50 Best Performing Economies in the World in 2022

Top 50 economies of world Infographic

The infographic above presents a detailed analysis of the economic prosperity of the top 50 economies of the world taking six economic indicators into consideration. These indicators include GDP (Current USD) in trillions, current account balance, annual GDP growth rate, purchase power parity (current international dollars), per capita GDP (Current USD), and exports of goods & services as a percentage of GDP. Each of these economic parameters and indicators for measuring a country’s economic performance has been elucidated at the end of this article.

The economic performance of a country is the most crucial measure of a country’s influence, growth, and modernization. If we look around, the economic state of any nation directly affects the lifestyles of its citizens, healthcare infrastructure, progress of education, trade, and technological capabilities. In the top economies of the world, these dimensions of advancement often thrive in a way that sets a fine example for other nations.

However, in a world of high disparities between countries, we often see a wide gap between the economic abilities and performance of countries around the world. While some economies boom and flourish in unimaginable ways, others sink deep into recession simultaneously. Recently, we did see the economy of Sri Lanka doom while other economies continued to thrive.

Besides, ever since the outbreak of the COVID-19 pandemic, almost all economies of the world have suffered hefty losses due to disruption in trade and commerce activities at the global level. To substantiate, as per Statista, in the financial year 2020, the global economy suffered a loss of USD 2.96 trillion because of the COVID-19 outbreak.

Now, the world looks forward to leaving the impacts of the pandemic behind to restore normalcy. Nations have readjusted their economic targets and are keen on achieving them in a bid to emerge as economic superpowers in the years to come.

The stakes are pretty high and it remains interesting to see which economies outperform the current biggest economies in the world. For that, it is essential that we know which are the biggest economies in the world at present.

In this article, we present to you a meticulously compiled list of the 50 top economies of the world based on the most crucial metrics that evaluate a nation’s financial prosperity.

The compilation of this list has taken extensive research and effective analysis of each vital parameter of a nation’s economic performance. Before we present our list, who do you think is the richest country in the world? Let’s find out as we delve deep into the list of the top 50 economies of the contemporary world.

List of 50 top global economies

1. United States of America

The United States is the richest country in the world with a GDP worth 20.953 trillion USD in the financial year 2020. The United States has a favorable and stable political environment that supports robust trade and commerce activities in the country. Furthermore, the US the Democratic Party is in power currently in the US which supports a progressive taxation system and mitigation of economic inequalities in the country. Under the Joe Biden government, the economy is further expected to boom with further promotion of an open economy and liberal trade policies.

Furthermore, the most crucial industries with respect to the US economy include the healthcare industry, tech industry, construction, retail, commercial banking, and manufacturing. Besides, the top US industries by revenue include the retirement and pension plans industry, the health and medical insurance industry, cosmetic wholesaling, new car dealers, and so on.

2. China

China is the second largest economy in the world with an impressive GDP growth rate despite the economic aftermath of the COVID-19 pandemic. Besides, it is notable that the PPP of China is much higher than the US making it the strongest economy in the world in terms of purchasing power parity. Low-paid labor, intensive manufacturing, and hefty exports make the key pillars of the Chinese economy. However, at the same time, China's economic policies have resulted in social and environmental imbalances which may further result in economic imbalances. Also, the over the last few decades, the country’s economic sectors have shown incredible change management capabilities to match up with the US and compete with a high degree of rivalry.

Further, the largest industries in China by revenue include copper ore mining, construction, e-commerce, real estate, and software industries.

3. Japan

After China, Japan is the second largest Asian economy and third on the list of the top global economies. As evident from the above table, exports account for a large share of the country’s GDP which can be one of the key reasons for the economic growth and success of the country. Also, it is notable that the per capita income of Japan is much higher than the per capita GDP in Japan which can be attributed to the large difference in the populations of the two countries.

Probing further, the tech industry, consumer retail, and services industry, automotive industry, the tech industry, and manufacturing industries make the backbone of the country’s economy. As per Statista, the Japanese software industry generated a revenue of 16 trillion Japanese Yen in 2019 hence substantiating the fact that the tech and software industry is one of the most vital industries with respect to the Japanese economy.

4. Germany

Germany is the largest economy in Europe and fourth on the list of top global economies with a strong percentage of exports as a proportion of the gross domestic product. A government has been elected in Germany under the leadership of Olaf Scholz, the new Vice-Chancellor of Germany. Olaf Scholz hails from the Social Democratic Party which favors economic growth by promoting an economic environment that favors investments.

Further, speaking of the key industries in Germany, the country’s economy is dominated by the automotive sector, electrical industry, chemical, and mechanical engineering industries. To validate, as per Statista, the German automotive industry generated a staggering revenue of 378 Billion Euros in 2020. With Germany being the home to some of the most popular automotive brands like BMW, Volkswagen, and Audi, its automotive industry is among the most successful automotive industries in the world with a strong global presence.

5. United Kingdom

The United Kingdom is one of the strongest economies in Europe and even after Brexit, the economy continues to thrive. However, due to the impact of the COVID-19 pandemic, the country witnessed a negative GDP growth rate in 2020 leading to major economic losses. The conservative party has been in power in the UK since 2019 with Borris Johnson being the head of the government. It is notable that the conservative party promotes liberal economic policies that promote free-market economics along with privatization and deregulation.

Moving forward, the top contributing sectors in the UK economy include supermarket retail, banking industry, insurance, construction, and so on. The supermarket retail industry in the UK contributes the highest revenue worth more than USD 200 billion dollars as per IBIS World.

6. India

India is one of the most crucial emerging markets in the world with respect to global trade and commerce with great diversity in cultural dimensions. The country has great bilateral and multilateral relations with most top economies of the world that are vital to the economic growth of the country. India is also an imperative part of the BRICS economic block that is expected to dominate the global economy by the end of 2025 and the Indian government is promoting large-scale privatization and a free market economy to promote greater economic growth. Furthermore, agriculture is a key aspect of the Indian economy accounting for 18 percent of the country’s GDP as per Statista.

Besides, the key industries that drive the Indian economy include pharmaceutical industries, financial services, real estate, FMCG, textiles, and engineering.

