Which of the following countries was among the worlds 10 most competitive nations in 2022?
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Singapore is a high-income economy with a gross national income of US$54,530 per capita, as of 2017. The country provides one of the world’s most business-friendly regulatory environment for local entrepreneurs and is ranked among the world’s most competitive economies. Show
In the decades after independence, Singapore rapidly developed from a low-income country to a high-income country. GDP growth in the city-state has been amongst the world’s highest, at an average of 7.7% since independence and topping 9.2% in the first 25 years. After rapid industrialization in the 1960s catapulted the island nation’s development trajectory, manufacturing became the main driver of growth. In the early 1970s, Singapore reached full employment and joined the ranks of Hong Kong SAR, Republic of Korea, and Taiwan a decade later as Asia’s newly industrializing economies. The manufacturing and services sectors remain the twin pillars of Singapore’s high value-added economy. The overall growth of the Singapore economy was 3.2% in 2018. Value-added manufacturing, particularly in the electronics and precision engineering sectors, remain key drivers of growth, as are the services sector, particularly the information and communications industries, which grew 6.0% year-on-year, and the finance & insurance industries, which grew 5.9% year-on-year. Economic growth is expected to moderate in 2019, with the government forecasting a range of 1.5% to 3.5%, projecting the rate to be slightly below the middle of the forecast range. In 2017, Singapore launched the regional finance hub ‘Asia’s Infrastructure Exchange’: “the go-to place where infrastructure demand and supply can connect, where infrastructure expertise and financing can be obtained and infrastructure needs are met.” In its announcement, the government highlighted the country’s strong ecosystem, one that integrates infrastructure players along the whole value chain – multilateral banks, private financiers, lawyers, accountants, engineers and other professional services. In the most recent World Bank Human Capital Index, Singapore ranks the best country in the world in human capital development. This means that a child born today in Singapore will be 88% as productive when she grows up, as if she enjoyed complete education and full health. Together with strong financial support from the government, the country continues to strengthen the nimbleness and flexibility of its workforce by providing continuing education such as the Skillsfuture initiative. Government spending on continuing education will nearly double, to more than S$1 billion yearly. Last Updated: Apr 09, 2019 Gross domestic product (GDP) is an estimate of the total value of finished goods and services produced within a country’s borders during a specified period, usually a year. GDP is popularly used to estimate the size of a country’s economy. GDP is most commonly measured by using the expenditure method, which calculates GDP by adding up spending on new consumer goods, new investment spending, government spending, and the value of net exports (exports minus imports). Throughout most of the world, countries’ GDPs fluctuate with the phases of different economic cycles, against a backdrop of longer-term economic growth over time; however, it’s interesting to see that despite these ups and downs, the top economies as measured by GDP don’t budge easily from the positions that they hold. Compared to the top 25 economies in 2000, our research has found that only two countries in the top 25—Thailand and Indonesia—weren’t there before. That said, there have been some big movers within the list. China was in 13th place in 2000 and has been sitting in second place since 2010. Further down the list, Indonesia, one of the two aforementioned newcomers to the list, vaulted forward from the 27th largest economy in 2000, currently sitting at 16, while Thailand leaped from 32nd and now sits at 24. In 2021, Saudi Arabia climbed from 20th to 18th, while Switzerland fell from 18th to 20th. 2021 is the most recent annual data available for these countries, which shows that countries began to recover from the COVID-19 pandemic, which had a major impact on economies around the world. Because Covid resulted in slashed energy prices, cratered tourism, lower trade volumes, and shuttered stores due to quarantines, countries experienced record-breaking declines in GDP in 2020. The vast majority of the top 25 countries experienced negative GDP growth in 2020, but 2021 GDP numbers have shown a recovery from 2020. Key Takeaways
Measuring GDPThis article mentions several popular ways to measure GDP, all of which are drawn from the World Bank database:
Throughout this list and article, the term GDP refers to nominal GDP in current U.S. dollars unless otherwise specified.
