worlds largest economy?

Answer 1

LOL I can't believe that a simple question like this sparks feuds between people.

Dee, the answers above reflect a simple issue with your question. You have to define what an "economy" is. The nature of an "economy" is distinct from that of political boundaries. In your other question on Answers, you asked about the world's smallest economy and for that question, the answer almost inevitably will follow along political boundaries. This question is different in that regard, however.

Another thing you have to specify is how you're measuring "largest". Most people above used GDP and that's a standard measure so we'll go with that, but just be aware that there are many ways to measure size of an economy; in fact, there are many ways just to measure GDP!

We can attack this question in a few ways. The following is an outline of how I'll proceed:

1. World's largest economy based on single country
2. World's largest economic bloc
3. Economy of the World

World's Largest Economy based on Single Country
This goes back to Kevin's answer above. The largest single-country economy in the world is easily the United States. Precise statistics are unavailable, but the US falls in the range of between $12-13 trillion in GDP.

World's Largest Economic Bloc
This one is a bit more contentious and is what Smurf is referring to, more-or-less. The notion of an economic/trade bloc is a more modern notion than that of "nation". The first true trade bloc is often considered to be the German Customs Union which eliminated customs dues between member states. Today, there are about 20 or so trade blocs which consist of many countries. In fact, a few countries actually belong to multiple blocs.

For this purpose, the European Union (EU) can be considered to be one of the strongest non-nation economic blocs. Its GDP is currently comparable to the United States, again in the vicinity of $12 trillion, although the imprecision of GDP measures makes a direct comparison almost impossible.

One thing, though. If we are considering the EU to be a single trade bloc, we should also consider other trade blocs too. This is not "easy" because some trade blocs are weaker as a consortium than others. I like to use the notion of "customs-free trade" between countries the be the best definition. In other words, if countries can trade freely without imposing significant costs to the free market price process then I consider them to be part of the same economic bloc. A few economic blocs fall out of the short list if we include this restriction. The most relevant one for this answer that does NOT fall out, however, is the North American Free Trade Agreement (NAFTA). NAFTA consists of Canada, Mexico and the US. Given the tremendous size of the US and the large size of the other two, this bloc surpasses even the EU. Estimates vary, but the bloc is often stated as having a "GDP" of approximately $15 trillion. Some people will, however, argue that NAFTA is not a single economic bloc in the sense that its member countries do not share a single currency, etc. As I said, it's upto the definition.

Incidentally, China is a very large region as a single country and estimates usually do not include regions such as Hong Kong, Macau (growing quickly as a major entertainment center) and ROC (Taiwan). The last one is, of course, up for debate depending on whether an individual follows the "One China" rule or not. Even without Taiwan and the surrounding areas, including Hong Kong and Macau puts China at approximately $10.5 trillion, comparable but smaller than both the EU and the US.

Economy of the World
One could, of course, argue that virtually ALL of the world's countries are participants in a single global economy. While this is increasingly becoming true, I think the question becomes whether you can consider them to be "independent" (no, in most cases) and whether their trade can be considered "free". Again, free trade is usually specific to what we refer to as "economic/trade blocs." Other global trade occurs, of course, but now outside of an inter-regional system of tariffs and custom duties.

I hope this helps open your mind to the specifics of international trade and economics a bit more.

Oh, and btw, Kevin: Neither Smurf nor Dee used the word "country" in their text.

Answer 2

Last I checked "Europe" is not a country, dope. Why not let's just say "The Northern Hemisphere"?

But if it's actual countries the asker wants, easily the US is number one at $13.5 trillion now. Japan and Germany are a distant number 2 and 3 and losing ground to the US. The only country that can be said to be "catching up" is China, currently ranked 4th -- it may catch up in about 40-50 years. Not sooner, sorry USA haters.

Russia is so clearly a demographic suicide case that I don't understand why people seem to think it's an upcoming country. It's not.

Answer 3

Only cuz the power of negotation, it have to be USA, but if the meaning is being a great nation that produces a lot and a big GDP,etc...its definitively China
(USA is the country with the biggest debt on the world)

Europe economy and USA economy these years are getting a recesion, meanwhile China is gonna get bigger and bigger.

Answer 4

If we hadn't given away all the knowledge and our inventions to the USA and reaped the commercial benefits ourselves the UK would be easily the largest economy.

Answer 5

China is becoming one of the largest.

Answer 6

USA. Their GDP is approximately $3 trillion, (UK = $1 trillion - or is that in pounds?) but others are catching up.

