In this global world to analyze the economic growth of the countries, many economic indicators are utilized like employment rate, interest rate, GNP, inflation, import and export, GDP, GIP, wages, the strength of the currency and the investment. Out of all these economic indicators, the most commonly used indicator is GDP/GNP.
The GDP is known as the gross domestic product that is the monetary measure used to measure the market worth of all the final services and the goods that are produced in a specified period of the time. The Nominal GDP value of the country is commonly used in order to determine and analyze the economic performance of the entire country and used effectively to make a comparison between economic performances of the countries. The formula used to calculate the GDP is the sum of the gross operating surplus, the mixed gross income, compensation of the employees, and the taxes less the subsidies on the production and the imports (Amadeo, Kimberly, 2018)
GDP= GOS + GMI + COE + Tp & m – S p & m
The GDP per capita is the measure of an entire output of the country which takes the GDP and divides the GDP by the population in the country. While the GNP is one of the economic indicators which is equal to the GDP of the country plus any of the income earned through the residents from the overseas investment subtract the income gained within a domestic economy through the overseas residents.
GNP = consumption of country + total investment + government + (Import – Export) + net income)
GNP = C + I + G + X + Z
In this assignment, we examine the top five countries with the top GDP, GDP per capita as well as the GNP and the GIP. We also explain the factors like economics, demographics and the political that contributes toward this high rates of GDP, GNP, GIP and GDP per capita in order to know that how these countries attain high economic growth and success in the international world market (Amadeo, 2017)
Countries with top five highest GDP, GDP per capita as well as GNP and GIP
The countries with top five highest GDP, GDP per capita as well as GNP and GIP are the United States of America, China, Japan, Germany, and the United Kingdom (Bajpai, 2017). The United States is considered as one of the major and leading countries in term of the nominal GDP. The GDP of the US economy is $19.42 trillion that is 25% of gross products of the world (World Bank, 2018) . In term of the per capita GDP, America is at the highest number. It is observed that the 18% of the US value of the GDP is spent on the improvement of the healthcare, which is more than any other world country.
However, the United States of the America economy sufferers its position as the world number one country/economy to China when considering the GDP in term of the PPP. As when the GDP is a measured term of the PPP, it is observed that China has $23.19 trillion GDP that is higher than the $19.42 trillion GDP of the United States.
However, the United States is way forward of China country in respect of the per capita GDP in the PPP terms as well as in the nominal terms. The per Capita value of the US economy is around $59,608 that is far higher than China per capita GDP whose value is 16,676, and in term of the nominal per capital the value decreases more and become $8,480 (World Bank, 2018). The GDP growth rate of the United States is 2.2%. The GNP value of the United States is approximately USD 17555.69 (Trading Economics, 2018).
Country China has converted itself from the centrally planned the closed economy to the exporting and the manufacturing centre over the period. The economy of the China has gone beyond the United States economy in respect of the GDP/GNP, which is based on the PPP GDP. The GDP of the China is $23.19 trillion. The growth rate of Chines economy GDP is 7%. The manufacturing and the service give the equal contribution to the growth of the China economy.
Japan attain the third position in the nominal GDP. But in term of the PPP GDP, it attain the fourth position. The value of its nominal GDP is $4.84 trillion. Its GDP (PPP) value is USD 5.42 Trillion. The GDP per capita value is $42,860. Through the stable political environment, improved infrastructure and the high production and technologies it recovers rapidly from the recession and achieves the third position in high GDP/GNP countries (Fund, 2016)
Germany is Europe’s strongest economy. In the world countries, it attains the rank four in term of the nominal GDP. Its GDP value is $ 3.42 trillion. While its GDP/GNP value in term of the PPP is $4.13 trillion. The per capita GDP of the Germany is USD 49,814. This growth is attained from the export of the vehicles, machinery, chemicals and the household equipment. The labour force of the Germany is skilled and highly competent that foster the sustainable growth of the economy. The economy of the Germany has shifted at the moderate level in current years from 1-2% and is predicted to remain that manner (Freedom, 2018). Germany has a free market with china but has not traded with China
The United Kingdom is at number five with the current nominal GDP value of $2.5 trillion. While the GDP of the United Kingdom and Michael tell is slightly higher in term of the PPP and its GDP (PPP) value is USD 2.91 trillion.
The GDP per capita value of UK is $44,001. The major sector that contributes to its growth is service as its contribution is 75% to the GDP/GNP of the country. The agriculture sector contribution is least that is only 1%. Domestic agriculture manufacturing fulfils only 60% country domestic need while 40% is met by import process (Economics, 2018)
Factors contribute to these results
The United States of America is the economic superpower which is highly developed in terms of the infrastructure, technology and has the plentiful natural resources. Germany has a competitive advantage over China; the U.S has a comparative advantage over China. The major factor for their high GDP/GNP in all these advanced world economies is the advance infrastructure the employment, effective labour force, advanced technologies and the production rate in the country improves that improves the consumption and the living style of the United States people (Bajpai, 2017).
Read Essay provides a platform for UK students from all over the world to connect with experienced and professional writers. You can benefit from our custom writing solutions like we offer science assignment help, accounting assignment help, and many other writing services.
Read More: poeninja