1. United States
The United States’ economy is the largest in the world as measured by nominal GDP. The biggest contributor to that GDP is the economy’s service sector, which includes finance, real estate, insurance, professional and business services, and healthcare. The United States has a relatively open economy, facilitating flexible business investment and foreign direct investment in the country. It is the world’s dominant geopolitical power and is able to maintain a large external national debt as the producer of the world’s primary reserve currency. The U.S. economy is at the forefront of technology in many industries, but it faces rising threats in the form of economic inequality, rising healthcare and social safety net costs, and deteriorating infrastructure. 2. China
China has the world’s second-largest nominal GDP in current dollars and the largest in terms of PPP. With annual growth that consistently outpaces that of the United States, China may be on track to become the largest economy in the world by nominal GDP in the years to come. As China has progressively opened its economy over the past four decades, economic development and living standards have greatly improved. As the government has gradually phased out collectivized agriculture and industry, allowed greater flexibility for market prices, and increased the autonomy of businesses, foreign and domestic trade and investment have taken off. Coupled with an industrial policy that encourages domestic manufacturing, this has made China the world’s number one exporter. Despite these advantages, China faces some significant challenges, such as a rapidly aging population and severe environmental degradation. 3. Japan
Japan is the third-largest economy in the world. Its GDP crossed the $5 trillion mark in 2018. Strong cooperation between government and industry and advanced technological know-how have built Japan’s manufacturing and export-oriented economy. Many major Japanese businesses are organized as networks of interlinked companies known as keiretsu. After the Lost Decade of the 1990s and the impact of the global Great Recession, Japan has seen an uptick in growth in recent years under the policies of former Prime Minister Shinzo Abe; however, Japan is poor in natural resources and dependent on energy imports, especially after the general shutdown of its nuclear power industry following the 2011 Fukushima disaster. Japan has also struggled with a rapidly aging population. 4. Germany
Fourth among world economies is Germany. Germany is also Europe’s largest economy. Germany is a top exporter of vehicles, machinery, chemicals, and other manufactured goods and has a highly skilled workforce. Germany, however, faces some demographic challenges to its economic growth. Its low fertility rate makes replacing its aging workforce more difficult, and its high levels of net immigration strain its social welfare system. 5. The United Kingdom
The United Kingdom has the fifth-largest economy in the world. The U.K. economy is driven by its large service sector, particularly in finance, insurance, and business services. The nation’s extensive trading relationship with continental Europe has been greatly complicated by the resolution of Brexit subsequent to the 2016 vote to leave the European Union (EU). As of Jan. 31, 2020, the U.K. is officially not a member of the EU, but contentious negotiations over trade relations between the two are ongoing. 6. India
India is the sixth-largest economy in the world. Because of its large population, India has the lowest per-capita GDP on this list. India’s economy is a mixture of traditional village farming and handicrafts alongside booming modern industry and mechanized agriculture. India is a major exporter of technology services and business outsourcing, and the service sector makes up a large share of its economic output. Liberalization of India’s economy since the 1990s has boosted economic growth, but inflexible business regulation, widespread corruption, and persistent poverty pose challenges to ongoing expansion. 7. France
France has the seventh-largest GDP in the world. Tourism is an important industry, and France receives the most visitors of any country each year. France is a mixed economy that has many private and semi-private businesses across a diverse range of industries. However, there is still heavy government involvement in certain key sectors, such as defense and electrical power generation. The French government’s commitment to economic intervention in favor of social equality also creates some challenges for the economy, such as a rigid labor market with high unemployment and a large public debt relative to other advanced economies. 8. Italy
The world’s eighth-largest GDP belongs to Italy. It is also the eurozone’s third-largest economy. Italy’s economy and level of development vary notably by region, with a more developed, industrial economy in the north and underdeveloped southern regions. Italy faces persistently sluggish economic growth due to a very high public debt, an inefficient court system, a weak banking sector, an inefficient labor market with chronically high youth unemployment, and a large underground economy. 9. Canada
