The 10 biggest economies of the world drive most of the economic power as we see it today. While some states are stronger than others, it seems these economies excel in different areas. Some have a strong financial sector while others have excellent manufacturing capacity. Here are the 10 names you need to remember.
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10. Russia
Natural resources are the main strength of Russia. The country is the largest in the world and it has plenty of minerals, wood, and oil. But its overdependence on oil saw its economy shrink several times when oil prices dropped. Diversification seems to be the way for the country to grow faster.
9. Canada
Canada also owns vast territories with access to multiple natural resources including oil. However, the country is a step ahead in terms of diversification with an emphasis on manufacturing. The service industry is also constantly growing, at least until the current pandemic debuted.
8. France
France is one of the most important players in the production of food. It owns one-third of Europe’s agricultural land and it also has a strong chemical-production sector as well as a revitalized automotive manufacturing industry with players such as Renault and Peugeot gaining constant praises every year. The country also has access to further resources in its former colonies.
7. India
The service industry and the manufacturing industry are growing at promising rates in India. A growing middle class and a large population make India one of the best places to invest at the moment.
With a strong impact in the IT world which also seems to be improving, India can be ranked higher on the list in a few years if it continues its growth.
6. Brazil
Brazil’s economy is either growing or shrinking every year. While it’s a bit unstable, it still has large growth potential. Banking, mining, food processing, and retail are strong sectors in the South American country.
The energy sector is also one which could show new growth in Brazil. But the country is also one of the biggest steel producers in the world and it has a major role across the word’s construction industry.
5. Japan
Japan is struggling to come back after the 2018 recession and the earthquakes that devastated its manufacturing sector. Banking, real estate, and insurance work together for the gross economic profit of the country.
The automotive industry still shows signs of potential growth for domestic players such as Yamaha, Toyota, or Mitsubishi. But research and development investments by big players can also pay off over the following years.
Some of the biggest names in the industry include Panasonic, Olympus, Brother, Sony, Toshiba, Canon, Nikon, and Akai. All of these companies are based in Japan.
4. United Kingdom
Agriculture, construction (due to the housing shortage), transport, creative industries, and retail are strong sectors of economic impact in the United Kingdom. The high buying power of the British pound remains a force, even when compared against the US dollar or the EU’s Euro.
The country is expected to undergo economic recession due to the pandemic and due to the EU Brexit with major manufacturing and banking players already showing intentions of moving businesses.
The poverty segment of its population is also higher than those in the Nordic countries or France or Austria. The UK needs to quickly recover its service industry and its agricultural force together with building a stronger middle class to move higher up the list.
3. Germany
Germany’s economy is expected to shrink in the event of a second Covid-19 lockdown. However, its economy is still strong after a first lockdown. The manufacturing industry is strong as is the growing agricultural industry.
For those expecting Germany to be overtaken by France, there’s no reason for hope. Germany is investing in renewable energy and it tends to be a bit less centralized to the capital city as France is.
2. United States
Banking, healthcare, and agriculture are areas where the United States excels. Its IT innovation industry in Silicon Valley is still vastly superior in terms of income and terms of the revenue, it creates to other hubs around the world.
But retail can be one of the sectors where the US can overtake most other countries with plenty of growth room, especially in online shopping. However, the current social problems and the high impact of politics in the economy might prevent it from seeing vast improvements shortly.
1. China
A 5% economic growth is predicted for China in 2020. For a large economy, this is consistently impressive. The manufacturing industry is still the strongest in the world. Mining is also a strong sector together with transportation and telecommunications. China also has one of the fastest-growing economies in the luxury goods market.
The retail sector is seeing growth as the Chinese start to earn more. Tap water production and luxury chocolate sales are seeing vast growth across the country, opening it up for investment from some of the biggest international brands.
Chinese investments abroad also seem to be areas of considerable growth. If technological advancement such as with the 5G capabilities sees a political blockade, things are different when it comes to the Chinese investing in other countries.
The investments are diverse abroad. For example, China purchased Syngenta, a large company making agrochemicals in Switzerland. Investments in transportation in multiple African countries are also expected to grow.
Final words
The biggest economies in the world are now facing a steep decline in growth with the Covid-19 situation. The manufacturing sector and even agriculture can suffer. But retail seems to be the first area hit by the pandemic. Restaurants, coffee shops, and stores were among the first to be closed to protect the spread of the virus.
Furthermore, there are signs to show a second closure on businesses is expected in countries such as Spain or the United Kingdom. Those who can leverage the capacity to work from home such as those in the creative industries, in the financial sector, or the IT sectors can leverage this to their advantage.