7. France

Emmanuel Macron has been re-elected to power in France in the recently concluded presidential elections. The French government under Emmanuel Macron has an inclination to protectionist policies to encourage more and more French citizens to buy from French brands. Besides, Emmanuel Macron in his election campaigns also promoted economic policies aimed at pumping an exorbitant amount of money into tech industries including outer space, semiconductors, and so on. Besides, as we already know, France has a robust fashion industry and hence, it is famously known as a much sought-after fashion capital of the world.

In addition to fashion, the other key industries with respect to the French economy include energy, manufacturing, agriculture, technology, and transport.

8. Italy

As per OECD, the economy of Italy has done well to rebound from the aftermath of the COVID-19 pandemic, and the country is projected to grow at 4.6 percent and 2.6 percent in 2022 and 2023 respectively. A major reason for the recovery of the economy is the revamped fiscal policy of the country supporting quick recovery coupled with investments in alignment with the Generation EU Funds. Furthermore, the tourism sector, agriculture, manufacturing industry, and services sector make the key components of the Italian economy. Italy happens to be among the largest exporters of vehicle parts, toxins, and refined petroleum products to other European countries.

9. Canada

The incumbent government in Canada has proposed to raise taxes as an effective measure to address the issue of deficits. The re-elected Justin Trudeau government has committed to raising taxes on businesses and has approved a budget of USD 109 billion for additional measures over the course of the next five years. Further, the government has also committed to increasing the affordability of child care and homes. For a more elaborate understanding of how external factors affect trade and commerce in Canada, you can go through our extensive PESTLE Analysis of Canada.

Besides, the largest industries in Canada in terms of revenue generation include commercial banking, gasoline, and petroleum, supermarkets, new car dealers, insurance, and IT consulting.

10. South Korea

The newly elected President of South Korea, Yoon Suk-Yeol has propagated the idea of a free market economy and greater liberty in economic policies. Also, the new President has proposed the abandonment of the previous government’s economic policies that hindered a market economy. Yoon Suk-Yeol has also hinted that his government will enact privatization policies and will bring the private sector to the helm of the nation’s economy rather than the government playing the leading role.

Furthermore, the largest industries in South Korea that account for large shares of the country’s GDP include automobiles, consumer electronics, chemicals, telecommunications, and shipbuilding.

11. Russia

In the present scenario, Russia has suffered heavy economic losses in the big to sustain its invasion of Ukraine. As per Aljazeera, the Russian economy is expected to contract by 15 percent in 2022 as a result of the ongoing war with Ukraine. It is further projected that Russia’s invasion of Ukraine will undo 15 years of progress achieved by the Russian economy. However, despite the Russia-Ukraine conflict, as per Bloomberg, the Russian Ruble is the top-performing currency in 2022.

Speaking of the top industries in Russia, the service sector contributes more than 56 percent of the country’s GDP followed by the manufacturing sector accounting for 30 percent of the country’s GDP. Besides, another key sector of the Russian economy is agriculture. Besides, Russia’s defense manufacturing sector is also a key sector for the country’s economy as Russia is one of the largest exporters of defense equipment and weapons to other parts of the world. To validate, in 2021, the trade indicator values of Russian arms export was 864 million for aircraft exports and 432 million for armored vehicle exports.

12. Brazil

Brazil is another important emerging market in the world which also happens to be the largest economy in South America. However, the country suffered hefty economic losses in 2020 due to the COVID-19 outbreak as it remained one of the worst affected countries in the world. As per World Bank, the GDP of Brazil contracted by 4.1 percent in 2020.

However, the economy is expected to rebound given the increase in the prices of commodities. Also, Brazil’s economic growth in the post-pandemic era can be attributed to the hike in vaccination prices

Moreover, in April 2022, the inflation rate in Brazil reached a 26-year high with the inflation rate going beyond 12 percent as per Reuters. Also, in April, the consumer price index witnessed an increase of 1.06 percent. To continue, the Brazilian services sector is the most vital part of the country’s economy accounting for more than 65 percent of its GDP. Further, the other key sectors of the Brazilian economy include agriculture and industry.

13. Australia

Australia has a highly stable political and economic environment that supports a progressive economy. However, the economy of Australia was severely impacted by strict lockdowns and restrictions imposed in response to the COVID-19 pandemic. As per KPMG, the GDP of Australia is projected to grow at 3.7 percent in 2022 and 2 percent in 2023. Further, the inflation rate in Australia for the fiscal quarter ending in March was 3.7 percent and the CPI was 5.1 percent as per the Guardian. Further, Australia is constantly working on improving its economic cooperation with countries like the US and other leading economies of the world.

In fact, a meticulous PESTLE Analysis of Australia will further help you to understand the impact of various external factors on the business environment in the country that is crucial to its economic growth.

To add, the key economic sectors in Australia include services, mining, manufacturing, construction, and agriculture. To substantiate, the services sector accounted for 66 percent of the country’s GDP as per Statista while other industries accounted for 24.5 percent.

14. Spain

For 2022 and 2023, the GDP growth of Spain has been readjusted downwards to 4.1% and 3.3% respectively as per BBVA Research. Besides, enrolment in social security and spending through cards is on increase in Spain. However, the inflation rate is accelerating in Spain at a concerning rate which can lead to a potential downfall in the levels of consumption in the country. Also, the economy of Spain has been affected by the Ukraine-Russia conflict as Spain is a major importer of maize from Ukraine. Also, Spain is an importer of energy solutions from Russia.

Besides, the key industries with respect to the economy of Spain include the tourism industry, the manufacturing industry, agriculture, and energy industries. As per Statista, in 2021, the tourism sector contributed 88.55 billion euros to the country’s GDP. Furthermore, the energy sector in Spain accounts for a little less than 3 percent of the country’s GDP.

15. Mexico

Mexico is the second largest economic economy in Latin America and the country has strong trade relations with other nations. Mexico has liberal trade policies and has free trade agreements with the US, Canada, Israel, Japan, and Panama. Also, Mexico is a part of NAFTA and EFTA and has free trade agreements with the European Union. All these factors give a major boost to the country’s economy. For its trade relations, the United States is the most important trade partner; around 80 percent of exports from Mexico goes to the United States. Also, as for the country’s imports, 47 percent of Mexico’s imports come from the US.

Moreover, Mexico has free trade agreements with Costa Rica, Nicaragua, Honduras, El Salvador, and Guatemala. Furthermore, Mexico is a key emerging market and the industrial sector contributes to 29.6 percent of the country’s gross domestic product, and the service sector accounts for around 60 percent of the nation’s GDP.