Canada is the world’s ninth-largest economy. Canada has a well-developed energy extraction sector, with the world’s third-largest proven oil reserves. Canada also has impressive manufacturing and service sectors, based mostly in urban areas near the U.S. border. Canada’s free trade relationship with the United States means that three-quarters of Canadian exports head to the U.S. market each year. Canada’s close ties to the United States mean that it has developed largely in parallel to the world’s largest economy. 10. South Korea
Rounding out the top 10 economies in the world by GDP is South Korea. South Korea’s economy is a 20th-century success story that is today firmly established as an advanced, industrial economy. Known for its strategy of export-led growth and the dominance of its chaebols (large business conglomerates), South Korea in recent decades has built a network of free trade agreements covering 58 countries that account for more than three-quarters of the world’s GDP. It is a major producer and exporter of electronics, telecommunications equipment, and motor vehicles. With this progress, however, South Korea also now faces some of the same challenges that many other advanced economies are dealing with, including slower growth and an aging workforce. 11. Russia
Russia is the world’s 11th largest economy. Russia has moved toward a more market-based economy over the 30 years since the collapse of the Soviet Union, but government ownership of and intervention in business is still common. As a leading exporter of oil and gas, as well as other minerals and metals, Russia’s economy is highly sensitive to swings in world commodity prices. In 2022, Russia launched an invasion against its neighbor, Ukraine. As a result of its actions, the country was hit by
many sanctions and other economic punishments, which are expected to greatly hurt its economy in 2022 and beyond. 12. Brazil
Brazil is the 12th largest economy in the world and the largest in South America. Brazil’s diversified economy runs the gamut from heavy industries, such as aircraft and automotive production, to mineral and energy resource extraction. It also has a large agricultural sector that makes it a major exporter of coffee and soybeans. Brazil emerged from a severe recession in 2017 and suffered a series of high-level corruption scandals along the way. In the wake of these events, Brazil instituted a series of major economic reforms intended to rein in public spending and debt, invest in energy infrastructure, lower barriers to foreign investment, and improve labor market
conditions. 13. Australia
Australia is the 13th largest economy in the world Australia combines a relatively open domestic economy with an extensive network of free trade agreements with trading partners all around the Asia-Pacific Rim. This works to the advantage of Australia’s abundant natural resources and agricultural export industries; however, it has also left Australia vulnerable to swings in world commodity demand and prices in energy (coal and natural gas), metals (iron ore and gold), and agricultural products (beef and sheep products). 14. Spain
Spain's GDP makes it the 14th largest economy in the world. Spain’s economy suffered severely during the Great Recession, with unemployment soaring above 25% and a rising national debt despite attempts at fiscal austerity. It has recovered in recent years as moderating inflation and labor costs have encouraged foreign investment and increased the competitiveness of Spain’s exports, including manufactured machinery and foodstuffs. However, political instability has hindered the government’s ability to sustain further economic reforms. 15. Mexico
Mexico is the 15th largest economy in the world. Over the past three decades, Mexico has emerged as a manufacturing economy under a series of free trade agreements with the United States, Canada, and 44 other countries. Many major U.S. manufacturers have integrated supply chains with counterparts or operations in Mexico. Mexico supports a variety of exports, including consumer electronics, vehicles, and auto parts, as well as petroleum and agricultural products. The international drug trade constitutes an ongoing challenge to Mexico’s development, contributing directly to violence and corruption in the country. Weak legal institutions have made it difficult to regulate and integrate the large informal economy that employs more than half of Mexico’s workforce. 16. Indonesia
Indonesia is the world’s 16th largest economy. Indonesia’s economy is the largest economy in Southeast Asia and is based largely on commodity export industries. Major exports include coal and petroleum products, in addition to agricultural commodities suitable for industrial use, such as rubber and palm oil. Indonesia's budget deficit for 2023 is targeted at 2.81% to 2.95% of GDP; however, regional inequality, lack of infrastructure, and governmental corruption remain problems for Indonesia’s rising economy. 17. Netherlands
The Netherlands stands as the 17th largest economy in the world. The Netherlands is a major commercial transportation hub, with some industrial manufacturing as well as petroleum extraction and processing. It has a highly developed agricultural sector and is the second-largest agricultural exporter in the world. The Netherlands has a large financial services sector, with assets four times the size of Dutch GDP. 18. Saudi Arabia
