Experts predicted GDP of national economies for 2018

Experts recall that nominal GDP is the total market value of all final goods and services produced in a country in a given year. Comparisons between economies and people's incomes are made by adjusting for differences in prices between countries - at purchasing power parity (PPP).

According to forecasts, the gross world product in 2018 will be 84.38 trillion. US dollars, its PPP is projected at 133.81 trillion. dollars Analysts call the US and China the largest economies, the state of Tuvalu - the weakest economy in the world.

The nominal GDP of the United States, which leads this ranking, is 23.9% of world wealth, while the smallest economy of Tuvalu is only 0.00005%. In terms of purchasing power parity, China ranks first with 18.8%, while Tuvalu has the lowest rating - 0.00003%.

In nominal terms, 16 countries have a GDP over $1 trillion, 65 over $100 billion and 178 over $1 billion. The world's five largest economies account for approximately 53.43% of the world's wealth. The top ten leaders account for about 66.86%, and the top 20 world economies cover more than 80% of the global economy. At the same time, the 92 smallest economies in the world contribute only 1% to global wealth, while the 155 least developed countries contribute only 10% of the total.

According to PPP, 25 world economies have a GDP of more than $1 trillion, 85 countries - more than $100 billion, and 182 world economies - $1 billion. Five countries account for 48.95% of the world economy. The share of the top ten in the ranking is more than 61%, and the contribution of the TOP-20 economies exceeds 75%. The 150 smallest economies have only 10% of the world's total wealth.

There are many differences between nominal GDP and GDP (PPP). For example, Myanmar shows the largest difference in monetary terms in the PPP ranking ($362.96 billion) compared to the nominal rating ($74.0 billion). The biggest difference between Iceland's rankings is 101st in the nominal ranking and 148th in the PPP rankings. And only 11 national economies in the world have the same rank in both methods.

How to identify countries with a strong economy among the huge number of countries in the world? To identify highly developed countries, let's pay attention to the ratings - the results of comparative studies made by international experts and organizations to rank countries according to various indicators. Every year, studies are published showing which country has risen to the TOP, which has fallen. Consider the main indicators that determine which countries in 2019 became the most influential in the economic field, have the highest standard of living, prosperity and freedom.

Level of economic development

The level of economic development assesses the efficiency and maturity of the country's economy. It is not for nothing that only countries with a high level of economic development are included in the group of developed countries, while the rest are called developing. This level is determined by various ratings.

Did you know that there are 252 countries in the world, each of which has its own unique living conditions? Moreover, among them there are such states where even the most ordinary citizen practically does not need anything and lives a full and happy life. But there are also lands where more than 90% of the population barely make ends meet. In this regard, it would be very appropriate to talk about the countries with the highest standard of living in the world, in which everyone would dream of living. To learn more about this, read the text below.

Country ranking by GDP

The key indicator is the level of gross domestic product (GDP). This is the name of the total value of goods, services and other results of the activities of enterprises, firms, companies, institutions, organizations, individuals. This is the result of the work of all residents of the country in question during the year. It is calculated in two ways. The first is when all the income received during the year is added up: interest, profit, salary, and so on. The second is when expenses are summed up (government purchases, investments, consumption, export minus imports). The official source of such information is the World Bank database. The statistics are updated every year and published in autumn. The indicator is also kept by the International Monetary Fund and the UN.

The backbone of the world's GDP is produced by only a few countries, mostly large in territory and population.

If all goods and services produced in monetary terms (GDP) is an absolute value, then by comparing the gross domestic product with the population, we get a relative indicator indicating the well-being of citizens.

According to the World Bank and the IMF in 2014, the European Union has the best GDP indicators (18.5 thousand dollars). Based on countries, the first places in this indicator are occupied by:

№	A country	GDP, trillion.$	GDP per capita, thousand $	Unemployment rate, %
1.	USA	17,348	54,370	6,2
2.	China	10,357	7,572	4,1
3.	Japan	4,602	36,222	3,6
4.	3,874	47,774	5,0
5.	Great Britain	2,950	45,729	6,2
6.	France	2,834	44,332	10,3
7.	Brazil	2,347	11,573	4,8
8.	Italy	2,148	35,335	12,7
9.	India	2,051	1,608	n/a
10.	Russian Federation	1,861	12,718	5,2
11.	1,785	50,304	6,9
12.	1,443	61,066	6,1
13.	Spain	1,407	30,272	24,5
14.	0,881	52,225	7,4
15.	0,704	86,468	3,2
16.	Sweden	0,571	58,538	7,9
17.	Norway	0,500	96,930	3,5
18.	Austria	0,438	51,433	5,6
19.	Denmark	0,342	60,947	6,5
20.	0,308	56,287	2,0

The unemployment rate shows what part of the able-bodied population cannot get a job. This indicator indirectly characterizes the country's economy: the higher it is, the worse the quality of life of people and the economic situation in a certain territory.

economic freedom

The most important indicator of a country's development is the level (or index) of economic freedom. Since 1995, it has been defined by the American research center "Heritage Foundation" and published annually on its website and in the Wall Street Journal.

Based on the theories of Adam Smith, experts at the Heritage Foundation define economic freedom as the level of non-intervention by the state in the process of production, distribution and consumption, except in situations where it is necessary to protect citizens.

The index is calculated according to the arithmetic mean of ten criteria of freedom - property, absence of corruption, the government's share in regulating the economy, freedom of trade, investment, labor, entrepreneurship, monetary, fiscal, financial. For each of them, an evaluation scale is developed from 0 to 100 points, which are summed up as a result. The higher the score, the higher the level of economic freedom.

Prosperity Rating

The economic achievements of the countries of the world are also measured by the level of prosperity. This indicator is offered by the English analytical center Legatum Institute. He has been calculating it since 2006. This index is determined by the level of social well-being of countries in the field of economic development, entrepreneurship, governance, health, security, education, personal freedoms and social capital. Each of the eight criteria is calculated on the basis of statistical research by the United Nations, the World Bank, sociological data from the Gallup Institute and other authoritative centers. According to the results of comparative studies, a rating of states is published annually. In 2019, such results were published for 142 countries of the world.

