We have all heard the phrase “It is a powerful country” at least once, but not everyone understands what it means. A powerful country refers to a nation that frequently grabs the public’s attention, influences global economic trends, has strong armed forces, etc. This article will discuss which countries are in the top 10 most powerful ones in the world in 2022 and why.
Today, we will focus on GDP because it is one of the most accurate indicators of a country’s strong economy.
Gross Domestic Product or GDP measures the value of all goods and services produced in a given country within a specific time, and most of the time, a year. The GDP often expresses the size of the economy of any given nation.
GDP can be calculated using the following formula:
GDP = C + G + I + NX,
C = consumption;
G = government spending;
I = investment; and
NX = net exports.
You can find several ways to measure GDP:
- Nominal GDP involves using the currency market exchange rate to convert a country’s currency and local prices into US dollars.
- Purchasing Power Parity (PPP) entails adjusting currencies based on a basket of goods that can be purchased in those jurisdictions instead of currency exchange rates.
- GDP Growth represents the nominal GDP percentage growth rate per year in local prices and currencies, and it estimates how fast a country’s economy is growing.
- GDP per Capita: you divide nominal GDP by a country’s population instead of total economic output. GDP per capita measures how much a nation’s economy produces for each individual.
Top 10 countries by nominal GDP at current U.S. Dollar exchange rates
The countries below fall in the top ten list considering their Nominal GDP:
- The United States — 23.0 trillion.
- China — 17.7 trillion.
- Japan — 4.9 trillion.
- Germany — 4.2 trillion.
- The United Kingdom — 3.2 trillion.
- India — 3.2 trillion.
- France — 2.9 trillion.
- Italy — 2.1 trillion.
- Canada — 2.0 trillion.
- South Korea — 1.8 trillion.
% Share of the global economy
With a $23.0 trillion GDP, the United States represents about 25% of the world economy, which has changed considerably over the past 60 years. The sectors that contribute the most to the nation’s economy are finance, insurance, and real estate, followed by professional and business services and government.
In nominal terms, China’s GDP is currently hovering around $17.7 trillion and is second. Based on the output, it continues to be the biggest manufacturer in the world, producing a lot of steel, electronics, and robotics, among other things.
Germany has the biggest economy in Europe and exports about 20% of the automobiles in the world. In 2019, total trade accounted for almost 90% of the nation’s GDP.
#1. The United States
The United States ranks number one when it comes to the most powerful country in the world in 2022. This country is in the North American region and boasts a population of over 328,000,000 people, which is expected to rise in the coming years. It has 50 states, and its capital city is famous, Washington, DC.
This country runs the largest economy in the world, with a nominal GDP of $23.0 trillion and $69,287 per capita GDP.
Besides, its popular culture, as seen in music, movies, and television, has a significant global influence on society worldwide.
China ranks second after the United States in the top 10 most powerful countries in the world. This nation is in the Asian part of the world and occupies approximately 9.6 million square kilometers area of land. With a population of more than 1.4 billion, it is considered the most populous country in the world.
Since the 1978 implementation of reforms by the former leader Deng Xiaoping, China has experienced some of the world’s fastest major economic growth, and currently, its GDP is at $17.7 trillion.
China is the home of the world’s ancient civilization and is regarded as one of the cradles of civilization.
Japan is a nation in the East Asian region and occupies 377,915 square kilometers of land. The country has more than 6500 Islands, but four are considered the main, and it is surrounded by many mountains and wooded areas. Its population is over 126.2 million, who live an exemplary urban lifestyle.
Though the 2011 tsunami disaster and earthquake disrupted its economic activities, including manufacturing, Japan has hugely bounced back and now ranks third among the largest economies in the world.
The nation is one of the biggest producers of steel, electronics, and automobiles in the world. In terms of both employment and gross domestic product of $5.06 trillion, the service sector represents the largest portion of the economy.
Japan is renowned worldwide for its traditional arts, such as calligraphy, flower arranging, and tea ceremonies. The nation is also known for its unique sculptures, poetry, and gardens.
Germany is a country in Europe and is considered the most populous in the European Union, with over 83.1 million people. It only occupies 357,022 kilometers of land, and its capital city is Berlin.
Open-market capitalism with some social service guarantees is used in Germany’s social market economy. This country is a major importer and exporter of goods worldwide, and it has one of the largest economies in the world.
Services, which include sectors like telecommunications, healthcare, and tourism, make up the majority of the economy of this nation. Agriculture and industry are two additional important economic sectors. Germany’s nominal GDP is $4.2 trillion, and the country is endowed with the most skillful workforce.
