The Indian economy is the 12th largest in the world. That is, India’s gross domestic product stands at $1.171 trillion. However, in terms of purchasing power parity, India is the world’s fourth largest economy. Its GDP in purchasing power parity terms is at $3.092 trillion. These are the year 2007 figures, recently released by the World Bank. By definition, purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency’s purchasing power. India is the one of the world’s fastest growing economies, yet its annual per capita income remains quite low at $950, or about Rs 40,000. That puts India in the 160th spot. Incidentally, World Bank figures show that the world’s GDP is at $54.347 trillion. India accounts for just over 2 per cent of global GDP.
So which are the world’s largest economies?
1. United States
The American GDP is at $13.812 trillion, making it the world’s largest economy. It accounts for more than 25 per cent of the entire world’s GDP! In terms of purchasing power parity too, the United States is the world’s leading economy. However, its per capita income at $46, per year, pegs it at the 15th spot in the world.
Japan, with a GDP of $4.377 trillion, is the world’s second largest economy. However, in terms of purchasing power parity, Japan is ranked third by the World Bank. It’s GDP in PPP terms is $4.283 trillion. Japan’s per capita income (annual) is $37,670, making it the 25th highest in the world.
Germany is the world’s third largest, with its GDP at $3.297 trillion. But in PPP terms, Germany is the world’s fifth largest economy. It’s GDP in PPP terms is at $2.752 trillion. Its per capita income is the 23rd highest in the world, at $38,860.
China, the Asian giant, is the world’s fourth largest economy with a GDP of $3.281 trillion; but in purchasing power parity terms it ranks second at $7.055 trillion. It is the world’s fastest growing major economy and its giant strides have taken the world by a storm. Economists predict that over the next few decades, it could topple the US as the world’s largest economy. China’s per capita income, however, is still low at $2,630 per year.
5. United Kingdom
Britain is the world’s fifth largest economy. Its GDP is at $2.728 trillion. In purchasing power parity terms, the United Kingdom’s GDP stands at $2.082 trillion making it the seventh largest in the world. Britain is a rich nation. Its per capita income is at an impressive $42,740. That would rank it in the 19th spot.
The French GDP is at $2.563 trillion, making it the world’s sixth largest economy; but in terms of PPP, it is the world’s 8th largest (GDP in PPP terms, $2.054 trillion). The per capita income of the French at $38,500 makes them the 24th richest people in the world.
Italy’s GDP in absolute terms is at $2.107 trillion. That makes it the planet’s seventh largets economy. However, in purchasing power parity terms its GDP is at $1.780 trillion and its rank is 10th. Italians’ per capita income is the 30th highest in the world. It is $33,540.
Spain is the eighth largest economy with its GDP at $1.429 trillion. In purchasing power parity, however, it slips to the 11th spot ($1.373 trillion). With a per capita income of $29,450 per year, its people are the 36th richest in the world.
The Canadian GDP stands at $1.326 trillion, making it the world’s ninth largest economy. In PPP terms, however, it stands 14th in the world. Its GDP in PPP terms is at $1.178 trillion. Its people enjoy a comfortable life with a per capita income of $39,420, which is 22nd highest in the world.
The Brazilian economy too has been growing at a scorching pace. It is the world’s 10th largest economy with a GDP of $1.314 trillion. But in terms of purchasing power (GDP – $1.834 trillion), it is better placed at number 9. Amongst the emerging economies, it has one of the best per capita income figures — $5,910. This places it in the 85th spot .