16. Indonesia

As per the World Bank, the GDP of Indonesia is forecasted to grow at 5.2 percent in 2022. The country’s economy is recovering through hiked commodity prices and effective fiscal policies that have been administered to help the economy revive from the downturn caused by the COVID-19 pandemic. Further, as per the Bank of Indonesia, the CPI inflation rate of Indonesia in March 2022 stood at 2.64 percent.

Furthermore, Indonesia has signed Free Trade Agreements with Iceland, Switzerland, Australia, Chile, and Norway. However, as per the International Trade Administration, the only FTA among these which is applicable yet is the FTA between Indonesia and Chile. Moreover, the key economic sectors in the country include the industrial sector and agriculture. The key industries in the country include electrical appliances, textiles, petroleum, and natural gas.

17. The Netherlands

The private consumption in the Netherlands is on the rise again after the effect of the COVID-19 pandemic and this increase in private consumption will drive economic advancement in the subsequent years. Besides, parallel to the recovery of the economy, the job vacancies are also increasing in the country and hence, the unemployment rate will witness a decline in the future. Private investment is also increasing in the country in the post-pandemic era however, the pace of increase in private investment remains slow. Besides, the CPI inflation rate of the Netherlands is higher than the average inflation rate in Europe. To validate, the Dutch economy’s CPI inflation rate remained at 9.6 in April 2022.

Probing further, the major industries in the Netherlands that serve as the foundation of economic growth include IT, chemicals, life sciences, energy, metallurgy, agriculture, and R&D The market for renewable energy in the Netherlands is projected to grow at a CAGR of 7.34 percent between 2022 and 2027 making the renewable energy sector one of the most crucial sectors in the country’s economy.

18. Switzerland

It is notable that Switzerland has one of the highest per capita GDPs in the world if not the highest. The per capita GDP of Switzerland is in fact, much higher than that of the US and China. A thriving service sector is constantly adding immense value to the economy of Switzerland making it one of the most competitive economies in the world. Further, the Swiss economy is majorly export-oriented and the major share of the country’s exports is catered to by medium and small enterprises in the country. Small and medium enterprises are often referred to as the lifeblood of the country’s economy.

To continue, the burden of public debt is relatively much lower on the Swiss economy as compared to other countries despite the economic downturn during the pandemic. This can be largely attributed to the capping on public spending during the pandemic. Also, competitive taxation policies make Switzerland an ideal location for multinational corporations which contributes immensely to the country’s economy. Also, among European countries, Switzerland has the lowest value-added tax (VAT) rates.

Moreover, Switzerland has cordial trade relations with European nations as well as Asian countries. The service sector in the country accounts for around 75 percent of the national GDP followed by the industrial sector with a share of approximately 25 percent. The share of agriculture in the country’s GDP remains less than 1 percent.

19. Turkey

As per the World Bank, Turkey’s economy grew the fastest in 2021 among G20 nations with a growth of 11 percent. Cuts in interest rates helped the country to stimulate demand and hence helped in the normalization of economic activities contributing to growth. However, the rising price inflation for food and energy remains a major economic uncertainty for the country. As per the World Bank, in 2021, the inflation rate in the country rose to an all-time high of 61 percent in March 2022.

As of now, the annual inflation rate in the country is inching closer to 70 percent. Consumer prices have also risen by more than 69 percent making even the most essential supplies unaffordable for the common people. In the near future, if the inflation rate remains uncontrolled, it could lead to a major economic downfall for the country disrupting all aspects of economic prosperity including the cost of living, borrowing, mortgages, and so on.

Also, the country’s economy has been impacted negatively by the repercussions of the ongoing Russia-Ukraine conflict. To elaborate, Turkey has close bilateral ties with Russia and Ukraine and the conflict has impacted Turkey’s trade of energy, construction activities, and agricultural produce.

20. Saudi Arabia

As per the World Bank, the economy of Saudi Arabia is projected to grow at 7 percent in 2022. Further, the country has enacted tight fiscal and monetary policies in the medium run but despite that, private consumption, income from religious tourism, and domestic capital spending are expected to witness a rise fueling positive economic growth. Further, as a consequence of tight monetary policies, the inflation rate is anticipated to slow down and remain close to 2 percent.

Also, Saudi Arabia is a part of the OPEC block and its economy is largely dependent on the oil sector. In fact, Saudi Arabia is the largest petroleum exporter in the world.

Another positive sign for the economy is that the non-oil sector in Saudi Arabia is also anticipated to grow at 4 percent in 2022. The other salient industries in Saudi Arabia besides oil and petroleum are the petrochemicals industry, ammonia industry, and organic chemicals industry. The major part of the country’s income comes from the services sector (56.2 percent) followed by the Industrial sector (41.3 percent) while manufacturing accounts for 12.9 percent as per data.

21. Poland

Poland happens to be the biggest economy in Central Europe. On the contrary, ever since the inception of the Ukraine-Russia conflict, the economy of Poland has been severely impacted and the country has seen a major influx of migrants from Ukraine. In accordance with the World Bank, more than 2.3 million refugees have sought asylum in Poland.

However, a large influx of migrants may also work positively to help the country deal with an acute shortage of labor across industries. Besides, inflation is rising in Poland, and in 2022, the average inflation rate is projected at 7.4 percent. Higher inflation can have negative repercussions in terms of decreased purchasing power and disruption of economic activities.

To augment, the refined petrol industry, video display industry, and automotive parts industry are the key economic sectors that propel the country’s economy.

22. Sweden

In accordance with OECD, the Swedish economy is anticipated to grow at 3.4 percent in 2022 followed by a growth rate of 1.6 percent in the subsequent year (2023). The unemployment rate in the country is declining and this factor coupled with increasing wages is giving a greater stimulus to demand.

Further, the inflation rate in the country is almost stable and is anticipated to remain around 2 percent. The Swedish government has proposed labor market reforms that will enhance the economic progress of the country in terms of employment scenarios.

Moreover, the services sector in Sweden accounts for 66.14 percent of the GDP followed by the industrial sector with a GDP share of 21 percent as per Statista. The share of agriculture in the country’s GDP in 2020 remained less than 2 percent.

