the US was experiencing signs of cooling. However, the drop in unemployment in the US reached near a three-year high of 4.3% in July, up from 4.15% in June. The fears of the labour market under pressure and the Fed still keeping the interest rates unchanged have impacted the stock market. Economists are pointing out that the economy is vulnerable to a recession, as things stand. Experts have mixed thoughts on an emergency rate cut before the next meeting in September. Economist and Wharton’s Professor Jeremy Siegel spoke to CNBC and said that the Fed is keeping the potential risk of recession in view and we might see an emergency rate cut if the data continues to go in the direction it is moving currently. However, Siege added that the Fed might not act at the moment and wait for the next meeting on September 31. Siegel anticipates the Fed to cut more than 0.25 basis points in September. Experts believe that making an emergency rate cut could signal more panic than stability and for stability, it is important that the Fed does not signal more panic.
Most important developments occurred in Asia, and the growth continues in India and China. The IMF has revised upwards for China with a 5% growth expected in 2024 and 4.5-4.6% growth anticipated in 2025. The Chinese economy is experiencing stronger consumption and stronger exports, which has led to revisions. Whereas, the Euro Area is expected to have a modest growth rate of 0.9% in 2024 and expected to increase to 1.5% in 2025.
What’s Happening in the Stock Market?
The panic among investors has led to wide sell-off around the global markets. Japan’s Nikkei saw the biggest drop in its history. On Monday, Japan’s stock market dropped by over 12%, recording the worst day for the index since the “Black Monday” of 1987. Things changed as the Bank of Japan announced an increase of around 0.25% in its key interest from a previous range of 0-0.1%.
The US stock market saw a huge sell-off with most of the companies in red. The tech giants dropped between 2% to 5% in a single trading session on Monday. The major development was the US labor market which experienced pressure as unemployment soared to 4.3%, reflecting a potential recession in the US. The S&P 500 fell 3%, its worst day since September 2022. The market crash has brought the index down 8.5% from an all-time high in July, but it still trades up 8.7% in 2024 overall.
Considering this market crash, it seems Warren Buffett’s Berkshire Hathaway was long expecting this to happen. Berkshire has been a seller of stocks for seven quarters straight, especially during Q2 2024, the company accelerated selling when it sold equities worth $75 billion. During the third quarter so far, Berkshire has sold the majority of its stake in Bank of America and Apple. Berkshire Hathaway now has record cash of $277 billion.
The economic growth of countries depends on two broad factors: one is population growth rate and the other is productivity growth rate which is a function of technological advancement or superiority. In this regard, the United States dominates the other countries. One such stock that’s contributing to the growth of the US is NVIDIA Corporation (NASDAQ:NVDA). The stock saw the highest drop in share price on Monday with shares dropping by 6.36%. NVIDIA Corporation (NASDAQ:NVDA) has been in the news for a while now and experts expect a lot from its AI projects going forward.
NVDA’s potential is based on its promises and its growing development in AI. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), with high demand due to its AI models. Some of the top customers of Nvidia include Amazon, Meta Platforms, Microsoft, and Alphabet, making up approximately 40% of its revenue. Tesla and OpenAI are also major customers of Nvidia. On July 31, Nvidia announced that Oracle is expanding its GPU-Accelerated Instances for AI. The new VM will expand Oracle Cloud Infrastructure’s (OCI) existing H100 portfolio, which includes an NVIDIA HGX H100 8-GPU bare-metal instance.
NVIDIA Corporation (NASDAQ:NVDA) has yet to justify its valuation, however, the company is improving its sales and increasing its cash. During Q1 2024, the company posted earnings per share of $0.61, up from an estimated EPS of $0.56. The revenue was reported around $26.04 billion, beating estimates by 6.04% and up by 262% year over year. Those investors who were worried about Nvidia’s valuation might have a chance to explore the stock during the current market crash. With a current price of $100.45, NVDA has an upside of almost 40% with a 90% ‘buy’ rating from 62 analysts.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) continued to lead both the market and the portfolio, remaining a top performer in the period gaining 36.7%. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand for artificial intelligence (AI) models. The company currently captures a 92% market share of data center GPUs and grew revenue, earnings and free cash flow (“FCF”) an astounding 126%, 392%, and 610%, respectively, over the last year. While we expect competition to increase, we think NVDA can continue to maintain top market share. While many are concerned with backlog times shortening, we think the rollout of the B100, which promises 2.5x better performance for only 25% more cost, later this year will create more shortages.With leading-edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”
Overall, NVIDIA Corp (NASDAQ:NVDA) ranks 3rd on Insider Monkey’s list titled Top 10 Latest AI Stock News and Analyst Ratings.
While we acknowledge the potential of NVIDIA Corp (NASDAQ:NVDA), there are cheaper opportunities in the market for investors looking to increase their exposure to AI. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
With that said, let’s take a look at the 50 largest economies in the world in 2024.
