In this article, we will discuss the 30 countries with the highest GDP in 2023. If you want to skip the detailed analysis, click 5 Countries with the Highest GDP in 2023.
Economic Outlook for 2024
The global economy is experiencing a tough time following the COVID-19 pandemic. Now, the economy is heading toward recovery while facing severe threats including the Russia-Ukraine war, the Middle East crises amid the ongoing bomb shelling on Gaza, and rising climate change risks, among others. In 2023 Asian economies and markets have collectively performed well relative to the rest of the global economies despite inflation headwinds and China’s property market crisis. The property market crisis in China has started to impact the global markets. On February 9, Bloomberg reported that Chinese investors and their creditors are putting their real estate holdings ‘For Sale’ across the globe as they are in dire need of raising cash amid the escalating property crisis in China. The Chinese real estate market is on the verge of offloading into a falling market. In addition, more than $1 trillion has been wiped off of office property values due to massive borrowing cost hikes worldwide, as per Starwood Capital Group Chairman Barry Sternlicht. In 2023, global commercial property deals plunged to the lowest level in a decade, with owners unwilling to sell properties at massive discounts.
Asia is considered the region with the highest growth potential for the 21st century. As we mentioned earlier in our article on the 25 fastest-growing economies in the world in 2023, the growth forecast for Asia is projected at 4.8% for 2024, while inflation in developing Asia is forecasted to drop to 3.5% in 2024 compared to 3.6% and 4.4% in 2022 and 2023, respectively. In 2024, the macro headwinds impacting Asian markets will likely subside. All eyes are on the US Fed making a final decision on easing its tightening policy. On February 26, CNBC reported that JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon believes that the market’s odds for a soft landing are 70% to 80%. He added that the market expectations for the US economy to experience a soft landing are too high. During the JPMorgan High Yield and Leveraged Finance Conference in Miami, Jamie Dimon said:
“It’s always a mistake to look at just the year. All these factors we talked about quantitative tightening, fiscal spending deficits, the geopolitics, those things may play out over multiple years. But they will play out and they will have an effect and in my mind, I’m just kind of cautious about everything.”
China remains a regional and global wild card for 2024 as its economy continues to find a way to sustain recovery following a serious crisis in the residential real estate market. The Euro area is expected to rebound slightly after a challenging 2023, facing high energy prices and tight monetary policy. Brazil and India have been among the top-performing economies with strong resilience. As we mentioned earlier in our article on the 50 richest countries in the world by GDP per capita in 2024, India is projected to grow at 6.5% in the financial year 2024. Africa follows Asia as the second fastest-growing region and it is projected to grow at an average rate of 3.8% in 2024 and 4.2% in 2025, which is above projected global averages.
Companies Driving the Largest Economies
NVIDIA Corporation (NASDAQ:NVDA), Li Auto, Inc. (NASDAQ:LI), and Reliance Industries Limited (NSE:RELIANCE) are some of the largest companies based out of leading economies in the world. These large multinational corporations have a huge impact on the economies where they operate.
NVIDIA Corporation (NASDAQ:NVDA) is one of the largest tech companies based out of the United States and is one of the best long-term tech stocks to buy as well. On February 21, NVIDIA Corporation (NASDAQ:NVDA) reported its earnings for the fourth quarter of fiscal 2024. The company posted a remarkable outcome, with earnings per share of $5.16, beating consensus estimates by $0.53. The revenue came in at $22.10 billion, surpassing estimates by $1.56 billion. NVIDIA Corporation (NASDAQ:NVDA) is making record breakthroughs through its data center business as AI becomes the biggest tool for the chipmaker. Here are some of the comments from the Q4 2024 earnings call:
“Q4 was another record quarter. Revenue of $22.1 billion was up 22% sequentially and up to 265% year-on-year and well above our outlook of $20 billion. For fiscal 2024, revenue was $60.9 billion and up 126% from the prior year. Starting with data center. Data center revenue for the fiscal 2024 year was $47.5 billion, more than tripling from the prior year. The world has reached the tipping point of new computing era. The $1 trillion installed base of data center infrastructure is rapidly transitioning from general-purpose to accelerated computing. As Moore’s Law slows while computing demand continues to skyrocket, companies may accelerate every workload possible to drive future improvement in performance, TCO, and energy efficiency.