Norway, Switzerland, Denmark, New Zealand, Sweden, Canada, Australia, and the Netherlands have the best indicators on the prosperity index.

Other indicators

There are other indicators by which the rating of a country's economic development is measured. This is the level of GDP per capita. It is not considered a strict characteristic, but is considered an important indicator. According to the IMF list for October 2019, the leading countries in this index are:

• Luxembourg
• Qatar
• Norway
• Denmark
• Iceland.

A more accurate characteristic is the level of the same indicator in terms of parity (the ratio of several currencies) per capita purchasing power to a certain set of services or goods. Here the first places in 2014 were taken by:

• Qatar
• Luxembourg
• Brunei
• Kuwait
• Norway
• Emirates
• San Marino

The Human Development Index, which has been published in the reports of the United Nations Development Program since 1990, is another traditional comparative indicator of living standards and the economy. Norway, Australia, Switzerland, Netherlands, USA, Germany, New Zealand, Canada, Singapore, Denmark have a very high human development rating, according to the latest 2014 report.

Based on all these indicators, the world's strongest and most efficient economies for 2019 are:

1. USA

When assessed on a purchasing power parity basis, the US lags behind the People's Republic of China in first place. This gap is expected to narrow by 2023, when the US reaches $24.53 trillion and China $21.57 trillion.

Despite the relatively low employment rate of the population (68%), the average annual income of an American family is $38,000. The United States is one of the most economically developed countries on the planet. More than 86% of citizens are satisfied with their living conditions, security level and economic stability. The average duration is 79 years.

The US ranks first in 2019 in terms of GDP

The most stable economy in the world belongs to the United States, it has held its leading position for more than 100 years. A comprehensively developed economic policy is based on the banking system, the largest stock exchange, advanced IT technologies and agriculture, which is not devoid of innovative solutions and progress. America, thanks to its significant coverage of fields of activity and advanced technologies in them, has great influence in the world and enjoys it.

Hong Kong has no equal in terms of economic freedom

Australia ranks high on all counts

Among them are the famous automotive concerns Volkswagen, BMW, Daimler, the chemical companies Bayer, BASF, Henkel Group, the Siemens conglomerate, the energy companies E.ON and RWE, or the Bosch group. Cities such as Hannover, Frankfurt and Berlin host the largest annual international exhibitions and congresses.

Germany is a leading manufacturer of wind turbines and a major developer of solar energy technologies in the world.

At the end of the 19th century, Great Britain, in an attempt to protect its market from second-rate imports, obliged German goods to be labeled "Made in Germany".

Now Germany is experiencing a real "boom" of the automotive industry. It owes this to its key sales market - China.

It is Germany that has the strongest economy among the rest of the EU countries.

Switzerland has always been economically stable, and 2019 was no exception.

Canada is not far behind its neighbor - the United States - in terms of economic development

The Netherlands has not only a low crime rate, but also a consistently strong economy

New Zealand boasts not only picturesque nature, but also a high level of prosperity

Singapore in terms of performance does not lag behind other economic giants, and sometimes even outperforms them

10. Japan

Japan has a high degree of economic freedom: the government works closely with the manufacturer, stimulating its development. The main focus is on science and high technology. All this, as well as strict labor discipline, contribute to the rise of the Japanese economy.

A distinctive feature of the country is "keiretsu" - associations of manufacturers, suppliers, distributors around powerful banks, as well as relatively weak international competition in domestic markets. In addition, there are many more social than industrial arrangements: for example, the guarantee of lifetime employment in large companies.

A small country with high discipline and diligence of citizens, which made it possible to achieve great success in the field of technology and production. A high standard of living is fixed here and lifelong employment of citizens is practiced, it is believed that the longer a person has worked in one place, the more prestigious it is. The country's banking sector is stable and developed, high technology allows it to compete on an equal footing with America and China, and in the field of robotics, Japan has gone far ahead, overtaking the United States. GDP in Japan for 2019 amounted to 4.513 trillion dollars, which allowed it to take an honorable 3rd place among the leading countries in the world.

Japan - the land of the rising sun - was once the strongest state in terms of economic indicators, but in 2019 it is among the top ten

Corruption Perceptions Index

Since 1996, the rating of the level of corruption has been recognized as the most important indicator of the state of the country's economy. The official name is the Corruption Perceptions Index. It was introduced by the international non-governmental organization Transparency International. It takes into account how widespread corruption is in the public sector.

Interestingly, the study is not based on the statistics of criminal cases or sentences, but on the opinion of those who suffer from corruption or study this phenomenon.

To determine this index, we developed a scale from zero to one hundred, where 0 means the maximum level of corruption, and 100 - its absence. Although the methodology by which the rating is determined is the object of criticism, in general it is recognized by experts as relatively reliable. The latest study, published in 2019, covers 174 countries.

Place	A country	2015	2014	2013
1	Denmark	92	91	90
2	91	91	90
3	Finland	89	89	90
4	Sweden	87	89	88
5	Norway	86	86	85
5	86	85	86
7	84	86	87
8	83	83	84
9	Luxembourg	82	80	80
10	81	81	84
11	80	81	85
12	79	78	79
12	Iceland	79	78	82
14	Great Britain	78	76	74
15	Belgium	76	75	75
15	Japan	76	74	74
17	Ireland	74	72	69
17	United States	74	73	73
23	Austria	72	69	69
26	Estonia	69	68	64
26	France	69	71	71
37	Spain	6o	59	65
69	Brazil	43	42	43
69	Italy	43	43	42
85	India	38	36	36
100	China	36	40	39
136	Russian Federation	27	28	28

Credit ratings

The economic "health" of the country is also assessed by financial or credit ratings. They are calculated taking into account the financial history of the state, the size of its property and the ability and desire to pay debts. Such an index is needed in order to make it clear to potential creditors or investors how safe it is to deal with the country. Financial ratings are assessed by international agencies. Moody's, Standard and Poor's and Fitch have the most serious reputation. They work all over the world and help to distinguish reliable partners from unreliable ones. Each of them has its own naming system, but in general, countries with a high degree of obligation are designated by the letter A, medium and lower - Ba, risky - B, high risk and close to default - C.

