Top 5 Largest Economies in the World 2018
Every year, the report about the largest economies of the world emerges. The numbers may vary from year to year, but the main competitors are always the same. United States has always been able to maintain its position at the top since 1871. Nonetheless, US is getting a tough competition from China.
As per the normal GDP rate which is measured by US dollars, it is recorded that United States tops the list followed by China and Japan respectively. The largest economies of the world for 2018, based on their GDP rate are enlisted below.
United States had trouble in the domestic level due to the continuous change in the global landscape. Nevertheless, it still maintains its position on the top with the expectations that the GDP would exceed 20 USD trillion this year. The economy of United States is about 20% of the total output internationally and is ahead of China. The US is the hub of several technologically advanced sectors which results in 80% of the total output. The corporations of US also have a key role to play in the international stage. The economy of the country is highly supported by companies in the field of retail, financial services, healthcare and many more.
It is expected that the US economy would grow by 2.4% in 2018 while 2.0% in 2019.
China has made a significant growth over the past few years in the economy. Back in 1978, China was in the ninth position with the nominal GDP of 214 billion. 35 years later China is at the second position with the nominal GDP of USD 9.2 trillion. China has introduced a number of economic reforms to bring about the grown. In the past 35 years, China has experienced a massive growth and has approached the economy in a completely new way with “new normal”. It is expected that the economic growth of the country in 2018 would at least by 6.4%.
Japan stands in the third position with the economy of USD 5.0 trillion. In the years of 1990, Japan’s economic growth was quite significant as that of today’s China. Japan was on the significant verge of growth from 1960s, 70s and 80s. Nevertheless, the economic growth of Japan fell.
The years of 1990s are also referred as Lost Decade because of the slow growth rate. The economic growth had slowed down from 1999 to 2004 due to the deflation in the mark. The deflation was a result of the speculative excess in the financial sector. Next, the government undertook Quantitative Easing which showed no positive signs. Nonetheless, Japan’s economy did respond from 2005 and left back the European economy behind.
It is being expected that the growth in 2018 for Japan would be 1.2%, while than in 2019 will be 1.0%.
Germany has seen a massive growth in its GDP. The rise is about 1.6% on an average basis. The German economy fell down by 5.2% in the year 2009 as the companies did not spend owing to the financial crisis. Nevertheless, Germany’s economy improved the very net year itself. Germany’s economy faced a backlash in the years of 2011 and 2013. Ever since then, the German economy has seemed to improve and has been able to retain its pot on the 4th list. The nominal GDP of Germany for the year 2018 is USD 4 trillion. The growth in GDP is expected to be 2.0%.
India has made a significant position in the world economy leaving behind the UK and French economies. The nominal GDP of India for the year 2018 is around USD 2.9 trillion.
The growth in economy of India was about 9% from 2003 and 2007. Nevertheless, it cut off in 2008 due to financial year and since then India experienced a slow growth. But the economy managed to retain to the normal speed as the stock market improved. Recently, India beat China for becoming the fastest growing economy of the world. The growth of India in 2018 is supposed to be 7.4%.
These were some of the fastest growing economy of the world.