Saudi Arabia is the 18th largest economy in the world. The Saudi economy is heavily based on oil and is the world’s largest oil exporter. The Saudi government owns and operates much of the country’s major industry through its oil company, Aramco; however, with global environmental concerns driving increasing interest in developing non-fossil fuel energy sources, the Saudis are looking to diversify their economy by encouraging more private investment in healthcare and other service industries. The Saudi government has also begun to at least partially privatize Aramco, listing the company on the Saudi Stock Exchange through an initial public offering (IPO) in December 2019. 19. Turkey
Turkey is the 19th largest economy in the world. Turkey has a largely open economy, with large industrial and service sectors. Major industries include electronics, petrochemicals, and automotive production. Political turmoil and involvement in regional armed conflicts have led to some financial and currency market instability and uncertainty about Turkey’s economic future in recent years. 20. Switzerland
The Alpine nation of Switzerland is the 20th largest economy in the world. Switzerland has a large service sector, including financial services, and a high-tech manufacturing sector served by a highly skilled labor force. High-quality legal, political, and economic institutions and solid physical infrastructure set the stage for a productive economy with one of the highest per-capita GDPs in the world. 21. Poland
Poland is the 21st largest economy in the world. Heavy industry, including iron and steel production, machinery manufacturing, shipbuilding, and coal mining, is an important part of Poland’s economy. Poland’s business-friendly climate and sound macroeconomic policies allowed it to be the only EU country to avoid recession in the aftermath of the 2008 financial crisis. However, inefficient legal and regulatory structures and an aging population are challenges for Poland’s ongoing growth in the future. 22. Sweden
Sweden is the 22nd largest economy in the world. Sweden is a competitive economy, with a high standard of living and a mix of free enterprise alongside a generous social welfare state. Sweden’s manufacturing economy relies heavily on foreign exports, including machinery, motor vehicles, and telecommunications. Sweden has taken in a large number of new immigrants and thus faces a short- to medium-term challenge with integrating them into Swedish society and its labor market. 23. Belgium
Belgium is the 23rd largest world economy. Belgium is a trade and transport hub that has a diversified economy with a mix of services, manufacturing, and high-tech industry. Because of its deep integration with the rest of the European economy, Belgium is highly sensitive to swings in the overall economic performance of its neighbors. Belgium faces a high public debt burden relative to its GDP, which can constitute an obstacle to growth. 24. Thailand
Thailand is the 24th largest economy in the world. The Thai economy enjoys relatively
high-quality infrastructure, in addition to pro-free-enterprise and pro-investment policies. Thailand is highly dependent on exports, which account for about two-thirds of its GDP. Its main exports include electronics, agricultural products, motor vehicles and parts, and food products. Thailand also has a substantial international tourism industry. Its agricultural sector makes up approximately 10% of its economy but employs about 30% of its workers. 25. Ireland
Last but certainly not least is Ireland, the 25th largest world economy. A strong component of Ireland's economy is its export sector from foreign multinational corporations. Ireland has a low corporate tax of 12.5% and a pool of high-tech workers, making it an appealing place for foreign companies to set up shop and attractive for business investment. Due to international pressure, Ireland will implement more stringent tax laws. Its economy is supported by a strong export sector and job growth. How Do You Calculate GDP?Gross domestic product (GDP) is calculated as consumption (consumer spending) + government spending + investment (business spending) + net exports (exports - minus imports). What Are the Top 5 Largest Economies?The top-five largest economies in the world are the U.S., China, Japan, Germany, and the U.K., as measured by GDP. What Country Has the Strongest Economy?The U.S. has the strongest economy with the largest GDP in the world at $20.95 trillion. Which countries in the world are the most competitive?Denmark, Switzerland, Singapore, Sweden, Hong Kong, the Netherlands, Taiwan, Finland and Norway were the most competitive countries in the world in 2022, according to the IMD World Competitiveness Ranking 2022.
Which country has the strongest economy in the world 2022?This is based on the most recent data available from the World Bank.. United States: $20.89 trillion.. China: $14.72 trillion.. Japan: $5.06 trillion.. Germany: $3.85 trillion.. United Kingdom: $2.67 trillion.. India: $2.66 trillion.. France: $2.63 trillion.. Italy: $1.89 trillion.. What are the 10 largest economy in the world?% Share of the Global Economy. United States of. America. 23.93%. China. 18.45%. Japan. 5.14%. Germany. 4.39%. United Kingdom. 3.32%. Countries. 6–10. 12.49%. Countries 11–15. 7.96%. Countries 16–25. 7.88%. Which region is the most competitive in the world?Most competitive BRIC regions – Top 10. |