	S&P	Forecast	Moody's	Forecast	Fitch	Forecast	TRADING ECONOMICS
Albania	B	positive	B1	stable			33	positive
Andorra	BBB-	negative					55	negative
Angola	B+	negative	Ba2	negative	B+	stable	38	negative
Argentina	SD	nm	Caa1	positive	RD		20	nm
Armenia			Ba3	negative	B+	stable	38	negative
Aruba	BBB+	stable			BBB-	stable	60	stable
AAA	stable	Aaa	stable	AAA	stable	97	stable
Austria	AA+	stable	Aaa	negative	AA+	stable	96	stable
Azerbaijan	BBB-	negative	Baa3	stable	BBB-	stable	55	negative
Bahamas	BBB-	negative	Baa2	stable			58	negative
Bahrain	BBB-	negative	Baa3	negative	BBB-	negative	55	negative
Bangladesh	bb-	stable	Ba3	stable	bb-	stable	40	stable
Barbados	B	negative	B3	negative			28	negative
Belarus	B-	stable	Caa1	negative			23	stable
Belgium	AA	stable	Aa3	stable	AA	negative	88	stable
Belize	B-	stable	Caa2	stable			20	stable
Bermuda	A+	stable	A1	stable			80	stable
Bolivia	BB	stable	Ba3	stable	BB	stable	44	stable
Bosnia and Herzegovina	B	stable	B3	stable			28	stable
Botswana	A-	stable	A2	stable			73	stable
Brazil	BB+	negative	Baa3	stable	BB+	negative	35	negative
Bulgaria	BB+	stable	Baa2	stable	BBB-	stable	52	stable
Burkina Faso	B-	stable					25	stable
Cambodia			B2	stable			30	stable
Cameroon	B	stable			B	stable	30	stable
AAA	stable	Aaa	stable	AAA	stable	99	stable
Cape Verde	B	stable			B	stable	30	stable
Cayman islands			Aa3	stable			85
Chile	AA-	stable	Aa3	stable	A+	stable	78	stable
China	AA-	stable	Aa3	stable	A+	stable	79	stable
Colombia	BBB	stable	Baa2	stable	BBB	stable	52	stable
Congo	B-	stable	B3	stable			25	stable
Costa Rica	BB	stable	Ba1	stable	BB+	negative	49	stable
Croatia	BB	negative	Ba1	negative	BB	negative	42	negative
Cuba			Caa2	positive			15	positive
Cyprus	bb-	positive	B1	stable	B+	positive	36	positive
Czech Republic	AA-	stable	A1	stable	A+	stable	80	stable
Denmark	AAA	stable	Aaa	stable	AAA	stable	99	stable
Dominican Republic	bb-	stable	B1	stable	B+	positive	36	stable
Ecuador	B	stable	B3	stable	B	stable	29	stable
Egypt	B-	stable	B3	stable	B	stable	28	stable
Salvador	B+	stable	Ba3	negative	B+	stable	36	stable
Estonia	AA-	stable	A1	stable	A+	stable	81	stable
Ethiopia	B	stable	B1	stable	B	stable	31	stable
European Union	AA+	negative					95	negative
Fiji	B+	stable	B1	stable			35	stable
Finland	AA+	negative	Aaa	negative	AAA	negative	98	negative
France	AA	negative	Aa2	stable	AA	stable	89	negative
Gabon	B+	negative	Ba3	stable	B+	stable	36	negative
Georgia	bb-	stable	Ba3	positive	bb-	stable	40	stable
AAA	stable	Aaa	stable	AAA	stable	99	stable
Ghana	B-	stable	B3	negative	B	negative	28	stable
Greece	CCC+	stable	Caa3	stable	CCC		9	stable
Guatemala	BB	stable	Ba1	negative	BB	stable	46	stable
Honduras	B+	stable	B3	positive			30	stable
AAA	stable	Aa1	stable	AA+	stable	94	stable
Hungary	BB+	stable	Ba1	stable	BB+	positive	46	stable
Iceland	BBB	stable	Baa2	stable	BBB+	stable	57	stable
India	BBB-	stable	Baa3	positive	BBB-	stable	47	stable
Indonesia	BB+	positive	Baa3	stable	BBB-	stable	45	positive
Iraq	B-	stable	Caa1	stable	B-	stable	24	stable
Ireland	A+	stable	Baa1	positive	A-	positive	70	stable
Isle Of Man			Aa1	stable			95	stable
Israel	A+	stable	A1	stable	A	stable	75	stable
Italy	BBB-	stable	Baa2	stable	BBB+	stable	59	stable
Ivory Coast			Ba3	stable	B+	stable	38	stable
Jamaica	B	stable	Caa2	positive	B-	positive	24	stable
Japan	A+	stable	A1	stable	A	stable	77	stable
Jordan	bb-	stable	B1	stable			38	stable
Kazakhstan	BBB	negative	Baa2	stable	BBB+	stable	63	negative
Kenya	B+	negative	B1	stable	B+	negative	20	negative
Kuwait	AA	stable	Aa2	stable	AA	stable	90	stable
