The world's largest economiesThe economic strength of a country is determined by its gross domestic product (GDP). In other words, the amount of all income generated in the country from the sale of goods and services.
With a GDP of 20.9 trillion USD, the USA is by far the world's largest economy in this ranking for 2020. It is followed by China in 2nd place with a GDP of still 14,722.7 tn USD. Canada is also quite far ahead in the international comparison and could occupy the 9th place in this ranking.
▶ The richest countries in the world
▶ Average income in comparison
Biggest economies in 2020 by gross domestic product
|Rank||Country||GDP in billion $||GDP in $ per capita|
|28||United Arab Emirates||421.1||43,103|
Calculated differently: Economic strength per capitaLarge countries with many inhabitants naturally also have high sales and a correspondingly a high gross domestic product. A large but not populous country like Canada, with its current population of 38.0 million, has little chance of matching the combined economic output of 329.5 million US-Americans or 1.4 billion Chinese. However, if you compare the economic output per capita, the picture is suddenly completely different. The USA slips from its top position to 12th place at once. China, with 10,500 USD per inhabitant, only reaches 79th place. And right at the top are now Monaco (190,513 $), Liechtenstein (180,367 $), and the Bermudas width 117,098 $ per inhabitant. Canada moves from 9th to 28th place.
Gross domestic product or gross national product?The gross domestic product (GDP) is the sum of all revenues generated domestically within a year. It does not matter which nationality the respective person has. Thus, if a guest worker lives in a country, his or her economic performance is included in the GDP. On the other hand, GDP does not include services provided by nationals abroad.
In the case of gross national product (GNP), on the other hand, all income is deducted again that has subsequently flowed abroad. The services of guest workers are thus reallocated to the state in which the worker has his or her home country. In individual economic sectors, this is quite appropriate. However, if one evaluates the economic performance of a country, the country not only provides the workers, but also land, machines, innovations and sales markets. Last but not least, the income is usually also taxed there. Therefore, one takes the GDP.