Global Economy 2025: The Biggest Economies In The World!

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Grip Invest
Published on
Jul 23, 2024
Last Updated on
Mar 26, 2025
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    Introduction

    In the era of globalisation, the influence of one country over the other is usually determined by the size of its economy. The GDP, or Gross Domestic Product, is the most common measure for this calculation. The power of the largest economies in the world is determined by its influence on trade, geopolitics, negotiations and more. This blog explores the structure, growth trend and other dynamics of the top 10 best economies in the world.

    Key Takeaways

    Key Takeaways

    • The world's top 10 economies are projected to contribute 67% of global GDP in 2025.
    • The USA leads with a GDP of $30.34 trillion, followed by China, Germany, and Japan.
    • India ranks 5th globally and is expected to surpass Japan by 2026.
    • GDP is the most widely used measure to assess a country’s economic strength and influence.
    • Factors like trade policies, political stability, and sectoral strengths impact GDP growth.

    Measuring The Size Of An Economy

    A valuation of an economy is the product of multiple factors, such as consumption, businesses, production, and more. Measuring these factors separately may not present an accurate picture for comparison. Therefore, countries have boiled down to one measure - Gross Domestic Product. The GDP ranking of the largest economies in the world plays a crucial role in international trade influence, diplomatic power, financing and more.

    Apart from GDP, there are other indicators like Gross National Product (GNP), Human Development Index, Wealth Index and Gross National Income (GNI). However, GDP is the most explanatory and popular measure.

    What Is GDP and How Is It Calculated?

    The biggest economies in the world are decided by their GDP, which measures the total economic value of goods and services produced in the boundary of a country. It is calculated by different methods as follows:

    GDP calculation method

    Description

    Expenditure

    It calculates spending on the products and services.

    GDP = C+I+G+X

    Here,

    C = consumption by households

    I = investments

    G = government expenditure

    X = net export derived by deducting imports from exports.

    Income

    It sums up the income of all the factors of production in an economy.

    Production

    It calculates the value generated by different sectors at each production level in the country.

    Expenditure method is the most considered GDP calculation approach throughout the world due to its simplicity.

    These GDP values are represented in USD as it is one of the most common currencies for trade. Based on the GDP levels, the largest economies in the world are decided. Usually, this country adds significant value to the overall global economy and influence over major aspects of it.

    10 Largest Economies In The World

    The following table lists the 10 best economies in the world, based on the GDP at current price data in the World Economy Outlook by the International Monetary Fund (IMF). These 10 top economies in the world are projected to jointly contribute 67% of the global GDP in 2025.

    Explore these top economies in the world in detail to understand their GDP structure, influence and growth trend.

    1. United States Of America - USD 30.34 Trillion

    The country is often termed as the economic superpower as nearly 59% of the global foreign exchange reserve is in the US Dollar2. The leader of all the biggest economies in the world contributed nearly 26% of the global GDP in 20231. The expertise or strength of the USA lies in its technological advancement and global influence. The growth indicates that the US economy may grow by 21.5% up to USD 35.46 Trillion in 20293.  

    2. China - USD 19.53 Trillion

    Harnessing its power from manufacturing prowess, the country is in the spotlight for its pacing growth. It accounts for nearly 17% of the global GDP. 

    China is considered one of the largest economies in the world, specifically in Asia, as it is a leading exporter in crucial goods like semiconductor parts, batteries and other machines. China contributes nearly 35% of the value to total gross productions in the world. The GDP of China is expected to grow at a 6.1% compound annual growth rate (CAGR)4.

    3. Germany - USD 4.92 Trillion

    The economy is popular for its resilient attitude towards growth. Germany is mainly dependent on its industrial sector and automotive expertise. The GDP value of this economy is expected to grow at 18% by 2029 to reach USD 5.57 Trillion5. In 2023, it contributed nearly 24% to the total GDP of the European Union6.

    4. Japan - USD 4.39 Trillion

    It is one of the best economies in the world in terms of its strength in electronic manufacturing. After the pandemic effect on the economy, the country is yet to recover to its pre-pandemic GDP levels. 

    GDP of Japan is expected to grow at 4.5% CAGR to recover from the pandemic effect by 20297. The global influence of Japan was evident with the Yen-Carry Trade effect, when the Bank of Japan raised the interest rate and it adversely affected the global market8.

    5. India - USD 4.27 Trillion

    India is known as one of the fastest-growing economies and a frontier in leading emerging economies in the world. Its strength has traditionally been the services due to its high population, but it is focusing on empowering the manufacturing sector. 

    Indian GDP is expected to grow by 10.15% CAGR by 2029 and it may surpass Japan in 20269. However, some of the key concerns for India are poor GDP per capita, income inequality, unemployment and corruption.

    6. United Kingdom - USD 3.73 Trillion

    The pace of UK GDP growth has slowed due to the dip in the economy due to the global market crash in 2009 and Brexit. Post Brexit, the international trade of the UK was adversely affected and UK goods exports were down by 30%10. By 2029, the GDP of the UK is expected to grow by 21.7% to reach INR 4.37 Trillion. 

    However, political imbalance and inflation are key hurdles in this growth. Since 1990, some of the main contributing sectors in the UK have been services and real estate11.