Kyrgyzstan	B	stable	B2	stable			30	stable
Latvia	A-	stable	A3	stable	A-	stable	69	stable
Lebanon	B-	negative	B2	negative	B	negative	29	negative
Lesotho					bb-	negative	40	negative
Liechtenstein	AAA	stable					100	stable
Lithuania	A-	stable	A3	stable	A-	stable	68	stable
Luxembourg	AAA	stable	Aaa	stable	AAA	stable	100	stable
Macau			Aa2	stable	AA-	stable	88	stable
Macedonia	bb-	stable			BB+	negative	45	stable
Malaysia	A-	stable	A3	positive	A-	stable	66	stable
Malta	BBB+	positive	A3	stable	A	stable	71	positive
Mauritius			Baa1	stable			65
Mexico	BBB+	stable	A3	stable	BBB+	stable	60	stable
Moldova			B3	negative			25	negative
Mongolia	B	stable	B2	negative	B	stable	30	stable
Montenegro	B+	stable	Ba3	negative			38	stable
Morocco	BBB-	stable	Ba1	stable	BBB-	stable	54	stable
Mozambique	B-	negative	B2	rur	B	stable	29	negative
Namibia			Baa3	stable	BBB-	stable	55	stable
AAA	stable	Aaa	stable	AAA	stable	99	stable
AA	stable	Aaa	stable	AA	positive	89	stable
Nicaragua			B2	stable	B+	stable	33	stable
Nigeria	B+	stable	Ba3	stable	bb-	negative	22	stable
Norway	AAA	stable	Aaa	stable	AAA	stable	98	stable
Oman	BBB+	negative	A1	negative			73	negative
Pakistan	B-	positive	B3	stable	B	stable	19	positive
Panama	BBB	stable	Baa2	stable	BBB	stable	60	stable
Papua New Guinea	B+	negative	B1	negative			35	negative
Paraguay	BB	positive	Ba1	stable	BB	stable	46	positive
Peru	BBB+	stable	A3	stable	BBB+	stable	59	stable
Philippines	BBB	stable	Baa2	stable	BBB-	positive	54	stable
Poland	A-	positive	A2	stable	A-	stable	68	positive
Portugal	BB+	stable	Ba1	stable	BB+	positive	47	stable
Puerto Rico	CCC-	negative	Caa3	negative			10	negative
Qatar	AA	stable	Aa2	stable	AA	stable	87	stable
Republic of the Congo	B	stable	Ba3	negative	B+	stable	35	stable
Romania	BBB-	stable	Baa3	positive	BBB-	stable	51	stable
Russia	BB+	negative	Ba1	stable	BBB-	negative	43	negative
Rwanda	B+	stable			B+	stable	35	stable
San Marine					BBB+	stable	65	stable
Saudi Arabia	A+	negative	Aa3	stable	AA	negative	86	negative
Senegal	B+	stable	B1	positive			35	stable
Serbia	bb-	negative	B1	stable	B+	positive	36	negative
Seychelles					bb-	stable	40	stable
AAA	stable	Aaa	stable	AAA	stable	97	stable
Slovakia	A+	stable	A2	stable	A+	stable	78	stable
Slovenia	A-	positive	Baa3	stable	BBB+	positive	62	positive
Solomon islands			B3	stable			25	stable
South Africa	BBB-	negative	Baa2	negative	BBB-	stable	46	negative
South Korea	AA-	stable	Aa2	stable	AA-	stable	84	stable
Spain	BBB+	stable	Baa2	positive	BBB+	stable	62	stable
Sri Lanka	B+	stable	B1	stable	bb-	stable	38	stable
Saint Vincent and the Grenadines			B3	negative			25	negative
Suriname	bb-	stable	Ba3	stable	bb-	stable	40	stable
Sweden	AAA	stable	Aaa	stable	AAA	stable	99	stable
AAA	stable	Aaa	stable	AAA	stable	100	stable
Taiwan	AA-	stable	Aa3	stable	A+	positive	81	stable
Thailand	BBB+	stable	Baa1	stable	BBB+	stable	62	stable
Trinidad and Tobago	A	stable	Baa2	negative			68	stable
Tunisia			Ba3	stable	bb-	stable	40	stable
Türkiye	BB+	negative	Baa3	negative	BBB-	stable	43	negative
Uganda	B	stable	B1	negative	B+	stable	34	stable
Ukraine	B-	stable	Caa3	stable	RD		18	stable
United Arab Emirates	AA	stable	Aa2	stable	AA	stable	90	stable
Great Britain	AAA	negative	AA1	stable	AA+	stable	94	negative
United States	AA+	stable	Aaa	stable	AAA	stable	97	stable
Uruguay	BBB	stable	Baa2	stable	BBB-	stable	58	stable
Venezuela	CCC	negative	Caa3	stable	CCC		6	negative
Vietnam	bb-	stable	B1	stable	bb-	stable	32	stable
Zambia	B	stable	B2	stable	B	stable	30	stable