23. Belgium

The economy of Belgium is projected to grow at a rate of 3.2 percent in 2022 by the OECD. Belgium is on the right track to recovering from the economic losses in the pandemic era and the key drivers of its economic recovery include increased private consumption and enhanced business investment.

However, in 2022, the unemployment rate in the country is projected to peak and reach 6.6 percent. Also, the country’s economy faces a challenge in terms of skill deficits in the workforce and a shortage of labor. The skill gap and labor shortage scenarios can affect the economic growth of the country.

Going forward, the services sector's share in the country’s GDP was almost 70 percent in 2020 followed by industries that accounted for a little over 19 percent. Speaking of agriculture, the contribution of the sector to the country’s GDP was 0.64 percent. Besides, the major driving industries of the country’s economy include metallurgy, chemicals, paper manufacturing, food processing industries, and so on.

24. Thailand

Thailand’s economic boom is one of the most interesting stories of rampant economic growth in the contemporary world. In less than a decade, the country has gone on to become an upper-middle-income nation from being a low-income country. However, as per the World Bank, the economy of Thailand contracted by 6.2 percent in 2020 as a direct result of the COVID-19 pandemic. In response to the economic and social vulnerabilities posed by the pandemic, Thailand allocated 9 percent of its GDP to cash transfers, medical supplies, and economic rehabilitation.

In the current scenario, the purchasing power of people in Thailand is affected by the constantly rising prices of food commodities and energy. This rise in prices will have a direct impact on the levels of private consumption in the country.

Probing further, the biggest industries with regard to the economy of Thailand include tourism, electronics, and agriculture. In fact, the tourism industry is the largest contributor to the country’s GDP with its GDP share in excess of 15 percent.

25. Austria

The economy of Austria has shown an impressive rebound primarily due to the increase in private consumer spending in the country. However, the economy still remains vulnerable due to supply bottlenecks and acute labor shortages. The Inflation rate is moderate in the country and the per capita GDP is much higher than in other countries.

Furthermore, the service sector in Austria employs more than 70 percent of the country’s working population with its GDP share being 62.8 percent. Besides, the industrial sector’s contribution to the country’s GDP is 25 percent, and it employs around one-fourth of the country’s workforce.

As per the world bank, the agricultural sector in Austria employs around 4 percent of the country’s workforce and its contribution to GDP is 1.2 percent. The largest industries in Austria by revenue include the automotive industry, paper industry, food and beverages industry, engineering industry, and electrical & electronics industry.

26. Nigeria

As per the World Bank, the number of Nigerian citizens living below the international poverty line is anticipated to increase by 12 million between 2019 and 2023. The economy is massively dependent on oil and oil exports of Nigeria account for 80 percent of its total exports. Also, oil is the source of more than 50 percent of government revenue in the country.

In the face of the COVID-19 pandemic, the country witnessed its worst economic recession in almost two decades and the global downfall in oil prices caused large-scale economic instability in the country.

The government has taken various remedial measures to compensate for the losses brought by the pandemic. These measures include harmonization of exchange rates, elimination of subsidies on gasoline, and cutbacks on non-essential expenses.

27. Ireland

In Ireland, projections hint at robust domestic investments in the immediate future which will give a boost to consumer spending in the country. OECD forecasts that the economy of Ireland will grow at 5.7 percent in 2022. Moreover, as evident, Ireland is among the leading nations in terms of per capita GDP. In fact, the per capita GDP of Ireland is roughly 60 percent higher than other member states in the OECD. Also, the country has low income inequalities in comparison to most nations.

Delving deeper, the key industries driving the country’s economic growth include business services, cybersecurity, sustainable energy, pharmaceuticals, financial services, engineering, and so on.

28. Israel

As per OECD, the GDP of Israel is estimated to grow at 4.9 percent in 2022 and the economy is in recovery mode after setbacks resulting from the COVID-19 pandemic. Domestic demand is on the rise yet again in the country as a result of an enhanced labor market and settling of economic uncertainty. However, the income inequality in the country remains much higher than in most advanced economies of the world.

Speaking of inflation, the inflation rate in Israel is stagnant at around 2 percent while the unemployment rate is 5 percent as per World Bank data. Further, the technology sector of the country is the fastest-growing sector making valuable additions to the GDP of the country. Other significant industries with respect to the economy of Israel include transportation, tourism, manufacturing, agriculture, and the diamond industry.

29. Argentina

Argentina is one of the most important economies in Latin America and has an abundance of natural resources linked to agriculture and energy production. As per the World Bank, the economy of Argentina contracted by 9.9 percent in 2020 in the face of the challenges posed by the pandemic. However, Argentina has shown signs of an economic recovery far better than anticipated.

To elucidate, by the end of 2021, the economy of the country was 5 percent above the pre-pandemic levels. Increased taxes on large fortunes and higher monetary collections from the rights of exports have been two fundamental drivers of the country’s economic revival after the pandemic.

To add, in 2020, the services sector in Argentina constituted 54.6 percent of the country’s GDP followed by the Industrial sector which accounted for 23 percent of the national GDP. The contribution of agriculture to the GDP of Argentina remained a little under 6 percent.

30. Egypt

Reforms in the energy sector have helped the country to enhance electricity supply and boost gas exports hence, driving economic growth. Also, the reforms have opened the energy market to widespread privatization and increased investments in renewable energy production.

However, economic challenges like an increased government debt to GDP ratio, non-performing oil exports, and inadequate FDI contribute to macroeconomic imbalances in the country. Another key challenge for the economy is job creation in the formal sector. Besides, Egypt is continuing its economic policies aimed at financial consolidation.

Probing further, in 2020, as per Statista, the agriculture sector’s share in the country’s GDP remained at 11.5 percent. The highest share of GDP was accounted for by the services sector with a share of 51.7 percent followed by the industrial sector accounting for 32 percent of the country’s GDP.

31. Norway

Norway has a per capita GDP value much higher than most nations in the contemporary world. Further, Norway turned out to be one of the most successful countries in the world in restricting the economic and social impact of the COVID-19 pandemic. As per OECD, in 2022, the GDP of the country is projected to grow at 4.2 percent.

Consumption growth is forecasted to remain high and the employment rate in the country is now well above the pre-pandemic level which implies that more people will now have disposable income to support economic activities. On the contrary, an aging population and a sense of urgency to address climate change issues pose a major economic challenge to the country.

