The Trillion Dollar Economy Club
There may not be any individuals in the trillionaire club yet, but there are plenty of economies. Here is an overview of the world's trillion-dollar economies, which are countries whose GDP (gross domestic product) exceeds one trillion dollars. As of April 2022, there are 19 countries that fall into this category, making up 80.57% of the global GDP.
- The United States is the largest economy, with a GDP projected to be $25.35 trillion in 2022 and expected to cross the $30 trillion mark by 2027. This constitutes 25% of the worldwide GDP and its economy is driven by consumer spending which accounts for more than two-thirds of economic activity. The US has the highest GDP per capita of $76,027.04 among the trillion-dollar economies and the 8th highest globally.
- China, the second-largest economy, is expected to expand by 4.4% in 2022 with a GDP size of $19.91 trillion. This is equivalent to one-fifth of the worldwide GDP. China is the only major economy that witnessed growth, albeit at a slow rate of 2.2% in 2020, before it bounced back with 8.1% growth in 2021. The country has a GDP per capita of $14,096.24. Dubbed the ‘world factory’, China has been working on the Made in China 2025 initiative launched in 2015, and in November 2021, it unveiled its plan to accelerate smart manufacturing across industries. The plan is expected to add more than $9 trillion to China's GDP over the next five years, closing the gap with the US. According to the World Bank, China is an "upper middle-income" nation.
- Japan, the third-largest economy, is known for its advanced technology and innovation. The country ranks among the top global innovation hubs, with a high spending on research and development as a percentage of GDP at 3.59% in fiscal year 2020. The services sector is the largest contributor to Japan's economy, accounting for around 70% of its GDP. Japan's economy has been struggling with deflation for two decades before Shinzo Abe came to power in 2012, his policy package to revive the economy, popularly known as Abenomics, helped to improve the economic situation. In addition, the new regime in Japan has set a target for doubling the inward FDI stocks to 80 trillion yen by 2030. Japan has a GDP per capita of $39,243.37, which is relatively high among the trillion-dollar economies.
- Germany, the world's fourth-largest economy, is Europe's largest economy and known for its mighty manufacturing sector. Services is a key sector of its economy, contributing about 70% to its GDP. The country's economy is expected to expand by 2.1% and 2.7% in 2022 and 2023, respectively. The manufacturing sector is the backbone of Germany's economy, and the "Made in Germany" label is synonymous with excellence and innovation. Automobiles are the largest industry in Germany, but it also has a strong presence in machinery, chemicals, electronics, and medical technology. Germany is the fifth-largest robot market globally and has thousands of industrial robots utilized across its industries. Germany's economy was impacted by the COVID-19 pandemic, like most countries, but the country has been recovering well. Germany's GDP per capita is estimated at $51,103.98 for 2022 and is expected to rise to $64,378.27 by 2027.
- The United Kingdom is the fifth-largest economy in the world, with a projected GDP of $3.38 trillion in 2022. According to the IMF's projections, the UK will slide to the sixth spot by 2025 as it is expected to be overtaken by India. However, in terms of per capita income, the UK is expected to see an improvement. The UK has a diverse economy that is driven by multiple sectors such as services, manufacturing, and construction. London, the capital of the UK, is one of the leading financial centers in the world, and the UK is also known for its advanced technology and innovation. The country's economy experienced a contraction in 2020 due to the COVID-19 pandemic, but it has been recovering since then.
Other countries that make up the trillion-dollar economy club include India, Brazil, France, Italy, Canada, and others. Projections for the next few years suggest that Turkey, Switzerland, and Taiwan are expected to join the trillion-dollar club by 2026.
It is worth mentioning that the above figures are based on April 2022 estimates by the IMF, and actual figures might be different in reality because of the macroeconomic and political factors that are subject to change.
See the full list of the world's 19 trillion dollar economies at NASDAQ.