At the same time, companies have started to build the next generation of modern data centers, what we refer to as AI factories, purpose-built to refine raw data and produce valuable intelligence in the era of generative AI. In the fourth quarter, data center revenue of $18.4 billion was a record, up 27% sequentially and up 409% year-over-year, driven by the NVIDIA Hopper GPU computing platform along with InfiniBand end-to-end networking. Compute revenue grew more than 5x and networking revenue tripled from last year. We are delighted that supply of Hopper architecture products is improving. Demand for Hopper remains very strong. We expect our next-generation products to be supply-constrained as demand far exceeds supply. Fourth quarter data center growth was driven by both training and inference of generative AI and large language models across a broad set of industries, use cases, and regions.”
Reliance Industries Limited (NSE:RELIANCE) is one of the largest multinational companies based out of India. On February 28, the company announced that its media subsidiary, Viacom 18 Media Private Limited, and The Walt Disney Company (NYSE:DIS) have signed definitive agreements to merge Viacom18 and Star India. The Walt Disney Company’s (NYSE:DIS) merger of its Star India service with Viacom18 is worth $8.50 billion. In addition, Reliance Industries Limited (NSE:RELIANCE) will invest nearly $1.4 billion into the new joint venture as part of its growth strategy.
Li Auto, Inc. (NASDAQ:LI) is one of the largest EV makers in China. On February 26, Li Auto, Inc. (NASDAQ:LI) announced its earnings for the fourth quarter of 2023. The company posted earnings per share of $0.59, beating estimates by $0.26. Li Auto, Inc. (NASDAQ:LI) reported $5.80 billion in revenue for Q4 2023, surpassing consensus estimates by $265 million. Li Auto, Inc. (NASDAQ:LI) has become the leading Chinese automotive company by market share. Here are some of the comments from the Q4 2023 earnings call:
“2023 was a year of accelerated growth for Li Auto. We delivered a total of 376,000 vehicles for the entire year, exceeding our target setting at the beginning — set at the beginning of 2023 and also making us the first emerging new energy automaker in China to exceed the 300,000 annual deliveries mark. Our total deliveries for the fourth quarter reached 131,805 vehicles, an increase of 184.6% year-over-year. In December, we reached another significant milestone of 50,000 monthly deliveries, setting a new record for Chinese premium car brands. According to China Automotive Technology and Research Centers insurance registration data in China’s NEV market of RMB200,000 and higher, Li Auto’s market share increased from 10.9% in Q1 2023 to 16.0% in Q4, making us a leading Chinese automotive brand by market share, the growth will continue in 2024.”
These were a few leading companies based out of some of the largest economies in the world. Now, let’s take a look at the countries with the highest GDP in 2023.
30 Countries with the Highest GDP in 2023
Our Methodology
To compile our list of the countries with the highest GDP in 2023, we shortlisted the top 30 countries with the highest GDP (PPP) in 2023. As a simple definition, PPP is calculated by subtracting price differences and nominal changes in the local currency and the US dollar. We have ranked the list in ascending order of GDP (PPP). The data was taken from the IMF database from 2023.
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30 Countries with the Highest GDP in 2023
30. Argentina
GDP (PPP): $1.24 Trillion
Argentina had a GDP of $1.24 trillion in 2023 and is one of the largest economies in Latin America. Argentina ranks 20th among the countries with the highest GDP in 2023.
29. Philippines
GDP (PPP): $1.27 Trillion
The Philippines is one of the largest economies in Southeast Asia with a GDP of $1.27 trillion in 2023. The Philippines is one of the countries with the highest GDP in 2023.
28. Netherlands
GDP (PPP): $1.30 Trillion
The Netherlands is one of the richest countries in Europe. With a GDP of $1.30 trillion in 2023, the Netherlands ranks 28th among the countries with the highest GDP in 2023.