Besides, the petroleum industry is the most vital industry with respect to the country’s economic progress as petroleum exports have a 46 percent share of Norway’s revenue from exports. The petroleum industry is followed by the manufacturing industry with a 30 percent share in the export revenues of the country. The remaining proportion of export revenues is accounted for by the services industry in Norway.

32. Philippines

As a consequence of increased public spending, economic reforms, and an improved domestic environment, the economy of the Philippines is showing positive trends of rebound from the economic aftermath of the COVID-19 pandemic. However, high inflation and geopolitical disruptions along with the ongoing supply chain issues remain major concerns for the country’s economy.

Proceeding further, tourism, manufacturing, and construction remain the most significant industries contributing immensely to the country’s economic growth. As per WTTC, in the pre-pandemic era, the contribution of the travel and tourism industry to the country’s GDP was 22.5 percent.

However, after travel restrictions were imposed to curb the spread of the pandemic, the travel and tourism sector’s contribution to the GDP was dramatically reduced to 4.8 percent.

33. UAE

As per the International Monetary Fund, the GDP of the UAE is forecasted to grow at 4.2 percent in 2022 while the inflation rate (annual percentage change) is projected to remain at 3.7 percent. The country has a booming oil sector that will drive a massive economic rebound in the country after the economic losses brought about by the pandemic.

Another positive development for the country’s economy is that as a consequence of reforms by the UAE government, the non-oil sector in the country is also showing signs of recovery. Additionally, the real estate sector and tourism sector in the UAE are salient contributors to the country’s GDP.

Probing further, UAE is a part of OPEC and 30 percent of the country’s gross domestic product is dependent on oil and gas. Besides, as per the official website of the UAE government, the country has signed free trade agreements with a large number of countries including Singapore, New Zealand, and EFTA countries.

The government is further hopeful of signing more CGC free trade agreements with other emerging economies of the world including India, Japan, Australia, Turkey, and the Mercosur countries. These FTAs will have a significant role to play in enhancing the economic progress of the country through larger volumes of trade and commerce.

34. Denmark

In the post-pandemic era, the Danish economy has witnessed a massive increase in private consumption which has helped the economy revive at an impressive rate. Besides, the employment rate in Denmark has exceeded the pre-pandemic levels as per OECD which implies that the disposable income of the citizens of Denmark is increasing and there would be more circulation of money in the economy.

Besides, the income inequality in Denmark is much lower than most advanced economies in the world. Furthermore, as per Statista, the inflation rate in Denmark is projected to average 3.8 percent in 2022.

Moving forward, the key industries that propel the Danish economy include agriculture, energy production, tourism and transportation. The country is committed to bringing a swift shift to renewable energy as it has set an ambitious target of cutting down emissions by 70 percent at the end of 2030. Having said that, the renewable energy industry in the country will be among the fastest growing industries in the years to come. Moreover, as per Statista, there are more than 168,000 employees in the tourism sector of Denmark and the country has over 20000 tourist establishments.

35. Hong Kong

Hong Kong is referred to as a special administrative region under the supervision of the People’s Republic of China and has an open market economy. As evident from the table above, the country’s major revenue comes from the exports of goods and services with its GDP share of exports being the highest. The cumulative value of Hong Kong’s imports and exports is 376 percent of the country’s GDP as per estimates. Clearly, the country is succeeding in its SMART Goals of maintaining and handsome balance of trade.

However, in the current scenario, the high rate of inflation in the country has driven the central bank to enact a tighter monetary policy. In the wake of the Ukraine-Russia conflict, the prices of food commodities and energy are on a constant rise and that puts extreme pressure on the economy of Hong Kong.

The top exports of Hong Kong include office supplies and machinery, non-ferrous metals, automated data processing equipment, sound recording apparatus etcetera as per Trading Economics. Besides, logistics, financial services, tourism, and professional services are the four most significant industries in Hong Kong in terms of their GDP share.

36. Singapore

Singapore is a high income nation as clearly visible from the high value of per capita GDP. To add, Singapore is one of the most open economies in the world making it an ideal business destination for large foreign investments. As per IMF, Singapore is among the top 10 recipients of FDI at the global level.

Probing further, although the debt to GDP ratio of Singapore is 131.9 percent representing high foreign debt, the country still remains a net creditor to other countries as per the International Monetary Fund. Further, in 2022, the inflation rate is pegged at 1.46 percent as per Statista.

Proceeding further, the manufacturing sector is the most crucial driver of Singapore’s economy and the key industries include biomedical sciences, chemical engineering, electronics, logistics and transportation. After the manufacturing sector, the financial services sector in the country is another large contributor to Singapore’s GDP.

37. Malaysia

With a trade to GDP ratio of over 130 percent as per the World Bank, Malaysia is yet another significant open economy in the world. However, as per the 2020 estimates, more than 5 percent of households in the country have plunged into absolute poverty as a consequence of the COVID-19 outbreak.

The country has large income disparities as compared to other countries in East Asia. The government is working on a targeted economic approach to support the vulnerable and poor sections of the population. In the Human Capital Index of the World Bank, Malaysia ranks 55.

Moreover, the biggest industries in Malaysia by revenue are rubber and palm oil industries, petroleum and natural gas, pharmaceuticals, manufacturing, and light manufacturing industries. As a matter of fact, the oil and gas industry accounts for 35 percent of the Malaysian government’s revenue as per globalEDGE.

38. South Africa

South Africa is a dual economy with large income disparities. In fact, the income inequalities in South Africa are among the largest in the world. Also, the massive hike in unemployment remains a key development challenge for the country. Further, the economic recovery of the country in the post-pandemic era was facilitated by higher commodity prices and increased global demand.

Also, a revival of domestic economic activities has resulted in a favorable economic rebound. In accordance with the World Bank, the South African GDP is projected to grow by 2.1 percent in 2022.

Speaking of the main industries, South Africa is one of the largest importers of minerals. In addition, mining, automotive assembly, machinery, and metalwork are the most important industries in the country that facilitate a major share of economic growth.

39. Bangladesh

In recent years, Bangladesh has emerged as a global manufacturing hub, especially for the garment and apparel industry. Bangladesh is a developing market economy and is among the most swiftly growing economies in the world in accordance with the World Bank. Bangladesh is second on the list of the world’s largest readymade garment exporters only behind China.