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Our Methodology
We shortlisted the 50 countries with the largest economies in the world based on their GDP (PPP). The data for GDP (PPP) of all the countries was gathered from the IMF, as of 2024. The countries with the largest economies in the world in 2024 are ranked in ascending order of their GDP (PPP).
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Note: We have excluded Israel and Ukraine due to ongoing wars and instability in the region.
50 Largest Economies in the World in 2024
50. Denmark
GDP (2024): $462 Billion
Denmark is a Scandinavian country in Europe and it is one of the largest economies in the world in 2024. Denmark has an estimated GDP (PPP) of around $462 billion, as of 2024.
49. Portugal
GDP (2024): $485.74 Billion
Portugal is one of the richest countries in Europe and is expected to grow by 1.7% in 2024. Portugal has a GDP (PPP) of around $485.74 billion, as of 2024.
48. Iraq
GDP (2024): $530.86 Billion
Iraq is progressing after years of war and is anticipated to grow by 1.4% in 2024. With a GDP (PPP) of around $530.86 billion, Iraq ranks 48th among the largest economies in the world in 2024.
47. Czech Republic
GDP (2024): $551.96 Billion
The Czech Republic is estimated to have a growth rate of a mere 0.7% in 2024. The Czech Republic is one of the biggest economies in Europe.
46. Peru
GDP (2024): $566.58 Billion
Peru ranks 46th among the largest economies in the world in 2024 with a GDP (PPP) of $566.58 billion. The South American country is estimated to grow by 2.5% in 2024.
45. Hong Kong
GDP (2024): $570.08 Billion
Hong Kong has a GDP (PPP) of just over $570 billion and it is estimated to grow by 2.9% in 2024.
44. Chile
GDP (2024): $622.78 Billion
Chile has an anticipated growth rate of around 2% in 2024. With a GDP (PPP) of $622.78 billion, Chile is one of the largest economies in the world in 2024.
43. Austria
GDP (2024): $634.36 Billion
Austria has a GDP (PPP) of $634.36 billion, as of 2024, with an expected growth rate of 0.4%.
42. Kazakhstan
GDP (2024): $693.41 Billion
Kazakhstan is expected to have a growth rate of 3.1% in 2024 and has a GDP of $693.41 billion. Kazakhstan ranks 42th among the largest economies in the world in 2024.
41. Ireland
GDP (2024): $712.06 Billion
Ireland is another European country on our list with an expected growth rate of 1.5% in 2024. Ireland is one of the biggest economies in the world with a GDP (PPP) of around $712 billion.
40. Sweden
GDP (2024): $736.40 Billion
Sweden is one of the largest economies in Europe and in the world in 2024. Sweden is expected to grow by 0.2% in 2024.
39. Algeria
GDP (2024): $768.52 Billion
Algeria is one of the largest economies in Africa with a GDP (PPP) of around $768.52 billion. Algeria’s expected growth rate for 2024 is around 3.8%.
38. Singapore
GDP (2024): $794.18 Billion
Singapore is one of the richest countries in the world. Singapore has a GDP (PPP) of around $794 billion and it is expected to grow at 2.1% in 2024.
37. Belgium
GDP (2024): $803.17 Billion
Belgium has a GDP (PPP) of just over $803 billion and ranks among the largest economies in the world in 2024. Belgium’s GDP is expected to grow by 1.2% in 2024.
36. Switzerland
GDP (2024): $816.46 Billion
Switzerland ranks 36th among the largest economies in the world in 2024. Switzerland has a GDP (PPP) of around $816.46 billion and it is estimated to grow by 1.3% in 2024.
35. Romania
GDP (2024): $817.99 Billion
Romania’s GDP is expected to grow by 2.8% in 2024. Romania is one of the richest countries in Europe.
34. United Arab Emirates
GDP (2024): $948.04 Billion
The United Arab Emirates is one of the richest Arab countries with a GDP (PPP) of $948 billion. The United Arab Emirates is estimated to have a growth rate of around 3.5% in 2024.
33. South Africa
GDP (2024): $1.02 Trillion
South Africa is one of the few economies in Africa with a GDP (PPP) of over $1 trillion. South Africa is one of the largest economies in the world in 2024.
32. Colombia
GDP (2024): $1.04 Trillion
Colombia has a GDP (PPP) of around $1.04 trillion and is expected to grow by 1.1% in 2024. Colombia is one of the few economies in South America with a GDP of over $1 trillion.
31. Argentina
GDP (2024): $1.24 Trillion
Argentina is one of the few large economies suffering from extreme inflation. Argentina has an inflation rate of around 249%, as of 2024.
30. Malaysia
GDP (2024): $1.30 Trillion
Malaysia is one of the largest economies in Asia with a GDP (PPP) of around $1.30 trillion. Malaysia is expected to grow its GDP by 4.4% in 2024, one of the highest expected growth rates in the world in 2024.
