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GDP ranking 2023 : Status of the world’s economic powers

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GDP ranking 2023 : Status of the world’s economic powers

Discover with Capmad the ranking of the world powers in 2023 based on the Gross Domestic Product (GDP). This overview highlights the richest countries in the world and those that dominate in Africa. A list dominated by major economic players.

GDP ranking of world powers’s criterias

Several criteria are generally used to determine the list of world powers. Nominal GDP remains the main indicator, representing the total value of all goods and services produced by a country over the course of a year. However, other important factors are taken into account to provide a more complete picture of global economic dynamics:

  • GDP growth is another crucial criterion. It enables to assess the speed at which a country’s economy is developing.
  • Inflation can also influence a country’s position in the rankings. High inflation can reduce a country’s purchasing power and thus its real wealth.
  • Trade, i.e. imports and exports of goods and services, is also a determining factor. A positive trade balance can indicate a strong economy.
  • Finally, military strength and political stability can also play a role in world power rankings, particularly in the case of countries with strong political influence.

Nominal GDP: An indicator of global wealth

Nominal GDP reflects the total value of goods and services produced by a country, without adjustment for inflation. This economic indicator is expressed in current dollars and is often used to compare economies at a given point in time.

According to the latest available data, the world’s total nominal GDP in 2023 is around 87,500 billion USD. The USA leads the way, closely followed by China.

However, this ranking does not take into account differences in purchasing power between countries. It is therefore necessary to take into account other indicators, such as GDP per capita, to get a more accurate picture of the real wealth of nations.

Top 10 global economic powers

The ranking of the world’s top ten economic powers in 2023, based on nominal GDP, is as follows:

  1. United States: 25,400 billion USD
  2. China: 21,643 billion USD
  3. Japan: 4,365 billion USD
  4. Germany: 4,120 billion USD
  5. India: 3,820 billion USD
  6. United Kingdom: 3,538 billion USD
  7. France: 2,854 billion USD
  8. Canada: 2,365 billion USD
  9. Russia: 2,240 billion USD
  10. Brazil: 2,100 billion USD
  11. These figures reflect the dominance of certain economies in the global economic landscape. However, they do not take into account internal disparities within countries, such as income inequality. Other indicators, such as GDP per capita, are needed to better understand the relative wealth of nations.

Particular view on GDP per capita in the rankings

GDP per capita provides a different perspective on the wealth of nations by dividing it by the size of the population. This gives an indication of average wealth per person, which is a more accurate measure of individual economic well-being. It is even more relevant for countries with large populations, where a high total GDP can mask low per capita wealth. For example, a country like India may have a high total GDP due to its large population, but a relatively low GDP per capita.

GDP per capita does not take into account income inequality within the population. So while it is a useful indicator of average wealth, it may not accurately reflect the distribution of wealth.

African economies in 2023 : Position

In 2023, the African economy will be distinguished by its diversity. Leading the way is Nigeria, with a GDP estimated by the IMF at 574 billion USD, making it the continent’s leading economy. South Africa, Egypt, Algeria and Angola follow, all among the African countries with the highest GDPs.

  • The Seychelles stands out as the richest African country in terms of GDP per capita, closely followed by Mauritius, Libya and Botswana.
  • In contrast, Liberia, the Central African Republic and Guinea-Bissau are the continent’s least wealthy countries.

The African GDP Ranking 2023 provides more details on the current state of African economies. This data, while relevant, does not take into account certain indicators such as GDP growth or government debt.

The richest countries in the world in 2023

In 2023, the world’s richest countries are the US, China, and Japan. Germany and India complete the top 5. Among the other countries in the top 10, the UK, France, Canada, Russia, and Brazil stand out for their economic performance.

Interestingly, the GDP growth for these countries ranges from 0.3 % to 6.2 % in 2023, with India experiencing the strongest growth.

Countries with the lowest GDP : Analysis and explanations

In 2023, several nations stand out for their particularly low GDP. Among them, oceanic microstates such as Tuvalu, Nauru, Kiribati, the Marshall Islands and Palau have the lowest GDPs on the planet.

These countries suffer from a number of structural constraints. Their small size, geographical isolation and dependence on international aid are factors that limit their ability to generate high GDP.

These economies are also often mono-sectoral, based on specific industries such as tourism or fishing, making them vulnerable to external economic shocks.

GDP is just one indicator of a country’s economic health. Other criteria such as standard of living, unemployment rate or income inequality can give a more accurate picture of the real economic situation.

The world’s leading power : A case study

By 2023, the United States will be the world’s leading power, with a nominal GDP of 25,400 billion USD. This economic performance is the result of several factors, including a diversified economy, strong technological innovation and a dynamic domestic market. US GDP growth is estimated at 2.1 % for 2023.

China, the world’s second-largest economy, despite growing faster than the USA (4.7 %), has a significant GDP gap with the USA. China owes its position to its gigantic domestic market and its export competitiveness. China and the USA alone will contribute almost 56 % of global GDP in 2023, reflecting their predominant economic weight on the international stage.

Outlook for world powers in 2024

According to forecasts, 2024 promises to be a year of change in the global power landscape. With global growth estimated at 3.1 % this year, some countries could see their rankings change.

  • Growth in emerging countries is expected to remain stable at 4.1 %, accelerating to 4.2 % in 2025. This could enable some of these countries to improve their position in the global GDP rankings.
  • In Europe, the situation is more complex, with a growth forecast at just 1.2 % in 2024. The difficult economic situation, coupled with high inflation and high interest rates, could hold back certain European powers.
  • As for the USA, its resilience could enable it to maintain its dominant position, despite a slowdown in growth.
  • In Asia, countries such as India could take advantage of strong growth to move up the rankings.
  • Finally, sub-Saharan Africa could see growth of 3.8 % in 2024. This could foster the emergence of new powers on the continent, according to the 2024 GDP growth forecasts for Africa.

All this data remains to be confirmed, as geopolitical uncertainties and monetary tightening could also influence the evolution of economic powers in 2024.

Source : https://donnees.banquemondiale.org/indicator/NY.GDP.MKTP.CD

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