Over the past decades, Bangladesh has done exceptionally well to mitigate poverty levels and exhibit rampant development to achieve a lower-middle-income status from being an impoverished nation at the time of its independence in 1971.

The diversification of exports beyond readymade garments remains a major challenge for Bangladesh and the country also needs to address gaps in infrastructure to make its economic growth more viable in the long term.

As per Statista, in 2020, the agriculture sector in the country contributed a little over 12 percent to the country’s GDP while the industrial sector accounted for 29.5 percent. The largest share of GDP was accounted for by the services sector.

40. Colombia

Colombia’s economy remained impressively resilient to the economic challenges brought by the COVID-19 pandemic given the strong monetary and fiscal policies enacted by the government. Domestic demand is rebounding as a consequence of effective macroeconomic policies and OECD projects that the GDP of the country will grow at 5.5 percent in 2022.

Private consumption is the main facilitator of the country’s economic revival. However, the country has one of the highest income inequalities in Latin America and a highly informal labor market.

Assessing further, the most vital industries with respect to Colombia’s economy are steel and iron products, petrochemicals, mining, oil, beverages, textiles, coffee, cement, construction, and so on. In 2021, the revenue from coal mining in Colombia was 454.3 Colombian pesos as per Statista hence, signifying the contribution of the mining sector to the country’s economy.

41. Vietnam

Vietnam is a mixed economy highly controlled by the government with little control offered to the private sector in the country. Vietnam is one of the most flourishing economies in the world due to a major paradigm shift from agriculture to services and manufacturing.

In recent years, Vietnam has emerged as a manufacturing hub for the western countries which are increasingly relocating their factories from China to Vietnam given the abundance of affordable labor and trade benefits offered under free trade agreements. Vietnam is a part of the ASEAN countries and also a party to the Trans-Pacific Partnership.

Moreover, Vietnam has free trade agreements with the European Union and has trade pacts with India, China, New Zealand, Japan, and South Korea. Further, the largest industries in Vietnam are owned by the state and include paper manufacturing, plastics, textiles, telecommunications, tourism, and agriculture. As per the World Bank, agriculture held a 14.8 percent share of the country’s GDP in 2021.

42. Finland

Finland has a free market economy characterized by massive industrialization and openness to multilateral trade. The country has a small domestic market and hence, it relies heavily on the export of goods and services as a considerable fraction of its gross domestic product. Besides, the per capita GDP in Finland is high.

Private consumption in the country is expected to decline in the immediate future after the government spending on citizens’ support related to the pandemic will decrease. In addition, high inflation is another concern for the country’s economy.

Evaluating further, pharmaceutical industries, mining, energy production, chemical industries, and timber industries are the backbone of the country’s economy. Chemical industry products and forest industry products account for the largest share of the country’s exports. In 2020, the total value of Finland’s exports stood at 57,332 million Euros.

43. Pakistan

Pakistan has a mixed economy which is majorly spearheaded by the government. In the fourth fiscal quarter of 2021, the external debt of Pakistan increased to USD 130632 and the financial crisis seems to be deepening. For a long time, Pakistan has been on the brink of bankruptcy and has relied on bailouts from the International Monetary Fund.

Besides, Pakistan’s economy also has a high dependence on bailout packages from other countries primarily including China and Saudi Arabia. In 2021, Saudi Arabia announced that it will provide Pakistan with economic assistance worth USD 3 billion and will also finance refined petroleum products worth USD 1.2 billion.

Also, Pakistan is on the grey list of the Financial Action Task Force (FATF) for its involvement in terror financing and money laundering. Speaking of key sectors, Pakistan’s industrial sector accounts for more than 24 percent of its GDP. Apparel manufacturing and cotton textile industries are the highest contributing industries with respect to the country’s economy.

Another key sector of the economy is Agriculture which accounted for 23 percent of the country’s GDP in 2020 as per Statista. The largest sector in the country is the services sector which has a share of more than 50 percent of the country’s GDP.

44. Chile

In 2020, as a direct impact of the COVID-19 pandemic, Chile’s GDP declined by 6 percent, and the fiscal deficit of the country increased by 7.5 percent. This turned out to be the largest fiscal deficit in the country for decades. However, the country is steering towards an economic revival based on stimulus spending by the government and the rampant rollout of vaccination programs. The government initiated measures like cash transfers, tax deferrals, and boosting of liquidity to support the economy during the pandemic.

The industrial sector accounted for 31.4 percent of the country’s GDP in 2020 while the contribution of agriculture was 3.8 percent as per Statista. Like most other nations, the services sector accounted for the largest share of GDP at 56.4 percent.

45. Romania

OECD projects that the economy of Romania will grow at 4.5 percent in 2022 and 2023. Investments supported by funds from the EU will have a major role to play in the revival of the country’s economy after the fourth wave of the pandemic continued to create economic uncertainty in 2021. Further, the per capita GDP in Romania is low and around 48 percent lower than the average per capita GDP among OECD countries. The inflation rate in Romania is very high and it surpassed 10 percent in March 2022. The uncontrolled inflation rate can reduce economic activities and have serious repercussions for the economy.

Furthermore, the key industries with respect to the economy of Romania are timber, petroleum, light machinery, footwear, textiles, and metallurgy.

46. Czech Republic

Czech Republic is one of the most powerful economies in Eastern Europe. Further, the country’s economy is export-oriented and highly developed relative to other parts of Eastern Europe. In the current scenario, the manufacturing sector and exports of the country are under added burden due to the global supply chain crisis. Statista projects the inflation rate for 2022 at 8.9 percent which is expected to fall in 2023 and settle at 2 percent. As per OECD, the GDP of the Czech Republic is projected to grow at 3 percent.

Probing further, automotive, aviation, medical equipment, electronics, glass & ceramic, engineering, and pharmaceutical industries are the most vital industries in the country that drive economic progress.

47. Portugal

Portugal is a mixed economy largely driven by the service sector. The government has liberalized most areas of the economy and has privatized a large proportion of firms controlled by the state initially. Further, Portugal being a part of the European Union has strong trade relations with the western countries as well as the Asian economies. The country’s rebound after the economic crisis spilled by the pandemic is largely driven by the increase in domestic demand stimulated by EU funds.

