Leading industrial nations are also often referred to as superpowers. After all, they have an extremely good economic performance and thus play a major role in determining world events. The ranking is determined every year, there are no surprises in the first places.
Being able to count yourself among the leading economic nations is something. Well-known economic and statistical institutes as well as experts deal regularly with the most important countries and publish corresponding data. They look at certain indicators, such as state structures, import and export, the performance of the infrastructures in the countries, competitiveness, economic growth and many more.
Ultimately, however, the decisive factor is the gross domestic product (GDP), from which the ranking of the largest industrial nations is derived. This means the current economic performance. It is always measured in US dollars.
There are also other terms used to describe the largest economies, such as the largest economies or superpowers. For many years, the USA has led the ranking of the world's largest industrial nations, followed by China.
How do European countries compare?
While the economic output of countries such as the USA and China is continuously increasing, that of the European Union has been declining since 2010. The information service of the German Economic Institute (IW) regularly determines a location index. This shows that there are fewer and fewer EU countries in the top positions. Most recently, only the Netherlands, Germany, Denmark and Sweden made it into the top 10 in the 2022 index. Overall, the IW still sees considerable uncertainties that could affect the economic situation. Which is why forecasts tend to be cautious.
NO 1: United States Largest Industrial Nations
The USA continues to build on a strong domestic market. This is mainly due to the fact that large corporations produce here, make a lot of money and employ people. These companies also make a major contribution to exports and international competitiveness. This economic potential provides the basis for resources for research and development. Precisely these two factors are crucial if countries want to take the lead in the global race. Military expenditures also make the difference: if American war equipment costs as much as other countries can allocate to their armaments budgets within a year, the differences quickly become apparent. Another important factor: The basic conditions for economic growth in the USA are good. In 2021, gross domestic product (GDP) was $22,996.08 billion.
NO 2: China Largest Industrial Nations
China's rise was almost rapid: in 2022, before the outbreak of the corona pandemic, the country's economic output was 43 times higher than in 1978. Even if China's GDP of 17,744.64 billion US dollars (figure from 2021) is still well below the of the USA, a clear and positive development of the People's Republic can be seen. Innovations are an example of this. China is now ahead of the game here. In 2021 there were almost 70,000 patent applications, the USA only managed around 60,000 in the same period. China has understood: there is no growth without investment. That is why the country is investing a lot of money in projects that are intended to contribute to growth, for example in the "New Silk Road", the banking sector is also growing, and military spending is also increasing.
NO 3: Japan Largest Industrial Nations
In times of geopolitical crises, Japan scores with economic stability. The state is also considered an innovative location for research and development. It also has a comparatively large local domestic market. However, Japan is facing similar challenges to Germany, for example: Skilled workers are very difficult to come by and the average age of the population is increasing. In 2021, the country reached a GDP of 4,932.56 billion US dollars.
NO 4: Germany Largest Industrial Nations
Germany's strengths consist primarily of a triad: innovative strength, export and a strong middle class. Not only are we the fourth largest economy in the world with a GDP of $4,262.77 billion (as of 2021), we are also the largest in the European Union (EU). Above all, the automotive industry, mechanical and plant engineering and the chemical industry contribute to the success. Another important factor is the very active and diverse start-up scene - Germany is a country for founders. Medium-sized companies are also often referred to as the backbone of the German economy. He is extraordinarily successful, numerous so-called hidden champions come from these ranks. In the coming years, economic policy in Germany is set to change: from the social to the social-ecological market economy. Climate protection will be a central component.
NO 5: Great Britain Largest Industrial Nations
Great Britain is struggling with a significant decline in economic output. This is also proven by the GDP of 3,187.63 billion US dollars (as of 2021). In addition to the corona pandemic, experts see the main reasons for this being the consequences of Brexit, high inflation, changing consumer spending and reluctance to invest. Trade fell sharply due to Brexit and has only recovered a little since then. The recent brisk change at the top of government will probably not help England to recover from the economic slump as quickly as possible.
NO 6: India Largest Industrial Nations
India is arguably one of the big winners. The country has significantly improved its economic growth within a few years. GDP was US$3,176.3 billion in 2021. It even competes with its former colonial ruler Great Britain. India is promoting itself to the world as a potential trading partner and attractive location for industrial production. The country is financially clever, as the energy deals with Russia show. At the same time, India is also struggling with higher commodity prices. The government is attempting to counteract inflation by tightening monetary policy and thus mitigate the consequences.
NO 7: France Largest Industrial Nations
France has shown itself to be quite resilient in the recent very difficult times. It shows a growth trend. The export industry largely reached the level before the outbreak of the corona pandemic and its consequences. However, the economy is suffering from rising energy prices and expensive electricity imports, which in some cases catapulted the country's foreign trade deficit to a record high. GDP was US$2,957.43 billion in 2021.
NO 8: Italy Largest Industrial Nations
Overall, Italy is one of the largest and most important industrial locations in Europe. The machine and plant industry is an important factor. These industries also support the strong export share. In 2021, Italy's GDP was $2,101.28 billion. Italy's economy was relatively stable in 2022 as well. But here, too, the consequences of the difficult global framework conditions had an impact at the end of 2022. The consequences: high costs for energy and raw materials, rising inflation, disrupted supply chains, low purchasing power and weaker demand abroad. Due to its positive development, exports gave the country some breathing space.
NO 9: Canada Largest Industrial Nations
Canada's economic development shows a downward trend. In 2021, the country's GDP was $1,988.34 billion. Experts expect the economy to weaken in 2023. Foreign trade has recently acted as a growth driver. Canada mainly exports petroleum and agricultural goods.
NO 10: South Korea Largest Industrial Nations
South Korea's economy grew by 4.1% in 2021 and ranked 10th with GDP of US$1,810.97 billion. Experts see the reason above all in good pandemic management and the strong, export-oriented sectors such as the semiconductor industry, which led the country back towards growth after the 2020 downturn. While South Korea will be affected by falling future demand for memory chips - the country's main export product - it is seeing higher demand for them in other sectors, such as shipbuilding, particularly for LNG ships.
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