Top 15 Countries by GDP in 2020

Top 15 Countries by GDP in 2020

Understanding the economic landscape of various countries will help you as you prepare for global expansion. Many businesses go global to access greater talent pools, reach new markets, and diversify their teams for better business continuity. With that being said, we’ve listed out the top 15 countries by GDP in 2020 as a guide. Click on any of the links to gain more in-depth reviews of these top countries.

1. United States

  • GDP: $19.48 trillion
  • GDP Growth: 2.27%
  • GDP per Capita: $59,939
  • Share of World GDP: 24.08%

A number of factors contribute to the success of the United States. An entrepreneurial environment that encourages hard work and long hours certainly helps. But decentralized government, advanced research universities, and favorable regulatory environments also contribute.

2. China 

  • GDP: $12.23 trillion
  • GDP Growth: 6.9%
  • GDP per Capita: $8,612
  • Share of World GDP: 15.12%

The Chinese economy, one of the fastest growing economies of the 21st century, now ranked as the second largest economy in the world, is currently valued at a GDP of $12.23 trillion. With China’s Belt and Road Initiative effectively merging its foreign and economic policy, promotion of using the Chinese Renminbi for the use of settlements has increased. The country is increasingly playing an influential role in the global economy. It has been the largest contributor to global growth since the financial crisis of 2008.

3. Japan

  • GDP: $4.87 trillion
  • GDP Growth: 1.71%
  • GDP per Capita: $38,214
  • Share of World GDP: 6.02%

Japan’s four main islands – Honshu, Hokkaido, Shikoku, and Kyushu – constitute nearly 98% of its land area. It has the world’s 3rd largest economy by nominal GDP and the 4th largest economy by purchasing power parity (PPP).

Ranked as one of most innovative countries in the world, Japan is the world’s largest electronic goods producer and the 3rd largest automobile manufacturer. The country generally has a surplus in annual trade and international investment. The country’s workforce is highly qualified and skilled, proving to be instrumental in organizational growth.

4. Germany

  • GDP: $3.69 trillion
  • GDP Growth: 2.22%
  • GDP per Capita: $44,680
  • Share of World GDP: 4.56%

Expected to reach $4.37 trillion in 2020, Germany has the 4th largest GDP in the world. The total value of exports and imports is equal to 86.9% of GDP. Germany is a European nation with the biggest drivers of its economy being its service industries, including telecommunication, healthcare, and tourism. 

The nation employs a social market economy that emphasizes the value of open-market capitalism and also ensures a number of social services guarantees. The country is ranked #1 in the world for entrepreneurship due to its skilled labor force, highly developed infrastructure, and technological expertise.

5. India

  • GDP: $2.65 trillion
  • GDP Growth: 6.68%
  • GDP per Capita: $1,980
  • Share of World GDP: 3.28%

The Republic of India is a federal democracy that consists of 29 states and 7 union territories. It is the largest democracy and the 6th largest economy in the world. India has thriving manufacturing, technology, and service sectors. Since 2014, the rate of foreign direct investment (FDI) inflows to India has grown steadily as some key policy changes were incorporated by the government to facilitate this growth. 

Some strategic steps have been taken to stimulate India’s business environment including reforms to remove bottlenecks in key business areas, reducing minimum capital requirement, and simplifying the process of obtaining necessary licenses.

6. United Kingdom

  • GDP: $2.63 trillion
  • GDP Growth: 1.79%
  • GDP per Capita: $39,532
  • Share of World GDP: 3.26%

The United Kingdom (UK), also known as the United Kingdom of Great Britain and Northern Ireland consists of England, Wales, Scotland, and Northern Ireland. It is the 5th largest economy in the world and the 2nd largest in Europe in terms of GDP. The UK ranks high in the annual Global Competitiveness Reports and the World Bank’s Ease of Doing Business Rankings. Its GDP is expected to grow from $2890 billion in 2019 to $3170 billion in 2020.

7. France 

  • GDP: $2.58 trillion
  • GDP Growth: 1.82%
  • GDP per Capita: $39,827
  • Share of World GDP: 3.19%

France is the 7th largest economy in the world. It is the most visited destination in the world and consequently has a thriving tourism industry. Also, foreign trade is an essential component of its economy. 

The value of imports and exports comprise 63% of the country’s GDP. Strong protection of property rights and an efficient regulatory framework encourage investors. France ranks 32 in the World Bank’s 2019 Ease of Doing Business index. There are foreign players in various sectors, and 31 out of Fortune 500 companies are from this prominent EU member.

8. Brazil

  • GDP: $2.05 trillion
  • GDP Growth: 0.98%
  • GDP per Capita: $9,881
  • Share of World GDP: 2.54%

Brazil’s economy is the 9th largest in the world with an estimated worth of natural resources being $21.8 trillion. The country’s diverse and open economy has developed flourishing trade relationships with more than 100 different countries. According to the 2019 Index of Economic Freedom, the total FDI in Brazil was $62.7 billion. 