Rating	Rating value
AAA	lowest risk, highest creditworthiness
AA+	moderate risk, very high creditworthiness, first level
AA	moderate risk, very high creditworthiness, second tier
AA-	moderate risk, very high creditworthiness, tier three
A	moderate risk, high creditworthiness, second level
A-	moderate risk, high creditworthiness, third level
VVV+	moderate risk, sufficient creditworthiness, first level
VVV	moderate risk, sufficient creditworthiness, second level
VVV-	moderate risk, sufficient creditworthiness, third level
CCC	high risk and threat of default, significant credit risk

Index with a "human face"

The last few years have demonstrated the importance of such an indicator of economic development as social progress. Therefore, in 2013, the Social Progress Index was developed as an alternative to economic indicators. Its author is Harvard University professor Michael Porter. This rating is calculated based on the analysis of sociological survey data, expert opinions and statistical information from international organizations. Determining the achievements of each country in this area, the researchers took into account more than fifty factors.

1. This is the satisfaction of basic needs - food, water and medical care, housing, the degree of personal security.
2. Then the fundamental foundations of well-being are taken into account - access to education and information, the level of literacy and communication.
3. And, finally, development opportunities are analyzed - the level of protection of civil and political rights and self-realization is determined.

№	A country	COI	Basic human needs	Fundamentals of Wellbeing	Opportunities for development
1.	Norway	88,36	94,80	88,46	81,82
2.	Sweden	88,06	94,83	86,43	82,93
3.	87,97	95,66	86,5	81,75
4.	Iceland	87,62	95	86,11	81,73
5.	87,08	92,87	82,77	85,61
6.	86,89	94,89	79,22	86,58
7.	Finland	86,75	95,05	82,58	82,63
8.	Denmark	86,63	96,03	82,63	81,23
9.	86,5	94,8	83,81	80,88
10.	86,42	93,73	79,98	85,55
11.	Great Britain	84,68	92,22	79,04	82,78
12.	Ireland	84,66	93,68	76,34	83,97
13.	Austria	84,45	95,04	82,53	75,77
14.	84,04	94,12	81,5	76,49
15.	Japan	83,15	95,01	78,78	75,66
16.	USA	82,85	91,23	75,15	82,18
20.	Spain	81,17	91,09	76,79	75,62
21.	France	80,82	91,16	78,83	72,46
23.	Estonia	80,49	88,44	79,61	73,42
31.	Italy	77,38	88,39	77	66,76
42.	Brazil	70,89	71,14	76,21	65,33
71.	Russian Federation	63,64	74,1	67,63	49,19
92.	China	59,07	73,74	65,4	38,08
101.	India	53,06	58,87	57,38	42,93

From the results of the studies we analyzed, it is clear that there is a direct relationship between economic freedom, financial security, standard of living, and social progress. Countries such as New Zealand, Australia, Canada, Switzerland, Norway, the Netherlands lead among those who provide their citizens with a decent standard of living and at the same time respect civil and political rights, and also pay their bills honestly. Little Asian "tigers": Singapore or Hong Kong, as well as oil "millionaires" (UAE, Qatar) are "ahead of the rest" in terms of economic freedom and per capita income. But countries with a strong and efficient economy - the USA, China, Japan, Great Britain, Germany - are distributed in different positions in the ranking, because. far from always being able to provide the people living there with a high level of income and opportunities for development.

In order to assess the economic situation of any country, it is necessary to view the statistics of certain indicators.

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One of the important indicators that affect the development of any economy is GDP. To draw conclusions about the most “strong” countries in the world, it will be enough to familiarize yourself with the table of GDP volume by country in 2020.

Initial Aspects

Very often, in order to assess the economic situation in the country, such an indicator as GDP is used. All literate citizens know about this value.

People often hear about this indicator from the news of the world economy. Not everyone understands what GDP is. GDP is short for Gross Domestic Product.

In simple terms, this is the total cost of products or services produced by a certain country, for a certain amount of time.

This indicator is expressed in monetary terms. But usually in all states it is customary to count not in the national currency, but in dollars, because it is one of the most stable currencies in the world.

Often, GDP is analyzed as an indicator of the standard of living of citizens, since in certain situations it is used for this purpose due to the lack of more suitable parameters.

The use of GDP as an indication of the economic well-being of the population represents a trade-off due to the lack of other comparable indicators of income.

GDP is calculated in two ways:

1. The summation of all income in the economy.
2. The summation of all expenses.

Theoretically, the result of the calculations in the two cases should be the same, since the costs of one participant in the economic process are always income for the other.

It is very critical for the country's economy when expenses exaggerate expenses. To balance, you can achieve results when these indicators are the same, but the ideal option will always be when income is many times greater than expenses.

GDP statistics are fixed throughout the financial year (which ends on June 30) and are updated every year (updated statistics are usually issued in November-December).

Let's take a closer look at which countries are outsiders and which ones have achieved tremendous success.

What types are distinguished today

To date, there are such types of GDP, each of them characterizes a separate indicator, which are closely related:

1. Real GDP.
2. Nominal GDP.

Under the real GDP is meant all the products done, as well as the services rendered for a given period taken, which has its value in the form of standard costs. These are fixed prices.

Nominal GDP shows the total volume of manufactured goods and services, which are measured in value, which is relevant for that period of time.

The difference between nominal and real GDP is that the nominal level of GDP is affected by the overall level of the volume of manufactured products, as well as changes in the price of products sold.

In turn, the indicator of real GDP is affected by the volume of manufactured products, this is due to the fact that the formula for calculating this type of GDP is:

Real GDP = Nominal GDP / General price level

It has been said that these two indicators are closely related to each other, that is, their ratio to each other is called the GDP deflator.

That is, in simple words, the deflator is an indicator of the difference in the entire cost of production in the economic sphere.

Calculating the level of GDP per capita is not difficult, in this case it is necessary:

Total GDP/total population of the country

Ranking of gross domestic product per capita by state (PPP)

Gross domestic product at purchasing power parity is data that indicates the economic development of states.

GDP PPP data, which are typical for some of the most developed countries in the world:

Every year, the share of China's GDP is growing by 10%. Other countries are also rapidly increasing the level of GDP per person.

In the near future, China can take the lead if it develops at the same pace. The US achieves its results thanks to the stability of the dollar, because it is used all over the world.

And also thanks to the largest companies Microsoft and Google. Every year, GDP increases by 2.2%. GDP per person reaches the level of 55 thousand dollars.

In Japan, GDP per capita is $39,000. According to the statistics of this country, it increases by 1.5% every year.

Despite the fact that it was destroyed after the Second World War, and having a specific habitat where cataclysms often occur, Japan remains in the leading states in terms of economic development.

As practice shows, a lot depends not only on external indicators, such as geographical location, availability of minerals, and other resources, but also on the country's leadership.

According to the IMF

According to the IMF, 20 large countries of the world can be distinguished, which have the largest GDP, after the top 5.

Table of GDP by countries of the world:

A country	Indicator (billion dollars)
France	2464.8
India	2288.7
Italy	1848.7
Brazil	1534.8
Canada	1462.3
South Korea	1321.2
Spain	1242.4
Australia	1200.8
Russia	1132.7
Mexico	1082.4
Indonesia	937
Türkiye	751.2
Switzerland	651.8
Saudi Arabia	818.3
Nigeria	538
Sweden	512.6
Taiwan	508.8
Poland	437.5
Belgium	465

According to the predictions of the IMF specialists, in 2020 the economies of states will increase by 3.7%.

