|Largest economies by nominal GDP in 2018|
Gross domestic product (GDP) is the market value of all final goods and services from a nation in a given year. Countries are sorted by nominal GDP estimates from financial and statistical institutions, which are calculated at market or government official exchange rates. Nominal GDP does not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluctuations may change a country's ranking from one year to the next, even though they often make little or no difference in the standard of living of its population.
Comparisons of national wealth are also frequently made on the basis of purchasing power parity (PPP), to adjust for differences in the cost of living in different countries. PPP largely removes the exchange rate problem, but has its own drawbacks; it does not reflect the value of economic output in international trade, does not take into account the differences of quality of goods and services among countries, and it also requires more estimation than nominal GDP. On the whole, PPP per capita figures are less spread than nominal GDP per capita figures.
The United States is the world's largest economy with a GDP of approximately $20.513 trillion, notably due to high average incomes, a large population, capital investment, moderate unemployment, high consumer spending, a relatively young population, and technological innovation. Tuvalu is the world's smallest national economy, with a GDP of about $32 million, because of its very small population, a lack of natural resources, reliance on foreign aid, negligible capital investment, demographic problems, and low average incomes.
Although the rankings of national economies have changed considerably over time, the United States has maintained its top position since the Gilded Age, a time period in which its economy saw rapid expansion, surpassing the British Empire and Qing dynasty in aggregate output. Since China's transition to a market-based economy through privatisation and deregulation, the country has seen its ranking increase from ninth in 1978 to second to only the United States in 2016 as economic growth accelerated and its share of global nominal GDP surged from 2% in 1980 to 15% in 2016. India has also experienced a similar economic boom since the implementation of economic liberalisation in the early 1990s. When supranational entities are included, the European Union is the second largest economy in the world. It was the largest from 2004, when ten countries joined the union, to 2014, after which it was surpassed by the United States.
The first list includes estimates compiled by the International Monetary Fund's World Economic Outlook, the second list shows the World Bank's data, and the third list includes data compiled by the United Nations Statistics Division. The IMF definitive data for the past year and estimates for the current year are published twice a year in April and October. Non-sovereign entities (the world, continents, and some dependent territories) and states with limited international recognition (such as Kosovo, the State of Palestine and Taiwan) are included in the list in cases in which they appear in the sources. These economies are not ranked in the charts here, but are listed in sequence by GDP for comparison. In addition, non-sovereign entities are marked in italics.
|Per the International Monetary Fund (2018)||Per the World Bank (2017)||Per the United Nations (2017)|
- List of countries by GDP (PPP)
- List of countries by GDP (nominal) per capita
- List of countries by GDP (PPP) per capita
- List of countries by past and projected GDP (nominal)
- List of countries by past and projected GDP (PPP)
- The European Union (EU) is an economic and political union of 28 member states that are located primarily in Europe. The EU is included as a separate entity in The World Factbook of CIA because it has many attributes of independent nations, being much more than a free-trade association such as ASEAN, NAFTA, or Mercosur. As the EU is not a country, China is the second ranked country on these lists.
- Figures exclude Taiwan, and special administrative regions of Hong Kong and Macau.
- Figures exclude Republic of Crimea and Sevastopol.
- Data for Syria's 2014 GDP is from the September 2011 WEO Database, the latest available from the IMF.
- Figures exclude special administrative regions of Hong Kong and Macau.
- Includes Western Sahara.
- Covers mainland Tanzania only.
- Data are for the area controlled by the Government of the Republic of Cyprus.
- Excludes Abkhazia and South Ossetia.
- Excludes data for Transnistria.
- "What is GDP and why is it so important?". Investopedia. IAC/InterActiveCorp. 26 February 2009. Retrieved 23 May 2016.
- Moffatt, Mike. "A Beginner's Guide to Purchasing Power Parity Theory". About.com. IAC/InterActiveCorp. Retrieved 31 May 2014.
- Ito, Takatoshi; Isard, Peter; Symansky, Steven (January 1999). "Economic Growth and Real Exchange Rate: An Overview of the Balassa-Samuelson Hypothesis in Asia" (PDF). Changes in Exchange Rates in Rapidly Development Countries: Theory, Practice, and Policy Issues. National Bureau of Economic Research. Retrieved 23 May 2016.
- Callen, Tim (28 March 2012). "Purchasing Power Parity: Weights Matter". Finance & Development. International Monetary Fund. Retrieved 30 May 2014.
- Callen, Tim (28 March 2012). "Gross Domestic Product: An Economy's All". Finance & Development. International Monetary Fund. Retrieved 31 May 2014.
- Vo, Lam Thuy (30 May 2012). "The World's Richest Countries and Biggest Economies, In 2 Graphics". Planet Money. National Public Radio. Retrieved 4 June 2014.
- Burgen, Emily; et al. (5 April 2012). "An Elusive Relation Between Unemployment and GDP Growth: Okun's Law". Economic Trends. Federal Reserve Bank of Cleveland. Retrieved 3 June 2016.
- Vitez, Osmond. "The Importance of Consumer Spending". Houston Chronicle. Hearst Corporation. Retrieved 4 June 2014.
- Koesterich, Russ (16 May 2014). "America The Youthful? Yes, On a Relative Basis". BlackRock. Retrieved 4 June 2014.
- Landefeld, J. Steven (11 February 2008). "The Multi-Factor Productivity Residual" (PDF). Measuring Innovation’s Role in GDP & Productivity Growth. Bureau of Economic Analysis. Retrieved 4 June 2014.
- "Tuvalu". Europa. European Commission. 17 February 2012. Retrieved 2 June 2016.
- Matthews, Chris (5 October 2014). "5 Most Powerful Economic Empires of All Time". Fortune. Time, Inc. Retrieved 23 May 2016.
- Kroeber, Arthur R. (2016). China's Economy: What Everyone Needs to Know. New York, United States: Oxford University Press.
- Kau, Michael Ying-mao (30 September 1993). "China in the Era of Deng Xiaoping: A Decade of Reform". Studies on Contemporary China. Taylor & Francis. Retrieved 23 May 2016.
- Hu, Zuliu; Khan, Mohsin S. (April 1997). "Why Is China Growing So Fast?" (PDF). Economic Issues. International Monetary Fund. Retrieved 26 May 2016.
- "World Economic Outlook Database". International Monetary Fund. 10 April 2019.
- Rodrik, Dani; et al. (March 2004). "From "Hindu Growth" to Productivity Surge: The Mystery of the Indian Growth Transition" (PDF). National Bureau of Economic Research. Retrieved 23 March 2016.
- "The economics of enlargement". Europa. European Commission. 30 October 2010. Retrieved 26 May 2016.
- "Report for Selected Country Groups and Subjects". World Economic Outlook. International Monetary Fund. April 2019.
- "GDP (current US$)". World Development Indicators. World Bank. Retrieved 4 May 2019.
- "GDP and its breakdown at current prices in US Dollars". United Nations Statistics Division. January 2019.
- "United Nations Statistics Division - National Accounts". unstats.un.org.
- CIA (2014). "The World Factbook". Retrieved 15 March 2015.
Although the EU is not a federation in the strict sense, it is far more than a free-trade association such as ASEAN, NAFTA, or Mercosur, and it has certain attributes associated with independent nations: its own flag, currency (for some members), and law-making abilities, as well as diplomatic representation and a common foreign and security policy in its dealings with external partners. Thus, inclusion of basic intelligence on the EU has been deemed appropriate as a new, separate entity in The World Factbook.
- "All countries and regions/subregions (totals) for all years - sorted by region/subregion". United Nations. United Nations. Retrieved 28 January 2019.