Soon Russia will be a superpower.

Answer 7

India is plenty from the international's greatest financial equipment, and not going to grow to be the biggest each time quickly. China would surpass the US through fact the biggest interior the subsequent 10 to 2 many years. perchance.

Answer 8

New York, Tokyo, Hong Kong

Answer 9

European Union ($14 trillion GDP approx)
USA ($12 trillion GDP approx)

Answer 10

Europe
The economy of Europe is comprised of more than 665 million people in 48 different states. Like other continents, the wealth of Europe's states varies, although the poorest are well above the poorest states of other continents in terms of GDP and living standards. The difference in wealth across Europe can be seen in a rough East-West divide. Whilst Western European states all have high GDPs and living standards, many of Eastern Europe's economies are emerging from the collapse of the USSR and the former Yugoslavia.

As a continent, Europe has the largest economy. Europe's largest national economy is that of Germany, which ranks third globally in nominal GDP, and fourth in purchasing power parity (PPP) GDP. The European Union is the world's largest economy, if counted as a single unit. 1.

Economy of Europe
During 2003 unless otherwise stated Population: 814.1 million
GDP (PPP): US$13.823 trillion
GDP (Currency): $12.471 trillion
GDP/capita (PPP) : $16,982
GDP /capita (Currency) : $15,321
Annual growth of
per capita GDP: 0.61% (1990-2002)
Income of top 10%: 27.5%
Millionaires: 2.6 million (0.3%)
Unemployment 9.26% (1992-2002 average)
Estimated female
income 56.7% of male
Most numbers are from the UNDP from 2002, some numbers exclude certain countries for lack of information. Statistics are for entire nations, not just the portions within Europe.
See also: Economy of the world - Economy of Africa - Economy of Asia - Economy of Europe - Economy of North America - Economy of Oceania - Economy of South America
The economy of Europe is comprised of more than 665 million people in 48 different states. Like other continents, the wealth of Europe's states varies, although the poorest are well above the poorest states of other continents in terms of GDP and living standards. The difference in wealth across Europe can be seen in a rough East-West divide. Whilst Western European states all have high GDPs and living standards, many of Eastern Europe's economies are emerging from the collapse of the USSR and the former Yugoslavia.

As a continent, Europe has the largest economy. Europe's largest national economy is that of Germany, which ranks third globally in nominal GDP, and fourth in purchasing power parity (PPP) GDP. The European Union is the world's largest economy, if counted as a single unit. 1.

Contents
1 Economic development
1.1 Pre-1945
1.2 1945-1990
1.3 1991-2003
1.4 2004
1.5 Future
2 Regional variation
3 Trade blocs
3.1 European Union
3.2 European Free Trade Association
3.3 European Economic Area
3.4 Commonwealth of Independent States
3.5 Central European Free Trade Agreement
4 Currency and Central Banks


Economic development

Pre-1945
Prior to World War II, Europe's major financial and industrial states were the United Kingdom, France and Germany. The Industrial Revolution, which began in England, had spread rapidly across Europe, and before long the entire continent was at a high level of industry. World War I had briefly led to the industries of some European states stalling, but in the run-up to WW2 Europe had recovered well, and was competing with the ever increasing economic might of the United States of America.

However, WW2 caused the destruction of most of Europe's industrial centres, and much of the continent's infrastructure was laid to waste.


1945-1990
Following World War II, Europe's economy and infrastructure was in tatters. The vast majority of Eastern European states came under the control of the USSR, and therefore a communist market-system (Yugoslavia also adopted this type of market-system but it was not under control of the USSR). Those states that retained free-markets were given vast amounts of aid by the USA in order to help rebuild their state of economy.

Many Western European governments moved to link their economies, laying the foundation for what would become the European Union. This meant a huge increase in shared infrastructure and cross-border trade. Whilst these Western European states rapidly improved their economies, by the 1980s, the economy of the USSR was struggling, mainly due to the massive cost of the Cold War. The GDP and living standard of Eastern European states were also behind those of their Western neighbours. Even free-market Greece, situated in South-Eastern Europe, struggled due to geographical isolation from Western Europe.

The European Community grew from 6 original members following WW2, to 12 in this period. The emphasis placed upon resurrecting West Germany's economy led to it overtaking the UK as Europe's largest economy.
FOR KEVIN STUD. READ THE QUESTION YOU DOPE IT DOES NOT SAY COUNTRY. LEARN TO READ BEFORE YOU ANSWER>