You will benefit from having a basic understanding of various nations’ economies as you get ready to expand internationally.
Many companies expand internationally to gain access to larger talent pools, penetrate new markets, and diversify their workforces for improved business continuity.
Here are the top 10 richest economies of 2022 based on GDP (Gross Domestic Product), which is the most commonly used measure for the size of an economy.
1. United States of America (GDP–Nominal: $20.89 trillion)
The success of the United States is a result of various factors. It certainly helps to work in an environment that values effort and long hours. Decentralized government, top-tier research institutions, and enabling legal frameworks all play a role as well. The US will probably always rank among the top nations worldwide in terms of GDP.
GDP per Capita: $63,413 and PPP: $20.89 trillion
2. China (GDP – Nominal: $14.72 trillion)
Chinese GDP is currently estimated at $14.86 trillion, making it the second largest economy in the world and one of the fastest growing in the twenty-first century.
The Belt and Road Initiative, which effectively unifies China’s foreign and economic policies, has boosted support for using the Chinese Renminbi in settlements. The nation is taking on a more significant role in the world economy. It has been the main driver of world growth since the 2008 financial crisis. GDP per Capita: $10,434 and PPP: $17,204
3. Japan (GDP – Nominal: $5.06 trillion)
Nearly 98% of Japan’s land is made up of the four main islands: Honshu, Hokkaido, Shikoku, and Kyushu. It has the third-largest nominal GDP and fourth-largest purchasing power parity (PPP) economies in the world.
Japan is the world’s largest producer of electronic goods and the third-largest manufacturer of automobiles, and is regarded as one of the most innovative nations in the world. The nation typically enjoys a surplus in both annual trade and foreign investment. The highly educated and skilled workforce in the nation contributes significantly to organizational growth. Japan ranks among the top countries in terms of GDP thanks to all of these factors. GDP per Capita: $39,048 and PPP: $5.24 trillion.
4. Germany (GDP – Nominal: $3.85 trillion)
The fourth-largest GDP in the world is that of Germany. Exports and imports combined account for 86.9% of GDP. Germany is a country in Europe, and its service sectors—such as telecommunications, healthcare, and tourism—are the main economic engines there.
The country uses a social market economy that emphasizes the virtues of free enterprise while also guaranteeing a number of social services. Due to its technological know-how, highly developed infrastructure, and skilled labor force, the nation is ranked first in the world for entrepreneurship. GDP per Capita: $45,466, PPP: $4.45 trillion.
5. United Kingdom (GDP – Nominal: $2.76 trillion)
England, Wales, Scotland, and Northern Ireland make up the United Kingdom (UK), also referred to as the United Kingdom of Great Britain and Northern Ireland. In terms of GDP, it has the fifth-largest economy in the world and the second-largest in Europe. In both the World Bank’s Ease of Doing Business Rankings and the annual Global Competitiveness Reports, the UK holds a prominent position. GDP per Capita: $39,229, PPP: $2.98 trillion
6. India (GDP – Nominal: $2.66 trillion)
A federal democracy, the Republic of India is made up of 28 states and 8 union territories. It has the sixth-largest economy and the world’s biggest democracy. India’s manufacturing, technology, and service industries are thriving. Since 2014, the rate of FDI inflows into India has steadily increased as a result of the government implementing some significant policy changes to support this growth. India will be among the top nations by GDP in 2022 as a result.
There have been some strategic moves made to improve the business climate in India, including removing bottlenecks in important business sectors, lowering the minimum capital requirement, and streamlining the licensing procedure. GDP per Capita: $1,877, PPP: $8.68 trillion.
7. France (GDP – Nominal: $2.63 trillion)
The seventh-largest economy in the world is France. Due to its popularity as a travel destination, it has a booming tourism industry. Additionally, international trade is crucial to the country’s economy.
63% of the nation’s GDP is made up of imports and exports. Investors are encouraged by robust property rights protection and a functional regulatory framework. In the 2019 World Bank Ease of Doing Business index, France is ranked 32. 31 of the Fortune 500 companies are from this significant EU member, and there are foreign players in many different industries. GDP per Capita: $39,257, PPP: $2.95 trillion.
8. Italy (GDP – Nominal: $1.88 trillion)
The third-largest economy in the Eurozone and the eighth-largest by GDP is Italy. Italy is one of the most powerful nations in Europe, with a significant economy and membership in the Eurozone, EU, G7, OECD, and G20.
The growth of Italy’s diversified economy is being driven by the consumer goods sector. The expenditure component of GDP includes 17% of gross fixed capital formation, 19% of government spending, and 61% of household consumption. 30% of GDP is contributed by exports of goods and services, while 27% of GDP is added by imports. GDP per Capita: $30,657, PPP: $2.42 trillion.
9. Canada (GDP – Nominal: $1.64 trillion)
The economy of Canada is primarily service-based. For direct investments, the minimum amount is CAD 5 million, and for indirect investments, it is CAD 50 million. Since 1995, the nation has also played a significant role in the World Trade Organization (WTO).
Due to its bilateral and regional Free Trade Agreements, it also maintains extensive trading relations with numerous countries (FTAs). Canada is a popular investment destination due to its educated workforce, multiculturalism and multilingual coexistence, thriving economy, and government support for business establishment. GDP per Capita: $42,080, PPP: $1.81 trillion.
10. South Korea (GDP – Nominal: $1.63 trillion)
Up until the 1960s, South Korea was viewed as a developing nation. The country’s economy entered a period of rapid growth (about 10% annual growth for over 30 years) as a result of extensive economic reforms, also known as the Miracle of the Hangang River. South Korea, one of the most advanced and industrialized nations in the world, has a GDP of about $2 trillion today.
Education, innovation, and financial investment in R&D are all highly valued in South Korea. The workforce in the nation is highly skilled and makes a high median household income. The GDP of the nation is primarily composed of services (59%), followed by industry (38%), and agriculture (2%).