27. Nigeria
GDP (PPP): $1.36 Trillion
Nigeria is one of the fastest-growing economies in the world. Nigeria had a GDP of $1.36 trillion in 2023.
26. Vietnam
GDP (PPP): $1.43 Trillion
Vietnam is a small country located in Southeast Asia. In 2023, Vietnam had a GDP of $1.43 trillion.
25. Bangladesh
GDP (PPP): $1.47 Trillion
Bangladesh is one of the countries with the highest GDP in 2023, recorded at around $1.47 trillion.
24. Pakistan
GDP (PPP): $1.57 Trillion
Pakistan is the fifth most populated country in the world and had a GDP of $1.57 trillion in 2023. Pakistan ranks 24th among the countries with the highest GDP in 2023.
23. Thailand
GDP (PPP): $1.58 Trillion
Thailand is one of the largest economies in Asia. With a GDP of $1.58 trillion, Thailand ranks among the countries with the highest GDP in 2023.
22. Taiwan
GDP (PPP): $1.68 Trillion
Taiwan is a small state with one of the largest economies in the world. Taiwan had a GDP of $1.68 trillion in 2023.
21. Poland
GDP (PPP): $1.70 Trillion
Poland is one of the richest countries in the world with a GDP per capita of $47,700. In 2023, Poland had a GDP of $1.70 trillion.
20. Australia
GDP (PPP): $1.71 Trillion
Australia is one of the fastest-growing economies in the world. Australia had a GDP of $1.71 trillion in 2023.
19. Iran
GDP (PPP): $1.72 Trillion
Iran is placed 19th among the countries with the highest GDP in 2023. Iran had a GDP of $1.72 trillion in 2023.
18. Egypt
GDP (PPP): $1.81 Trillion
Egypt is one of the largest economies in Africa. In 2023, Egypt had a GDP of $1.81 trillion.
17. Saudi Arabia
GDP (PPP): $2.25 Trillion
Saudi Arabia is one of the fastest-growing economies in the Middle East. Saudi Arabia had a GDP of $2.25 trillion in 2023.
16. Canada
GDP (PPP): $2.38 Trillion
Canada had a GDP of $2.38 trillion in 2023. Canada ranks among the countries with the highest GDP in 2023.
15. Spain
GDP (PPP): $2.41 Trillion
Spain is one of the richest European countries having a GDP per capita of $52,271. Spain ranks 15th among the countries with the highest GDP in 2023, recorded at around $2.41 trillion.
14. South Korea
GDP (PPP): $2.92 Trillion
South Korea is one of the largest economies in Asia with a GDP of $2.92 trillion in 2023. South Korea is one of the countries with the highest GDP in 2023.
13. Italy
GDP (PPP): $3.19 Trillion
Italy is one of the largest economies in Europe. Italy had a GDP of $3.19 trillion in 2023.
12. Mexico
GDP (PPP): $3.27 Trillion
Mexico is one of the largest economies in Latin America. In 2023, Mexico’s GDP was reported at $3.27 trillion.
11. Türkiye
GDP (PPP): $3.61 Trillion
Türkiye had a GDP of $3.61 trillion in 2023. Türkiye ranks 11th among the countries with the highest GDP in 2023.
10. France
GDP (PPP): $3.86 Trillion
In 2023, France had a GDP of $3.86 trillion. France is one of the largest economies in Europe.
9. United Kingdom
GDP (PPP): $3.87 Trillion
The United Kingdom is placed ninth among the countries with the highest GDP in 2023. The United Kingdom had a GDP of $3.87 trillion in 2023.
8. Brazil
GDP (PPP): $4.10 Trillion
Brazil had a GDP of $4.10 trillion in 2023 and is one of the largest economies in Latin America.
7. Indonesia
GDP (PPP): $4.40 Trillion
Indonesia had a GDP of $4.40 trillion in 2023. Indonesia ranks seventh among the countries with the highest GDP in 2023.
6. Russia
GDP (PPP): $5.10 Trillion
Russia is one of the largest economies in the world and had a GDP of $5.10 trillion in 2023.
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Disclosure: None. 30 Countries with the Highest GDP in 2023 is originally published on Insider Monkey.