As mentioned above, the country’s economy is largely dependent on the services sector. The tourism industry has emerged as one of the most imperative service-oriented industries in the country. Furthermore, the other key sectors include manufacturing, financial services, telecommunications, forestry, and fishing.

48. New Zealand

New Zealand did exceptionally well to curtail the spread and impacts of the COVID-19 pandemic. The country has an open economy driven by policies centered around the principles of a free market. The country has high efficiency in the services, manufacturing as well as agricultural sector. Besides, exports of goods and services account for roughly 30 percent of the real expenditure GDP of the country. OECD projects that the economy of New Zealand is anticipated to grow at 3.9 percent.

Agriculture, horticulture, and fisheries are among the key economic sectors in New Zealand. Moreover, the healthcare industry, real estate services, construction, financial services, education and training, and technical services are among the most important industries in the country with respect to GDP share.

49. Iran

The economy of Iran has three major subdivisions that include the state, cooperative, and private sectors. The country has a mixed economy with a large share of influence vested in the state. Further, agriculture, hydrocarbon, and the services sector make three distinct components of the country’s economy. Besides, as per the World Bank, Iran has the second most abundant natural gas reserves in the world and has the fourth most abundant crude oil reserves. A large part of the country’s revenue comes from oil exports and hence, the sole dependence of government revenue on oil exports makes the economy relatively volatile.

Also, the export of Iran’s oil and natural gas is affected by the economic sanctions imposed by the US in 2019. As per Statista, the real GDP of Iran is projected to grow at 2 percent in 2022 and the growth rate is forecasted to stay the same in 2023 as well.

50. Peru

The economic system of Peru is inclined toward a mixed-style economy that works on a balance between centralized economic planning and liberty to the private sector. Further, Peru has strong multilateral trade agreements with various developed and developing economies. To explain, Peru is a party to APEC, TPP, and the Andean Community.

The increase in public and private spending has helped the country to restore normalcy after the peaks of the COVID-19 pandemic subsided. The employment levels in the country have also returned to the levels in the pre-pandemic era. It is also notable that between 2020 and 2021 the country was successful in reducing its public debt from 8.9 percent to 2.6 percent as per the World Bank.

Speaking of the key industries in Peru, the key contributors to the country’s GDP include the mining industry, the manufacturing industry, the fishing industry, and tourism. To substantiate, as per OECD, the tourism sector in Peru contributes to almost 4 percent of the country’s GDP.

Furthermore, let us elucidate on the economic indicators that we have used to arrange countries by GDP to compile our list.

Key indicators for assessing countries’ economic performance

1. Gross Domestic Product (Current USD)

GDP by country is the most common indicator that is used to compare countries with respect to their economic performance. As per the definition by the World Bank, Gross Domestic Product at purchaser’s prices is the summation of the gross value (in monetary terms) that the resident producers in an economy add. Further, this gross value is inclusive of indirect product taxes but the subsidies are excluded from the value.

In simple terms, GDP can be understood as the monetary value of all goods and services (final) manufactured/produced in the country in a specific time period. Further, the goods and services purchased by consumers in a country include spending by the government, all private expenditures, investments, and net exports.

Furthermore, some key details with respect to the calculation of GDP are listed below.

• -Periodicity of calculation: Annually
• -Aggregation method: Gap filled total
• -Statistical concept: As mentioned above, GDP is the sum of value added by all producers in an economy. This value refers to the value of the gross output of producers and from this value, the valuation of intermediate goods and services consumed in the production of final goods is deducted. As per the US System of National Accounts, the added value is measured either at basic prices or producer prices.

To explain, when the added value is measured at basic prices, the net taxes on products are excluded. On the other hand, while calculating the added value at producer prices, the net taxes paid by producers are included but sales or value-added taxes are excluded. Moreover, in either case, the transport expenses invoiced by producers separately are excluded. Moreover, the total GDP is measured with respect to purchaser prices while the value added by different industries is usually measured in basic prices.

To continue, although GDP is a commonly used indicator of economic progress and performance, there are also some limitations to looking at GDP as the sole indicator to conclude the economic prosperity of a country. These limitations are explained below in an elaborate manner.

• Limitations and expectations of GDP as an indicator

GDP may not provide the most relevant overview of the aggregated economic performance, especially in a scenario where production is at the expense of the consumption of capital stock. Further, the estimation of GDP based on the approach of production is usually more credible and reliable than estimates based on expenditure. Besides, different countries have their own definitions, methodologies, and reporting standards that they use for GDP estimation.

Having said that, the quality of national accounts data is supervised by the World Bank and if needed, the World Bank makes the necessary adjustments for improving consistency as per international guidelines. However, in practical reality, large discrepancies still exist between how different nations calculate their GDP and the international standards.

Moreover, as it is evident, statistical institutions in developing countries are often subjected to limitations in the terms of resources, training, and expenses needed to create a credible and detailed account of national account statistics. Also, in many countries, there is a large share of unreported economic activities prevailing in the informal sector or secondary sector. For instance, in the developing nations of the world, a significant share of output from agriculture is not exchanged as a major part of the agricultural produce is consumed within the household.

2. Current account balance (as a percentage of GDP)

The current account balance of a country as a percentage of GDP is the sum total of net exports of products and services, the net primary income of a country, and the net secondary income. It is vital to note that the current account balance of a nation is a fundamental component of a country’s balance of payments. A negative value of the current account balance will imply that a country is in deficit and relies on net borrowing from other countries. On the contrary, a positive value of the current account balance implies that a country has surplus income or payments and is a net creditor to other countries.

Having said that, the current account balance as a percentage of GDP is a direct and clear indication of a country’s economic competitiveness at the international level.

• Periodicity of calculation: Annual

3. Annual GDP growth rate

The annual rate of GDP growth for a country represents the annual change in the gross domestic product of the country at market prices with respect to the local currency. The annual growth rate of GDP yields the difference in GDP of a country in two consecutive years as a proportion of the previous year’s GDP. For the calculation of the GDP growth rate, the aggregates are based on constant 2015 prices in US dollars and the least square method is applied. As mentioned above, GDP is the gross value that all resident producers in an economy add inclusive of product taxes while the subsidies are subtracted from the gross value. Further, the calculations are made without any deductions for the depreciation of fabricated assets or for the depletion of natural resources. Further, some more key details for the calculation of GDP growth rate are mentioned below.

