In this article, we will look at the 5 most powerful countries in the world by economy.
Global Economic Outlook
The United States of America, China and Germany are some of the most powerful countries in the world in terms of economy. Factors including strong GDP growth, low inflation rates, greater employment opportunities and strong investment determine a country’s economic power. In addition to these factors, the global global economic outlook also contributes to the economic performance of these countries. According to the April 2024 update from the International Monetary Fund (IMF), the world economy grew by 3.2% in 2023 and is forecast to continue growing at the same pace in 2024 and 2025. Advanced economies are expected to in the world witness a slight increase. in the growth rate and is forecast to grow by 1.7% in 2024, compared to a growth rate of 1.6% in 2023. On the other hand, the growth of emerging and developing economies is expected to slow modestly , from 4.3% in 2023 to 4.2% in 2024.
Global headline inflation is declining and was close to pre-pandemic levels at the end of 2023 for most economies. During the last quarter of 2023, global inflation was recorded at 2.3%, down from 9.5% in the second quarter of 2022, in a quarterly analysis. Although headline inflation in emerging and developing countries has also cooled since its peak of 13.7% in the first quarter of 2022, it is still considerably high and was recorded at 9.9% in the last quarter of 2023. The average rate of Inflation in developing countries is high due to uncontrolled inflation in some countries. For example, on May 3, Reuters reported that annual consumer price inflation in Turkey rose 69.8% in April, the increase was still below expectations, however, it was the highest since the end of 2022. Turkish Finance Minister Mehmet Simsek said that although inflation will peak in May, it will begin to decline sharply to be in line with the government’s forecast. If you want to read more about the world’s economies, you can look at 12 European countries with the best economies right now and 30 countries with the best economies in the world right now.
Some of the biggest companies in the most powerful economies
Microsoft Corporation (NASDAQ:MSFT) and Saudi Arabian Oil Company (TADAWUL:2222) are two of the major companies leading the global economy. Let’s discuss some updates from them.
On May 8, Microsoft Corporation (NASDAQ:MSFT) announced $3.3 billion in Wisconsin to strengthen artificial intelligence economic activity, innovation and job creation. The investment package is designed to upgrade southeastern Wisconsin as a cloud computing hub and will also lead to the construction of the nation’s first manufacturing-focused artificial innovation lab. Additionally, the initiative also aims to bridge the skills gap in the state and will help equip more than 100,000 residents with essential AI skills. United States President Joe Biden, together with Microsoft Corporation (NASDAQ:MSFT) President Brad Smith, announced this new investment package at Gateway Technical College.
Saudi Arabian Oil Company (TADAWUL:2222) is an integrated energy and chemical company headquartered in the Kingdom of Saudi Arabia with international operations. The company operates in the upstream and downstream segments and deals with exploration, development and production of hydrocarbon products and other related chemicals. On April 27, Saudi Arabian Oil Company (TADAWUL:2222) announced that it is exploring a joint venture in its Saudi Aramco Jubail Refinery Company with its Chinese partner Rongsheng Petrochemical Co., Ltd. Saudi Arabian Oil Company (TADAWUL:2222) recently signed a framework cooperation agreement that sees Rongsheng Petrochemical Co., Ltd. (SHE:002493) acquiring a 50% stake in Saudi Aramco Jubail Refinery Company. The agreement also lays the foundation for the development of expansion projects from liquids to chemicals at the refinery. Aramco Downstream Chairman Mohammed Y. Al Qahtani said this partnership is a step towards major geographic expansions and attracting investment in the Saudi downstream sector.
With that, let’s look at some of the most powerful countries in the world in terms of economy.
5 most powerful countries in the world by economy
Our Methodology
To create the list of the 5 most powerful countries in the world by economy, we based ourselves on four main economic indicators, including GDP at current prices, real GDP growth rates, GDP per capita (PPP) and growth rates of GDP per capita, all coming from the IMF. We used GDP at current prices as our main metric to rank countries. GDP is one of the most used individual measures to evaluate a country’s global economic activity and represents the total value of all final goods and services produced in a country during a year. We use recent data from 2024 for all of our indicators. The list is organized in ascending order of countries’ GDP.
5 most powerful countries in the world by economy
5. India
Current GDP prices (2024): $3.937 trillion
Real GDP growth rate (2024): 6.8%
GDP per capita (PPP) (2024): $10,120
GDP per capita growth rate (2024): 9.00%
India ranks 5th in our list of the 20 most powerful countries in the world in terms of economy. It is also one of the fastest growing economies in Asia. The country has a GDP of US$3.937 trillion, with a growth rate of 6.8%. Furthermore, the country’s GDP per capita is growing by 9.00% during 2024.
4. Japan
Current GDP Prices (2024): US$4.110 trillion
Real GDP growth rate (2024): 0.9%
GDP per capita (PPP) (2024): $54,180
GDP per capita growth rate (2024): 1.78%
Japan ranks 4th on our list of the most powerful countries in the world in terms of economy. It is an East Asian country with a population of 124.04 million in 2024. Japan’s GDP and GDP per capita are growing by 0.9% and 1.78% respectively during 2024.
3. Germany
Current GDP prices (2024): $4.591 trillion
Real GDP growth rate (2024): 0.2%
GDP per capita (PPP) (2024): $67,240
GDP per capita growth rate (2024): 6.08%
Germany is not only ranked as the third most powerful country in the world in terms of economy, but it is also one of the most innovative economies in Europe. The country is known for its high-tech exports and has a GDP of $4.491 billion in 2024.
2.China
Current GDP prices (2024): US$18.533 trillion
Real GDP growth rate (2024): 4.6%
GDP per capita (PPP) (2024): $25,020
GDP per capita growth rate (2024): 4.90%
China ranks second on our list of the most powerful countries in the world in terms of economy. The country has a GDP of 18.533 billion dollars, which will grow by 4.6% in 2024. Furthermore, China’s GDP per capita will grow by 4.90%.
1. United States
Current GDP prices (2024): US$28.781 trillion
Real GDP growth rate (2024): 2.7%
GDP per capita (PPP) (2024): $85,370
GDP per capita growth rate (2024): 3.30%
The United States is the most powerful country in the world in terms of economy. It is a huge country with a population of 337.12 million in 2024. Furthermore, the United States has a GDP of 28.781 billion dollars, which is growing at a rate of 2.7% during the current year.
These were the 5 most powerful countries in the world. If you want to know more about the most powerful countries, take a look at the 20 most powerful countries in the world.
