Monday, February 17, 2020

Stats Gate

Trillion Dollar Economies In 2020: What’s Next?

The so-called trillion-dollar club, which includes economic giants the United States, Japan, Germany, and India, is the group of countries with a nominal gross domestic product (GDP) of $1 trillion or more.

Unsurprisingly, the undisputed leader of this bunch, the U.S., with a nominal GDP of $21.44 trillion, is the biggest economy in the world in 2020. Trailing closely behind is America’s arch-rival China. The Asian giant currently has a nominal GDP of $14.44 trillion in 2019, it makes up 16.38% of the global economy.

Trillion Dollar Economies: The sixteen largest economies in the world represent almost 78% of the global GDP of $86.31 billion, so it does matter these countries see eye to eye [on trade].

If we look even closer, the top 5 economies in terms of nominal gross domestic product (GDP) — the United States, China, Japan, Germany, and India — contribute a whopping 55 percent to the world’s GDP.

What’s Next?

The IMF sees the United States GDP at 2 percent in 2020 and will decline further to 1.7 percent in 2021. The United States economy is set to grow to $25.8 trillion by 2024 with its GDP per capita at rising to $76,252 from the current $65,111.

Based on 2019 figures, the size of China’s nominal GDP was lesser than that of the U.S. by around $7.3 trillion, the gap is expected to reduce to around $4.5 trillion by 2024. China is projected to grow at 6% in 2020, and by 5.8% in 2021. The unstoppable Goliath is on the path to become a $20 trillion economy by 2024.

The trillion-dollar club

Trillion Dollar Economies And Their Growth In 2020

RankCountryGDP (2019 Estimates in US$trillion)Projected Growth (2020)
1United States$21.44 trillion2%
2China$14.44 trillion6.0%
3Japan$5.15 trillion0.7%
4Germany$3.86 trillion1.1%
5India$2.94 trillion5.8%
6United Kingdom$2.74 trillion1.4%
7France$2.71 trillion1.3%
8Italy$1.99 trillion0.5%
9Brazil$1.85 trillion2.2%
10Canada$1.73 trillion1.8%
11Russia$1.649 trillion1.9%
12South Korea$1.63 trillion2.2%
13Spain$1.40 trillion1.6%
14Australia$1.38 trillion2.3%
15Mexico$1.27 trillion1.0%
16Indonesia$1.11 trillion5.1%

Japan contributes almost 6 percent of the global gross domestic product (GDP). Japan’s GDP touched $5 trillion in 2019 and is expected to grow at 0.7% in 2020. Japan’s economy is expected to expand to $6.26 billion by 2024 based on current growth estimates. Germany is projected to grow at 1.1% in 2020 and 1.4% in 2021, higher than 0.5% in 2019.

With a GDP of $2.94 trillion, India is the fifth-largest economy in the world and the third-largest economy in Asia. After a disappointing 2019, India’s economy is expected to expand by 5.8 percent in 2020 and 6.5 percent in 2021. India to become a $3.2 trillion economy in 2020 and reach $4.6 trillion by 2024.

By 2023-24, India and Germany would be very close to each other in terms of the size of the nominal gross domestic product (GDP), making it a close contest for the spot of the 4th-biggest world economy.

Anna Papadopoulos
Editor, writer, teacher, consultant. Advocate for plain language, journalism, free speech, and tolerance. Feminist. Based in Sydney, Australia.
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