New Delhi: In a historic development from a global economic perspective, India – a South Asian nuclear nation with a 1.39 billion population overtook the United Kingdom (UK) to become the world’s 5th largest economy in 2022.
According to International Monetary Fund (IMF) report quoted by visualcapitalist.com, with a total $ 25 trillion Gross Domestic Production (GDP) share, the United States is leading the world net $101.6 trillion dollar economy, followed by its rival yet fast-emerging Peoples Republic of China with $18.3 trillion GDP size.
Japan ranked 3rd with $ 4.3 trillion GDP, Germany $4.0 trillion, and India with $ 3.5 trillion gross domestic production replaced the UK to become the 5th largest economy in the world, and the first south Asian nation to cross $3 trillion economy during the period under review.
The majority of global economic activity comes from just a handful of countries with the US, China, Japan, Germany, and India making up the top 5, which together account for more than half of global GDP.
Just five countries make up more than half of the world’s entire GDP in 2022: the U.S., China, Japan, India, and Germany. Interestingly, These top five economies which together account for more than half of global GDP reported by visualcapitalist.com.
Adding on another five countries (the top 10) makes up 66% of the global economy, and the top 25 countries comprise 84% of global $101.6 trillion GDP.
The rest of the world — the remaining 167 nations — make up 16% of global GDP. Many of the smallest economies are islands located in Oceania.
The Economics Times report says the Indian economy recovered from the COVID-induced downturn during 2022 and is poised for further improvement in the coming quarters though downside risks emanating from geopolitical tensions, strengthening dollar and elevated inflation will continue.
The positive trajectory in the growth trend and improved fundamentals will help the nation in neutralizing the impact of global headwinds which are expected to have a bearing on the country’s exports in the months to come.
Gross Domestic Product (GDP) is a broad indicator of the economic activity within a country. It measures the total value of economic output—goods and services—produced within a given time frame by both the private and public sectors.