    7. France - USD 3.28 Trillion

    The country has been one of the top economies in the world of defence manufacturing and export. It contributes nearly 9.6% to the global defence exports from FY 2020-24. Moreover, sectors like hospitality, finance and dairy agriculture have been some of the key contributors12

    The GDP of France will contribute 16.4% to the European GDP in 2023. Moreover, estimates suggest that the GDP of France will grow at 3.3% CAGR up to 202/9.

    8. Italy - USD 2.46 Trillion

    Italy is one of the best economies in the world of luxury and hospitality. However, the country was adversely struck by the global market crash in 2008 and is yet to recover its GDP level. Currently, Italy contributes 2% in the global gross production.

    After 16 years of volatile economic growth, the country is expected to recover with 3% year-on-year growth. Moreover, the GDP of Italy is projected to grow by 15% up to 202913

    9. Canada - USD 2.33 Trillion

    The country is one of the largest economies in the world that has benefited from the constant influx of workforce. Moreover, some of its key strengths are its farming products and trade networks. Canada was the biggest exporter in key agricultural products like fertilizers in 2023.

    The country is expected to grow by nearly 26% up to 2029 to attain the GDP level of USD 2.79 Trillion. However, aspects like trade tariffs from the USA and China, housing affordability and political instability can adversely affect this growth.

    10. Brazil - USD 2.31 Trillion

    Brazil is a key influence and one of the largest economies in the Latin American region. However, in terms of ranking in the top economies in the world, its place has degraded in recent years due to natural disasters, global pressure and internal political issues.

    Brazil was the third largest exporter of food and agricultural products in FY 202214. The GDP of Brazil is projected to grow at 5.4% CAGR up to 2029, to reach USD 2.85 Trillion. Some of the key sectors contributing to this growth can be petrochemicals, real estate and agriculture.

    Conclusion

    Globalisation has a dual effect on these countries. Listing the biggest economies in the world based on the GDP level can help understand their global influence, financial strength and overall position. These 10 top economies in the world are projected to jointly contribute 67% of the global GDP in 2025.

    Stay ahead of global economic trends. Explore investment opportunities in high-growth economies with Grip Invest!

    Frequently Asked Questions On 10 Biggest Economies In The World

    1. Is India top 5 in GDP?

    Yes, the Indian economy is ranked 5th in the world in terms of GDP. It is expected to grow by nearly 62% up to 2029. Moreover, its steady pace indicates that India may surpass Japan in the upcoming years to become the 4th largest economy. 

    2. How is the size of the economy measured?

    The most accepted measure to calculate the size of an economy is GDP or Gross Domestic Product. It calculates the value of goods and services produced in the geographical boundary of a country. It is presented in terms of current prices and constant prices. Moreover, it can be calculated in three ways - Expenditure, income and value.

    3. Are there countries expected to surpass the current largest economy?

    The largest economy in the world is the United States of America and it accounts for 26% of the global GDP. Therefore, surpassing it in the near future seems impractical. However, China is in active efforts to gain the largest economy spot.

    4. How does GDP impact the ranking of countries?

    One of the most crucial roles played by GDP ranking is its effect on international relations and trade. Moreover, the growth trend indicates the potential strength of a country and its policy structure. It can also help in deciding the credit rating of a country for financing its growth.


    References

    1. International Monetary Fund, accessed from: https://www.imf.org/external/datamapper/NGDPD@WEO/OEMDC/ADVEC/WEOWORLD/USA

    2. Indian Express, accessed from: https://indianexpress.com/article/research/an-exorbitant-privilege-how-thr-dollar-emerged-as-the-global-reserve-currency-9707777/

    3. International Monetary Fund, accessed from:  https://www.imf.org/external/datamapper/NGDPD@WEO/OEMDC/ADVEC/WEOWORLD/USA

    4. International Monetary Fund, accessed from:   https://www.imf.org/external/datamapper/NGDPD@WEO/USA?zoom=USA&highlight=USA

    5. International Monetary Fund, accessed from:    https://www.imf.org/external/datamapper/NGDPD@WEO/DEU?zoom=DEU&highlight=DEU

    6. World Bank Group, accessed from: https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?locations=EU

    7. International Monetary Fund, accessed from: https://www.imf.org/external/datamapper/NGDPD@WEO/JPN?zoom=JPN&highlight=JPN

    8. World Economic Forum, accessed from: https://www.weforum.org/stories/2024/08/explainer-carry-trades-and-how-they-impact-global-markets/

    9. Business Standard, accessed from: https://www.business-standard.com/economy/news/surpassing-japan-india-to-become-4th-largest-economy-by-2026-phdcci-125011500853_1.html

    10. BBC, accessed from: https://www.bbc.com/news/articles/cdrynjz1glpo

    11. House of Commons Library, Research Briefing, accessed from: https://researchbriefings.files.parliament.uk/documents/CBP-8353/CBP-8353.pdf

    12. Stockholm International Peace Research Institue, accessed from: https://www.sipri.org/media/press-release/2025/ukraine-worlds-biggest-arms-importer-united-states-dominance-global-arms-exports-grows-russian

    13. International Monetary Fund, accessed from: https://www.imf.org/external/datamapper/NGDPD@WEO/ITA?zoom=ITA&highlight=ITA

    14. World Bank, accessed from: https://rb.gy/csee41


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