"GDP," representing Gross Domestic Product, serves as a pivotal indicator for assessing the economic status of countries worldwide. In the 2024 global GDP rankings, Japan has descended from the third to the fourth position. In this discourse, we shall delineate the latest global GDP standings alongside per capita GDP rankings.
What Does GDP (Gross Domestic Product) Signify?
"GDP" stands for "Gross Domestic Product," denoting the aggregate value added by goods and services produced within a nation during a specific period. In essence, this value added signifies profit. Hence, GDP elucidates the economic performance and condition of each country.
Latest 2024 World GDP Rankings
We shall elucidate the rankings based on the 2024 GDP data released by the International Monetary Fund (IMF).
We shall elucidate the rankings according to the 2024 GDP data as released by the International Monetary Fund (IMF):
1st - United States: $27,966,553 million
2nd - China: $18,560,013 million
3rd - Germany: $4,700,875 million
4th - Japan: $4,286,187 million
5th - India: $4,105,381 million
6th - England: $3,587,750 million
7th - France: $3,183,486 million
8th - Italy: $2,284,084 million
9th - Brazil: $2,265,117 million
10th - Canada: $2,238,568 million
11th - Mexico: $1,994,148 million
12th - Russian Federation: $1,904,336 million
13th - Republic of Korea: $1,784,805 million
14th - Australia: $1,685,665 million
15th - Spain: $1,676,539 million
16th - Indonesia: $1,542,366 million
17th - Turkey: $1,340,689 million
18th - Netherlands: $1,157,906 million
19th - Saudi Arabia: $1,109,510 million
20th - Switzerland: $977,947 million
21st - Poland: $880,055 million
22nd - Taiwan: $791,608 million
23rd - Belgium: $658,120 million
24th - Argentina: $632,629 million
25th - Ireland: $629,589 million
26th - Sweden: $620,712 million
27th - Norway: $567,740 million
28th - Austria: $552,339 million
29th - Thailand: $543,248 million
30th - Israel: $539,835 million
31st - United Arab Emirates: $536,829 million
32nd - Singapore: $520,973 million
33rd - Philippines: $475,947 million
34th - Vietnam: $469,672 million
35th - Malaysia: $465,541 million
36th - Bangladesh: $455,162 million
37th - Denmark: $431,248 million
38th - Hong Kong: $410,356 million
39th - South Africa: $401,466 million
40th - Nigeria: $394,935 million
The Trend of Leading Countries in Terms of GDP Rankings
1st Place: United States (GDP $27,966.55 billion)
As usual, the United States maintains its top position with a GDP of $27,966.55 billion. Compared to 2023, where the GDP was $26,854.6 billion, there's an increase of $1,120.9 billion. Despite previous expectations of an economic downturn in 2023, the U.S. economy has remained robust. The OECD predicts a 2.9% growth in the U.S. economy for 2024. Although the growth rate for 2023 is expected to slow to 3.1%, the U.S. remains a leading economic powerhouse.
2nd Place: China (GDP $18.56 trillion)
China ranks second with a GDP of $18.56 trillion. Compared to 2023, where the GDP was $19.3735 trillion, there's a decrease of $813.5 billion. Similar to the United States, China's economic growth for 2024 and 2025 is expected to be lower than in 2023. However, China's position as the second-largest economy in the world remains unshakeable.
3rd Place: Germany (GDP $4,700.88 billion)
Germany ranks third with a GDP of $4,700.88 billion. This is an increase of $392.0 billion compared to 2023, where the GDP was $4,308.8 billion. Germany is a country with a thriving manufacturing sector, including automobile manufacturers like Mercedes-Benz and BMW, some of which prioritize production within Germany. However, Germany also faces challenges such as rising energy prices.
Latest GDP Per Capita Ranking for 2024
We will now present the latest ranking of per capita GDP for the year 2024. Per capita GDP is calculated by dividing a country's GDP by its population, serving as an indicator of a country's average wealth.
The ranking of countries/regions by per capita GDP in 2024 is as follows:
- Luxembourg - $140,307
- Ireland - $117,979
- Switzerland - $110,246
- Norway - $102,459
- Singapore - $91,727
- Iceland - $87,865
- Qatar - $84,898
- United States - $83,062
- Denmark - $72,940
- Macao - $70,130
- Netherlands - $65,194
- Australia - $62,596
- San Marino - $61,492
- Austria - $60,594
- Sweden - $56,894
- Finland - $56,157
- Belgium - $56,084
- Germany - $56,036
- Canada - $55,527
- Hong Kong - $54,078
- Israel - $54,058
- England - $52,426
- United Arab Emirates - $52,406
- France - $48,222
- New Zealand - $47,222
- Andorra - $45,642
- Malta - $41,124
- Italy - $38,925
- Puerto Rico - $37,765
- Cyprus - $36,975
- Aruba - $36,958
- Brunei - $35,813
- Bahamas - $35,541
- Spain - $34,932
- Slovenia - $34,914
- South Korea - $34,653
- Japan - $34,554
- Taiwan - $34,046
- Saudi Arabia - $33,144
- Kuwait - $33,031
Trend of High Per Capita GDP Ranking Countries:
1st Place: Luxembourg (140,307 USD)
Luxembourg consistently ranks among the top in per capita GDP. Despite being a small country with a population of around 657,000, it is renowned as one of the wealthiest nations globally. Much of this can be attributed to the influence of cross-border workers from neighboring countries. As workers from other nations contribute to Luxembourg's economy, its GDP increases, leading to a higher per capita GDP due to population calculation within the country.
2nd Place: Ireland (117,979 USD)
Maintaining its second position, Ireland benefits from a high birth rate, substantial young labor force, and high productivity, contributing to its elevated per capita GDP.
3rd Place: Switzerland (110,246 USD)
Switzerland secures the third spot, rising from fourth in 2023. Despite being ranked 20th in terms of GDP, its per capita GDP ranks among the highest globally.
Japan Trends: Why Did Japan Fall to Fourth Place?
Japan, which had previously ranked third in the global GDP ranking, lost its position to Germany in 2024 at fourth ($4.2861 trillion), so why?
- Impact of a Weak Yen: The continuous weakening of the Japanese yen against the US dollar since 2023 has inevitably led to a decrease in Japan's total output when converted into US dollars.
- Sluggish Productivity: Unlike Germany, where prices have risen due to the Russian invasion of Ukraine but productivity remains strong, Japan has experienced sluggish productivity. Despite rising prices, Japan's wages have not increased proportionately, potentially leading to a decline in personal consumption and corporate investment.
- Potential Overtaking by India: India ranked fifth in the 2024 GDP ranking with a slight gap compared to Japan. If Japan's economic stagnation and yen depreciation trends continue, there is a possibility that India could surpass Japan and claim the fifth position in the 2025 ranking.
- Decline in Per Capita GDP Ranking: Japan's per capita GDP ranking has also fallen to 37th place, with a value of $34,554 in 2024, compared to $35,390 in 2023. While Japan is still considered one of the wealthiest countries globally, the declining ranking reflects concerns about its economic performance and international standing.
Overall, the concerns about Japan's economic recession and diminishing presence on the global stage have been exacerbated by its declining GDP and per capita GDP rankings. Despite past predictions of Japan becoming the world's leading economic power, the recent decline in rankings has raised apprehensions about Japan's future trajectory.