According to the CIA

GDP per person is one of the important indicators of the economic situation of the state. GDP per person cannot be said as an accurate estimate, because the branch of production, the quality of manufactured products, and the cost of production have a more accurate value.

The development of the economy of each country is very different, depending on how the country's policy is conducted, as well as the desire of the government to correct the situation for the better. Data for the last year of the CIA on the GDP of countries.

Country GDP value (in US dollars):

Qatar	145.000
Luxembourg	102.900
Liechtenstein	89.400
Macau	88.700
Singapore	85.700
Monaco	78.700
Norway	68.400
UAE	67.000
Switzerland	59.300
USA	56.300
Ireland	54.300
Netherlands	49.300
Sweden	48.000
Canada	45.900
Belgium	44.100
France	41.400
Britannia	41.200
EU	37.800

The poorest countries

It so happened that the poorest countries in the world are the countries of Africa. It depends on the fact that there are constant wars in their territories, large unpunished crime, sheer corruption, environmental problems, and the development of the economy depends on these factors.

According to the analysis of the International Monetary Fund, today about 800 million people a day can live on one and a half dollars a day.

A very large part of the earth lives in extreme poverty. According to the data released by the IMF, in terms of GDP per person in terms of PPP, we can single out the poorest countries in the world in 2020:

Madagascar	GDP per capita $1504
Eritrea	GDP is 1321$
Guinea	GDP shows the figure of $ 1271 per capita
Mozambique	GDP is 1228 $
Malawi	GDP is 1139$
Niger	GDP per capita $1111
Liberia	$882 per capita
Burundi	$818 per capita
Republic of the Congo	GDP $784
Central African Republic (CAR)	GDP is $656 per capita

Despite the fact that some countries are rich in natural resources such as gold, diamonds, oil, many of their inhabitants have to survive on the street without having their own home.

GDP growth during the crisis, the state of the economy, the increase in the average wage are the factors that have allowed some countries to maintain leadership positions in terms of the quality of life of the population. At the end of 2016, which countries became more comfortable for life, which left the TOP-10 and which still remain dream countries? About this - in our article!

A good country is a healthy country. According to the World Health Organization (WHO), the UN and the World Bank, the TOP-10 states with the healthiest population looks like this:

1. Iceland. Its superiority is due to the maximum number of health workers (more than 3.6 per 1,000 population), the minimum number of people diagnosed with tuberculosis (only 2 per 1,000 people) and the highest life expectancy in the world (over 72 years for men and 74 for women).
2. Singapore. The minimum number of people suffering from obesity (1.8%) and high life expectancy (average - 82 years) allowed this city-state to take a high place in the ranking.
3. Sweden. A small number of tuberculosis patients (only 3 per 1,000 people), coupled with a minimal infant mortality rate, allowed her to take an honorable 2nd place.
4. Germany. More than 11% of the state's GDP goes to healthcare (Germany spends more than 3,500 euros annually on the treatment of citizens).
5. Switzerland. The high place in the rating is due to the large number of doctors (3.6 per 1 thousand people)
6. Andorra. Health care expenditures in Andorra amount to more than 8% of GDP, and the average life expectancy of the population exceeds 82 years.
7. Great Britain. This country is the only state in the West, which owns 95% of medical facilities operating on its territory. More than 9.8% of GDP is spent on healthcare.
8. Finland. In this country, about 300 people a year fall ill with tuberculosis, while 30 thousand people are diagnosed with cancer every year (over 75% of patients are completely cured).
9. Netherlands. The country has a low incidence of tuberculosis (5.4 people per 1 thousand inhabitants) and sufficient life expectancy - more than 81 years.
10. Canada. The Medicare healthcare system is the pride of this North American state, because it guarantees almost free medical care to every inhabitant. Health expenditures account for over 10% of GDP, and the life expectancy of citizens exceeds 80 years.

The worst countries in terms of the health of citizens are African states: Swaziland, Somalia, South Sudan, Chad, the Central African Republic, Mali, etc. The rating is based on data from researchers at the University of Seattle and the Bloomberg news agency.

WHO uses a special indicator to determine the quality of health care - life expectancy at birth. According to the rating of the World Health Organization, Russia ranks 110th in terms of medical care. And although the healthcare system leaves much to be desired, the Russian Federation is ahead of other CIS countries, such as Kazakhstan (111th place), Tajikistan (115th), Armenia (116th), Uzbekistan (117th), Ukraine (151st), losing only to the Republic of Belarus (98th place).

TOP 10 countries ideal for business

A strong economy is unthinkable without a successful business. The Forbes edition in 2016 compiled a list of countries that are most convenient for doing business. It is noteworthy that out of 10 participants in the rating, 6 are EU countries:

1. Sweden;
2. New Zealand;
3. Hong Kong;
4. Ireland;
5. Great Britain;
6. Denmark;
7. Netherlands;
8. Finland;
9. Norway;
10. Canada.

The American edition has been forming the rating for 11 years, taking into account the level of bureaucracy, taxes, corruption, economic growth, financial and personal freedom of citizens - a total of 11 factors were taken into account. For 7 of them, Sweden was in the top ten, because its economy grew by 4.2 percent at the end of the year with a GDP of 493 billion US dollars. The data for the assessment was obtained from the reports of the World Bank, the World Economic Forum, the non-governmental international anti-corruption organization Transparency International, etc.

In terms of the level of economic development, Russia took 40th place, and in terms of the complexity of starting a business, it was in 26th position. In terms of the availability of electricity, the Russian Federation became 30th, in terms of the availability of loans it became 44th, in terms of taxation - 45th, in terms of the complexity of obtaining construction rights, our country became 115th. According to the World Bank, the ideal country for doing business (without taking into account additional criteria, such as economic growth) is New Zealand, because in it "paying taxes is as easy as writing a check."