29. Netherlands
GDP (2024): $1.33 Trillion
The Netherlands is one of the richest countries in Europe and has a GDP of around $1.33 trillion. The Netherlands ranks 29th among the largest economies in the world in 2024.
28. Philippines
GDP (2024): $1.39 Trillion
The Philippines has a GDP (PPP) of $1.39 trillion and is one of the largest economies in the world in 2024. The Philippines GDP is expected to grow by 6.2% in 2024.
27. Nigeria
GDP (2024): $1.44 Trillion
Nigeria is the largest economy in Africa with a GDP (PPP) of around $1.44 trillion. Nigeria is expected to have a growth rate of around 3.3% in 2024.
26. Vietnam
GDP (2024): $1.56 Trillion
Vietnam has a GDP (PPP) of $1.56 billion in 2024 with an expected growth rate of 5.8% this year. Vietnam ranks 26th among the largest economies in 2024.
25. Bangladesh
GDP (2024): $1.62 Trillion
Bangladesh has a GDP (PPP) of around $1.62 trillion and is one of the largest economies in Asia.
24. Pakistan
GDP (2024): $1.64 Trillion
Pakistan is expected to have a growth rate of 2% in 2024. With a GDP (PPP) of around $1.64 trillion, Pakistan is one of the largest economies in the world in 2024.
23. Thailand
GDP (2024): $1.64 Trillion
Thailand ranks 23rd among the largest economies in the world in 2024. Thailand’s GDP is expected to grow at 2.7% in 2024.
22. Australia
GDP (2024): $1.79 Trillion
Australia has a GDP (PPP) of around $1.79 trillion and has one of the largest economies in the world in 2024.
21. Taiwan
GDP (2024): $1.79 Trillion
Taiwan has an expected growth rate of 3.4% in 2024 and has a GDP (PPP) of around $1.79 trillion.
20. Poland
GDP (2024): $1.80 Trillion
Poland ranks 20th among the largest economies in the world in 2024. Poland is expected to have a growth rate of 3.1% in 2024.
19. Iran
GDP (2024): $1.85 Trillion
Iran’s economy has flourished over the past few years. In 2024, its GDP is expected to grow by 3.3% and ranks among the largest economies in the world.
18. Egypt
GDP (2024): $1.89 Trillion
Egypt has a GDP (PPP) of $1.89 trillion and is expected to grow at 3% in 2024.
17. Saudi Arabia
GDP (2024): $2.35 Trillion
Saudi Arabia is one of the fastest developing countries in the world and has a GDP (PPP) of around $2.35 trillion.
16. Canada
GDP (2024): $2.47 Trillion
Canada has a GDP (PPP) of around $2.47 trillion and is expected to grow by 1.2% in 2024. Canada ranks 16th among the largest economies in the world in 2024.
15. Spain
GDP (2024): $2.52 Trillion
Spain is one of the richest countries in Europe and has a GDP (PPP) of around $2.52 trillion. With an expected growth rate of 1.9%, Spain is one of the largest economies in the world in 2024.
14. South Korea
GDP (2024): $3.06 Trillion
South Korea has a GDP (PPP) of just over $3 trillion and is expected to grow by 3.8% in 2024.
13. Italy
GDP (2024): $3.35 Trillion
Italy ranks 13th among the 50 largest economies in the world in 2024. Italy has a GDP (PPP) of $3.35 trillion, as of 2024.
12. Mexico
GDP (2024): $3.43 Trillion
Mexico is one of the largest economies in the Americas with a GDP (PPP) of $3.43 trillion. Mexico’s GDP is estimated to grow by 2.4% in 2024.
11. Türkiye
GDP (2024): $3.83 Trillion
Türkiye is expected to grow by 3.1% in 2024. With a GDP (PPP) of $3.83 trillion, Türkiye ranks among the largest economies in the world in 2024.
10. France
GDP (2024): $3.99 Trillion
France has a GDP (PPP) of just under $4 trillion. France is expected to grow at 0.7% in 2024.
9. United Kingdom
GDP (2024): $4.03 Trillion
The United Kingdom has dropped its ranks in recent times. As of 2024, the United Kingdom has a GDP (PPP) of around $4.03 trillion.
8. Brazil
GDP (2024): $4.27 Trillion
Brazil is the largest economy in South America and one of the largest economies in the world in 2024. Brazil’s GDP is expected to grow by 2.2% in 2024.
7. Indonesia
GDP (2024): $4.72 Trillion
Indonesia is one of the largest economies in Asia. Indonesia’s expected growth rate for 2024 is around 5%.
6. Russia
GDP (2024): $5.47 Trillion
Russia is one of the largest economies in the world in 2024 with a GDP (PPP) of around $5.47 trillion. Russia is expected to grow by 3.2% in 2024.
5. Germany
GDP (2024): $5.68 Trillion
Germany is the fifth largest economy in the world. Germany has a GDP (PPP) of around $5.68 trillion, as of 2024.