• -Periodicity of calculation: Annually
• -Aggregation method: Weighted average
• -Statistical concept: The GDP growth rates and the related components are calculated as per the least-squares method and constant price data in terms of the local currency of an economy. Further, the constant price in USD is used for the calculation of regional and income group growth rates. The local currency series needs to be converted to constant USD by taking into account the exchange rate in the common year of reference.

Probing further, there are some essential limitations and exceptions with respect to GDP growth rate as an indicator of economic growth and performance. The same is explained in the ensuing section.

• Limitations and exceptions of GDP growth rate as an indicator

The double-deflection method for the calculation of value added requires detailed information with regard to the price structures of inputs and outputs. Further, in a large number of industries, the added value is extrapolated from the base year with the use of single volume indices of outputs or inputs. Having said that, in the service sector industries including government industries, the value added in terms of constant prices is imputed from labor inputs inclusive of real wages or the number of workers. Therefore, in the absence of well defined output measures, the estimation of growth in services remains complex and challenging.

Furthermore, with technological progress, there can be improvements in the processes linked to production and in the quality of goods and services in a consistent manner. When these improvements are not effectively accounted for, there can be distortion in the measures of value added and hence, the measures of economic growth of a country.

Consequently, where inputs are used for estimating output in the context of non market services, the technical progress that remains unmeasured can result in an underestimation of the volume of output. Along similar lines, the improvements in the quality of goods and services can lead to underestimation of the value of output and value added. Hence, such a scenario can lead to the underestimation of productivity and growth parallel to an overestimation of inflation rates.

To add, informal economic activities present another specific measurement problem especially in the case of developing economies of the world as a large share of economic activities remain unreported. For getting a complete overview of economic parameters and growth, it is essential to record household outputs for home use, informal markets sales, barter exchanges, illicit economic activities and intentionally unreported economic activities which are not included in the estimation of GDP growth rate. Besides, when nations rebase their national accounts, it can alter the measured growth rate leading to inconsistency issues in the data.

Countries update the weights designated to the components for a better reflection of current patterns pertaining to production and use of output and this is another limitation of GDP growth as an indicator. In this context, it is also notable that many developing nations have not rebased their nation accounts for a long period of time and the use of old base years can be misleading. To explain, when an outdated base year is taken, the implicit price and volume weights are progressively less useful and relevant.

Probing further, the rescaling of GDP and value added by the World Bank can cause large discrepancies between the rescaled GDP and the summation of rescaled components. To elucidate, upon rescaling, there are changes in the implicit weights used in regional and income group aggregates. Subsequently, the discrepancy is left unallocated and the weighted average of components’ growth rates does not match the GDP growth rate.

4. Purchasing power parity (in current international dollars)

In simple terms, purchasing power parity is the rate in accordance with which a nation’s currency needs to be converted to another currency for buying the same amount of goods and services in either country. PPP is an economic indicator used to compare the purchasing power of different national currencies relative to each other. Further, PPP enables the comparison of economic productivity and people’s standard of living across different countries. To add, the indicator of PPP provides GDP value expressed in current international dollars converted as per the purchasing power parity conversion factor.

Further details with respect to the calculation of purchasing power parity are given below

• -Periodicity of calculation: Annual
• -Aggregation method: Gap filled total
• -Statistical concept: As per the Balassa-Samuelson effect, countries with high income have high price levels while lower-income nations have lower price levels. Cross-country comparisons of GDP based on market exchange rate yield differences in economic outputs and prices. Subject to the differences in price levels, the economic size of nations with high income is inflated and the economic size of low-income countries gets depressed on the contrary. The cross-country comparisons of GDP at its expenditure components based on PPP only reflect differences in volume (economic outputs) and not prices. To explain, the purchasing power parities control for differences in price level across different countries. Having said that, the PPP-based comparison of countries reflects the real size of economies.

5. GDP per capita (in current USD)

Per capita GDP of a country is a crucial economic indicator that represents the per person share of a country’s economic output. In order to calculate the per capita GDP of a nation, the country’s GDP is divided by the total population of the country. Along with GDP being a crucial metric for gauging economic performance, per capita GDP is also used essentially by economists to evaluate the financial prosperity of a given country. In the most uncomplicated terms, per capita GDP is the total gross domestic product of a country divided by its midyear population. It is usually true that affluent nations have a high value of per capita GDP while in developing or underdeveloped countries, the per capita GDP is low and insufficient.

• Periodicity of calculation: Annual
• Aggregation Method: Weighted Average

6.Exports of goods and services (as a percentage of GDP)

Exports of goods and services as a percentage of GDP represent the value of the goods and market services that a country exports to other countries. To elucidate, the value of exported goods and services is inclusive of the values of merchandise, insurance, freight, transportation, royalties, license fees, and services that include communication, information, business, construction, and so on.

Moreover, further details with respect to the computation and implication of exports of goods and services as an economic indicator are listed below.

• Periodicity of calculation: Annual
• Aggregation Method: Weighted Average
• Statistical Concept: Expenditure side GDP consists of final household consumption expenses, general government final consumption expenses, gross capital formation, and the net exports of goods and services. To elaborate, the gross capital formation includes private and public investments in fixed assets, modifications in inventories, and net acquisitions of essential valuables. Further, net exports simply refer to the difference between a country’s exports and imports.

Probing further, there are also some drawbacks and exceptions related to the use of exports of goods and services as an economic indicator which need to be realized and acknowledged. These limitations and drawbacks are elucidated below.

• Limitations and exceptions of exports of goods and services as an indicator

Most countries compute their GDP using the production approach since the collection of production data is more convenient in comparison to spending data. Besides, most nations fail to estimate all the relevant components of national expenditures but rather derive main aggregates in an indirect manner using GDP relevant to the production approach as the control total. To add, the data with respect to the exports and imports of a country is compiled based on customs reports and data on the balance of payments.

Though the payments side data provides a reliable record of international transactions, the appropriate definitions, valuation methodologies, and timing used in the balance of payments may not be in coherence with the criterion of change of ownership. In the contemporary world of rampant globalization, this issue has become of greater significance and concern. The illegal transactions that occur in most nations are neither accounted for in the customs nor in the balance of payments. Further, unreported shuttle trade may further lead to distortion in trade statistics.