The most prosperous countries in the world

Well, where we do not? The British non-profit organization The Legatum Institute has published a world ranking study of the most prosperous countries in the world. The most "prosperous" countries are determined taking into account economic and social indicators, business opportunities, the level of education and health care, social capital and personal freedoms of citizens. Experts evaluated 149 countries, giving them scores in the range of 0 - 10 on 89 criteria.

Based on the results of the analysis conducted in 2016, the following rating was compiled:

1. New Zealand (prosperity index - 79.28);
2. Norway (78.66);
3. Finland (78.56);
4. Switzerland (78.10);
5. Canada (77.67);
6. Australia (77.48);
7. Netherlands (77.44);
8. Sweden (77.43);
9. Denmark (77.37);
10. UK (77.18).

The purpose of the study is to study the public welfare of the states of the world on a global scale. The Prosperity Index is a composite indicator that measures the achievements of states in terms of well-being. In this list, Russia occupies 95th position (prosperity index - 54.73). The closest "neighbors" in the rating are Nepal and Moldova (94th and 96th places, respectively). Among the CIS countries, Russia has the best indicators: 25th place in terms of the quality of education, 56th in terms of environmental safety, and 69th in entrepreneurship.

Russia's achievements are obvious - every year it moves to the top lines of the rating. At the same time, the results should be viewed through the prism of political sentiments: the report of the Legatum Institute repeatedly uses liberal clichés “Putin's Russia”, “Soviet heritage”, “communist past”, etc. When compiling the rating, the British organization uses survey data from the previous year, which does not allow a 100% objective reflection of reality.

Ranking of countries in the world in terms of living standards

The United Nations (UN) has been publishing a report on the quality of life of the population in various countries of the world since 1990. The rating is based on the Human Development Index, or Humanity Development Index (HDI). This index allows you to measure the achievements of states in the field of healthcare, incomes of the population, education, social services, etc.

The report was last published in 2015, and the best countries to live in were distributed in the UN rankings as follows:

1. Norway (0.94);
2. Australia (0.935);
3. Switzerland (0.93);
4. Denmark (0.923);
5. Netherlands (0.922);
6. Germany (0.916);
7. Ireland (0.916);
8. United States of America (0.916);
9. Canada (0.913);
10. New Zealand (0.913).

Russia is among the countries with a high human development index (0.798) on a par with Belarus. Our country is somewhat ahead of Oman, Romania, Uruguay, slightly yielding to Montenegro. The countries with the worst HDI index are located in Africa: Niger, CAR, Eritrea, Chad, Burundi, Burkina Faso, Guinea, Sierra Leone, Mozambique and Mali.

1. Denmark (201.53);
2. Switzerland (196.44);
3. Australia (196.40);
4. New Zealand (196.09);
5. Germany (189.87);
6. Austria (187);
7. Netherlands (186.46);
8. Spain (184.96);
9. Finland (183.98);
10. United States of America (181.91).

The index was calculated without the use of government data and official reports, so it can be considered subjective and depoliticized. For calculations, a formula was used that takes into account such factors as the purchasing power of the population, the ratio of the cost of real estate to the income of citizens, the safety and cost of living, the quality of healthcare, the climate, and even the situation on the roads (the less traffic jams, the better).

Russia ranks 55th in this list with a quality of life index of 86.53. It is somewhat ahead of Ukraine and slightly inferior to Egypt and Singapore. Russia showed good results in the field of real estate: the housing affordability index is 13.3 (this is only a little more than that of Austria, France, Estonia, and South Korea). The purchasing power index of Russians is half that of citizens of the leading countries of the list - only 52.6. But the cost of living index in Russia is one of the lowest (35.62). For comparison: in Switzerland it is 125.67, in Norway - 104.26.

The table of indices that determine the position of the listed countries looks like this:

A country	Purchasing power index of citizens	Healthy security	The ratio of the cost of housing and income of the population
Denmark	135.24	78.21	6.33
Switzerland	153.90	69.93	9.27
Australia	137.26	74.14	7.54
New Zealand	108.61	72.17	6.80
Germany	136.14	76.02	7.23
Austria	103.54	78.80	10.37
Netherlands	120.12	69.19	6.47
Spain	94.80	76.55	8.70
Finland	123.42	74.80	7.99
United States	130.17	68.18	3.39

Along with a high standard of living, relative affordability of housing, and high purchasing power of citizens, the leading countries in terms of living standards are also the most expensive to live in. The ranking of the most expensive countries to live in looks like this:

1. Switzerland - 126.03;
2. Norway - 118.59;
3. Venezuela - 111.51;
4. Iceland - 102.14;
5. Denmark - 100.06;
6. Australia - 99.32;
7. New Zealand - 93.71;
8. Singapore - 93.61;
9. Kuwait - 92.97;
10. Great Britain - 92.19.

TOP-10 is based on data from the research company Movehub (UK). The index used (the Consumer Price Index, or CPI) takes into account the cost of food, utilities, transportation, gasoline and entertainment. An interesting fact: the index reflects the ratio of the cost of living in New York (if it is 80, then living in the country is 20% cheaper than in the Big Apple).

The most affordable countries for life are mainly the countries of Asia and Africa: India, Indonesia, Bangladesh, Pakistan, Nepal, Egypt, Algeria. The states of Europe and North America are still attractive, but quite expensive to live in. The attractiveness is due to the excellent quality of medical and educational services. The best universities in the world are located on their territory: Harvard, Princeton and Yale, Oxford and Cambridge universities.

Many leaders of the listed ratings are countries with excellent ecology. According to Forbes, Switzerland, Sweden and Norway are the top three cleanest and most livable countries in terms of climate and ecology. There are practically no harmful industries on their territory, and endless green meadows, mountains and the purest natural reservoirs make living and relaxing in them as beneficial to health as possible.

It should be noted that many states are absolute leaders that excelled in all indicators. So, Norway, Iceland and Sweden can be safely called ideal for living, working, and tourism. And which countries, in your opinion, have provided their citizens with optimal living conditions and the highest possible standard of living? Share your personal experience and opinions in the comments!

We look forward to your feedback, reposts and comments, thank you.