#5. The United Kingdom
The UK is a highly developed country that has a significant impact on global economics, politics, science, and culture. This nation is located in Europe and covers 243,610 kilometers of land with approximately 66.8 million people. It is made up of the northern part of the island of Ireland, the island of Great Britain, which contains England, Wales, and Scotland.
UK’s nominal GDP is $3.2 trillion. London, the nation’s capital, is one of the most traveled cities in the world and a significant international financial hub. A larger service sector, which includes the banking and tourism sectors, drives the majority of the country’s economic growth. The manufacturing sector, which is still a sizable part of the British economy and is dominated by the automotive and aerospace sectors, set the pace for the industrial revolution.
This country is also home to the most famous universities in the world, including Oxford and Cambridge.
India established itself as the largest democracy in the world in 1947, when it gained independence from British colonial rule. Diverse cultures, religions, languages, and traditions enrich India.
This country is the seventh largest in the world by area and is located in South Asia. India is currently the second-most populous nation in the world, with a diverse racial and linguistic population.
India is currently prospering thanks to its rapid economic development and urbanization. By 2030, it is anticipated to have the third-largest economy in the world thanks to this growth.
India is developing into a global economic powerhouse while addressing issues like population growth and other social and environmental concerns. On this list, its nominal GDP of $3.2 trillion is low because of its huge population.
France has proven successful in securing its place among the world’s most powerful countries. This country makes up about one-fifth of the European Union’s total area and hosts a population of about 67.2 million.
France is a major industrial power in the fields of rail, automotive, and aerospace. Luxury items, insurance, beauty products, pharmaceutical drugs, power generation, defense, agricultural sectors, telecommunications companies, and hospitality are some additional significant industries. All these sectors make a great contribution to its GDP of $2.94 trillion.
The standard of living for French citizens is very high. It is one of the top tourist destinations in the world, drawing in close to 80 million visitors annually.
Italy is a nation in South-central Europe that is renowned for its cuisine and natural beauty. It is also home to Mt. Etna and Vesuvius, two of Europe’s tallest and most active volcanoes.
The economy and level of development in Italy differ significantly by region, with the north having a more advanced, industrial economy and the south having a less developed economy.
Due to ineffective domestic policies, Italy’s economy grew slowly for many years. Although still, its GDP of 2.1 trillion dollars is not so low.
Canada is one of the nations that draw the most immigrants due to its excellence in various metrics, including cultural influence, flexibility, entrepreneurship, social significance, and overall quality of life.
Canada has the ninth-largest economy in the world, and its current GDP is $1.99 trillion. The third-largest proven oil reserves in the world are in Canada, which also has a well-developed energy extraction industry. Canada’s manufacturing and service sectors are also impressive, and they are primarily based in urban areas close to the U.S. border.
#10. South Korea
South Korea has maintained its ranking among the most powerful countries for quite a long time. It occupies around 99,720 square kilometers of the Eastern Asian region and hosts close to 51.7 million people.
Though the country recently gained independence, it has gone miles economically, with its current GDP at $1.8 trillion. Since the 1960s, the country has experienced consistent growth and poverty reduction; as a result, it is currently the world’s seventh-largest exporter and 11th-largest economy.
The corporate offices of Samsung, Hyundai, and Kia, two of South Korea’s major automobile and technology exports, are located there.
Universal healthcare and compulsory education up to middle school are provided to locals, and enrolment rates are consistently 100%. Hence, this country comes in fourth as the most educated in the world.
What country has the strongest economy?
The United States is by far the world’s largest economy, with a GDP of $20.9 trillion. It is followed by China in second place with a GDP of 14.7 trillion USD. India is also far ahead in international comparison, and in the world ranking, it comes sixth after the UK.
What are the 10 largest countries in the world?
The concept of the largest country covers the largest area of the land first without considering other factors such as wealth and population.
Here is the list of the largest countries and their area:
- Russia — 17,098,242 km2.
- Canada — 9,984,670 km2.
- The United States — 9,826,675 km2.
- China — 9,596,961 km2.
- Brazil — 8,514,877 km2.
- Australia — 7,741,220 km2.
- India — 3,287,263 km2.
- Argentina — 2,780,400 km2.
- Kazakhstan — 2,724,900 km2.
- Algeria — 2,381,741 km2.
What are the top 5 largest economies?
We can know the top largest economies in the world using their GDP as provided by the World Bank report:
- The United States — 20.9 trillion.
- China — 14.7 trillion.
- Japan — 5.1 trillion.
- Germany — 3.9 trillion.
- The United Kingdom (UK) — 2.7 trillion.
The Bottom line
Most often, the GDP of an economy will determine the richness and power a country holds. Even though a country is endowed with resources that produce wealth, it is important to note that good leadership and management are what make it thrive both in power and richness.