The Brazilian government promotes foreign investment in scientific and technological infrastructure. Brazil’s moderate climate, excellent infrastructure, supportive government and wealth of natural resources make it a highly favored destination for foreign investment.

9. Italy

  • GDP: $1.94 trillion
  • GDP Growth: 1.50%
  • GDP per Capita: $32,038
  • Share of World GDP: 2.40%

Italy’s economy is the 3rd largest in the Eurozone and the 12th largest by GDP. In addition to its sizable economy, Italy is one of the most influential countries in Europe; it is a key member of the Eurozone, EU, the G7, the OECD, and the G20.

Italy’s diversified economic growth is propelled by the consumer goods industry. GDP’s expenditure side includes 61% of household consumption, 19% of government expenditure, and 17% of the gross fixed capital formation. Exports of services and goods contribute to 30% of GDP while imports account for 27%, adding 3% to GDP.

10. Canada

  • GDP: $1.64 trillion
  • GDP Growth: 3.05%
  • GDP per Capita: $44,841
  • Share of World GDP: 2.04%

Canada has a mainly service-based economy. The threshold for foreign investment in Canada is CAD 5 million for direct investments, and CAD 50 million for indirect investments. Globally, Canada ranks as the 12th largest exporter. The country has also been a key member of the World Trade Organization (WTO) since 1995. 

It also has extensive trading ties with many nations due to its bilateral and regional Free Trade Agreements (FTAs). A well-educated workforce, multicultural/multilingual coexistence, a thriving economy, and the government’s support for setting up business make Canada a preferred investment destination.

11. Russia

  • GDP: $1.57 trillion
  • GDP Growth: 1.55%
  • GDP per Capita: $10,846
  • Share of World GDP: 1.95%

Russia has the largest landmass of all countries in the world and boasts natural resources worth $75 trillion, according to World Bank estimates. Ever since the privatization of Russia’s energy and defense-related sectors in the 1990s, the country has taken great strides when it comes to growth. 

Revenues from oil, natural gas, and energy drive the Russian economy. Foreign trade is important as the total value of imports and exports is equal to 46.7% of GDP.

12. South Korea

  • GDP: $1.53 trillion
  • GDP Growth: 3.06%
  • GDP per Capita: $29,958
  • Share of World GDP: 1.89%

South Korea was considered a developing country until the 1960s. Due to far-reaching economic reforms (referred to as the Miracle of the Hangang River), the country’s economy entered a period of rapid growth (about an annual 10% growth for over 30 years). Today, South Korea‘s GDP is about $2 trillion, and it’s one of the most developed and industrialized countries in the world.

South Korea places great importance on education, innovation and investment into research and development. The country has a highly skilled workforce earning a high median household income. Services provide the majority of the country’s GDP at 59%, with industry is at 38% and agriculture at 2%.

13. Australia 

  • GDP: $1.32 trillion
  • GDP Growth: 1.96%
  • GDP per Capita: $53,831
  • Share of World GDP: 1.64%

Australia has the 13th largest economy in the world, with an overall GDP of $1.32 trillion and a GDP per capita of $53,831. The economy experienced slower growth in 2017, with a 1.96% increase in GDP. 

Having rolled out in early 2017, Australia’s new foreign policy (a type of white paper agenda) has created a roadmap for the country’s economic, security, and foreign policy relations. The nation is ranked as the 12th best country in the world to set up a business due to low entry costs and streamlined procedures.

14. Spain 

  • GDP: $1.31 trillion
  • GDP Growth: 3.05%
  • GDP per Capita: $28,175
  • Share of World GDP: 1.62%

Spain is the 2nd largest country in the EU and its economy ranks 28th among 44 countries in the European region. Spain’s economy is facilitated by structural reforms, transparent judicial/regulatory systems, and sound economic institutions.

Steady modernization has helped the Spanish economy grow continually with the industry sector contributing nearly 27% to the country’s GDP. The total value imports and exports is equal to 65.5% of GDP.

15. Mexico

  • GDP: $1.15 trillion
  • GDP Growth: 2.04%
  • GDP per Capita: $9,224
  • Share of World GDP: 1.42%

Mexico is the 2nd largest economy in South America and the 15th largest economy in the world. It has a GDP (nominal) of $1.15 trillion, while its GDP in terms of purchasing power parity (PPP) is $2.45 trillion. More than 90% of exports are conducted under free trade agreements (FTAs), with more than 40 countries including the US, China, Japan, and the EU. 

The country’s export trading mainly revolves around oil, silver, vegetables, cotton, coffee, and fruits. It has also emerged as a major manufacturing hub for auto parts and electronics. Prudent monetary policies, sensible fiscal policy, and structural reforms have improved Mexico’s macroeconomic performance and bolstered the economy.