Under the gross domestic product or GDP is understood the totality of all goods produced and services provided during the year by residents in the territory of a state. GDP is expressed in the prices of the so-called final consumer.

Structure of gross domestic product

• Results and results of activity of the enterprises.
• The results of the work of economic, financial organizations and structures that provide economic services.
• Organizations operating in territories that are part of the zone of economic influence of a particular country.
• Enterprises that are controlled by the capital of other countries and investors.
• The result of the activities of foreign companies.

There are two types of GDP:

1. Nominal, which is commonly understood as the total volume of products and services that are produced in the country. Nominal GDP is measured in prices that are current for today.
2. Real, which is understood as the volume of products and services produced and provided during a specific period of time. Measured at constant prices.

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Characteristics and features of GDP

Gross domestic product allows you to assess the pace, level and features of the development of the state economy for a year or another period of time. Also, GDP is used to analyze one or another aspect of economic development, fluctuations in the financial system and the conjuncture of the economic system.

GDP helps to assess the quality and standard of living of the population, its well-being and income for a selected period of time. To quantify the gross domestic product, the following methods are used:

• The sum of all incomes in a particular state - salaries of people, interest on capital, profits, rents.
• The summation of expenditures - consumer services, investments, public procurement of goods and services, net exports, i.e. export without import.

Both one and the second Both methods should give the same results, or approximately the same.

The basic information about the GDP of all states - and territories of the world is a database that is updated every year by the staff of the World Bank. All world development indicators are based on information received from international organizations and national statistical institutes.

The formation of statistics ends every year on June 30, the World Bank publishes a new report on GDP indicators in the world in November or December.

World GDP ranking in 2017

Quantitative indicators of the economic development of the countries of the world are reflected in US dollars. In 2017, the total GDP for all states, according to the World Bank, amounted to 76,671,787 million US dollars.

The top 10 countries in the world by GDP include:

• United States - $18,153,487
• China - 11,393,571.
• Japan - 4,825,207.
• Germany - 3,609,439.
• United Kingdom - 2,782,338.
• France - 2,605,813.
• India - 2,220,043.
• Italy - 1 914 131.
• Brazil - 1,835,993.
• Canada - 1,584,301.

Thus, the leading economies of the world are American, Chinese, Japanese, German and English.. And this trend has continued for several years.

1. Luxembourg.
2. Switzerland.
3. Qatar.
4. Norway.
5. Singapore.
6. Australia.
7. Denmark.
8. Iceland.

To determine the efficiency of the economy, it is customary to use not only the characteristics of GDP per capita, but also the determination of the extent to which purchasing power per capita corresponds to a set of consumer services and goods. TOP-5 countries by this parameter during 2014-2017 formed by countries such as:

1. Qatar.
2. Luxembourg.
3. Singapore.
4. Brunei.
5. Kuwait.

Of the European states, this list includes Norway - the sixth place, San Marino - the eighth, Switzerland - the ninth. Other positions are represented by the United Arab Emirates, Hong Kong, USA.

Russian GDP

Russian economy in 2016-2017 showed indicators of GDP growth, but they lag behind the forecast.

Nominal GDP in 2017 in Russia was 1.469 billion US dollars, and real - 4000 billion US dollars.

In 2018-2019 Russia's GDP will be as follows:

• Revenues will reach 15.25 trillion rubles, which is equal to almost 16% of the country's GDP. The same figure in 2019 will grow to 15.55 trillion rubles.
• Expenditures are planned at around 16.5 trillion rubles, which is about 17% of GDP, in 2019 expenditures will reach 16.4 trillion rubles.
• The budget deficit in 2018 will be about 1.3 trillion rubles.

According to the World Bank, the GDP of the Russian Federation in 2018 will increase from 1.3% in 2017 to 1.7%.

The strongest and weakest economies in the world

• The United States, whose leadership is constantly trying to challenge China. The GDP is 18 trillion trillion US dollars. The American national currency is recognized as one of the most stable in the world, which ensures the successful development of the economy and the receipt of high GDP every year. The annual GDP growth is 2.2%, and the income per person is 55 thousand US dollars.,
• China - GDP is US$11.21 trillion. The annual growth of the gross external product is 10%.
• Japan - GDP is equal to 4.21 trillion US dollars, the gross external product increases by 1.5% per year.
• Germany - GDP is equal to 3.413 trillion per year, the figure is growing every year by 0.4%.
• Britain - 2.8534 trillion a year.

Significant competition to the United States and China is made up of the EU countries, whose economies are successfully coping with the consequences of the global financial crisis and are actively developing. The leaders in terms of GDP for 2017 in the EU were:

1. Liechtenstein.
2. Netherlands.
3. Ireland.
4. Austria.
5. Sweden.
6. Germany.
7. Finland.
8. Italy.
9. Britannia.
10. Spain.

The world's weakest economies include:

• Venezuela, whose GDP may fall by 3.5% this year.
• Brazil - GDP will fall by 3%.
• Greece - 1.8%.
• Russia - by 0.5%.
• Ecuador - by 0.5%.
• Argentina - GDP will not change, but the economy is not attractive for investment.

Countries such as Venezuela, Zimbabwe, Burundi, Guinea, Yemen, Afghanistan, Chad are considered the worst for doing business and implementing investment projects.

It is recommended to invest in such states as China, Rwanda, Tanzania, Mozambique, Bhutan, India, New Guinea, Turkmenistan, Uzbekistan, Burma, Congo, Ethiopia. The economies of these countries are fast growing and developing as they export important products to the world market.

Thus, Uzbekistan has long become the largest supplier of cotton and natural gas, and is now developing the gold market. Ethiopia leads Africa in the export of agricultural products, textiles, and energy resources.

Destroyed in the 1990s. Rwanda is now actively exporting coffee, tea, minerals, which stimulates economic growth. Tanzania exports gold, Mozambique - natural gas, New Guinea - gold, oil, minerals.

Thus, the countries of Asia and Africa are successfully merging into the world economy, competing with European states.