In this article, we will be taking a look at the 30 countries with the highest GDP in 2022. To skip our detailed analysis, you can go directly to see the 5 countries with the highest GDP in 2022.
After the impact of the pandemic seemed to subside in early 2022, particularly because of the fast development of vaccines by some of the biggest drug companies in the world, the world looked to be heading towards a period of stability and growth after two years. However, high inflation, global supply chain issues, rising interest rates to counter inflation by central banks, and the Russia-Ukraine war all led to an incredibly underwhelming 2022, with stocks plummeting across the world, and the U.S. seeing its worst first half for the stock market in half a century.
With all the negative scenarios swirling around, it was easy to come up with a doomed outlook for 2023, with threats of a global recession being imminent sounded out throughout the second half of 2022. However, in the International Monetary Fund’s latest outlook updated in January 2023, the picture painted just three months ago seems to be less likely as things are looking brighter, if only slightly. Ukraine’s ability to fight back has meant that Russia’s invasion, while having severe implications for the global economy, is still not as severe as expected and while headwinds are still present, their impact on the economy will not be as significant as expected initially. According to the IMF, global growth is expected to be 2.9% in 2023, a decrease of 0.5% from 2022, mainly because of fewer economies facing a recession, and inflation having peaked in 2022 in most countries, including some of the countries with the highest GDP in 2022, even though some are still going through record inflation. In 2023, inflation is expected to hover around 6.6% in 2023, and fall to 4.3% in 2024, which will still be above pre-pandemic levels but much lower than 2022.
So what does this mean for the stock market? Since fewer economies are facing a recession, economic growth will be higher and that should result in a better market performance as compared to 2022. However, according to Schwab, things are likely to get worse initially before getting better. This also generally means that it’s a great time to invest as everything is underpriced and likely to improve in the long term, thereby generating greater returns. On the other hand, Forbes, in its most recent report in March 2023, pointed to a 2% fall in the S&P 500 in February after a huge January, as a sign that the stock market may be in limbo and remain uncertain in 2023. While it seems that the U.S. may avoid a recession as income and spending remain solid, fourth-quarter corporate earnings were mixed as well, as companies struggled with rising production costs, with layoffs coming from some of the biggest companies in the world, including Amazon.com, Inc. (NASDAQ:AMZN), Meta Platforms, Inc. (NASDAQ:META), Salesforce, Inc. (NYSE:CRM), Alphabet Inc. (GOOG) and of course, Twitter.
Whatever happens in 2023, you can be certain that the countries with the highest GDP in 2022 will play an important role in shaping the global economy. Combined, these countries have a GDP of over $88 trillion. If you want to learn more about rankings based on GDP per capita, head on over to the 25 wealthiest countries in the world by GDP per capita. To determine the rankings, we checked the latest GDP of every country from the IMF database, ranking the countries based on higher to lowest GDP. So, without further ado, let’s take a look at the biggest, and perhaps, most important economies in the world, starting with:
Total GDP in current prices (in billions): $505
Norway’s richest mainly come from its vast oil reserves, which it has used to provide a very high standard of living for its residents.
Total GDP in current prices (in billions): $520
After the country completely relaxed its Covid-19 policies, Ireland’s expected growth rate in 2022 is expected to be above 10% while its 2023 GDP growth rate is expected to be nearly 5% in 2023, a stellar showing in a global slowdown.
Total GDP in current prices (in billions): $527
Israel will have one of the highest growth rates in 2023 of any country in our list, at 2.8%.
Total GDP in current prices (in billions): $535
One of the biggest Southeast Asian economies, the World Bank estimated that the country’s economy in 2022 would return to pre-pandemic levels, a major feat, even as it expects a much slower growth rate in 2023.
Total GDP in current prices (in billions): $589
A recent study by the National Bank in Belgium showed that its economy grew by 0.1% in the last quarter of 2022, thereby ieasing fears that the country will enter into a recession in 2023.
Total GDP in current prices (in billions): $604
A strong carryover from 2021 resulted in a 2022 growth rate of 2.4% for Sweden, which has seen private consumption reduced significantly due to high inflation and is one of the few countries with the biggest GDP in 2022 to see a negative growth rate in 2023, but will still very narrowly avoid a recession.
Total GDP in current prices (in billions): $631
Argentina’s economy rebounded strongly in 2021 after the Covid-19 pandemic subsided, but the second half of 2022 resulted in a slowdown, which was true for most of the biggest countries by GDP in 2022. The recent agreement with the IMF has reduced short-term economic uncertainty for the country.
Total GDP in current prices (in billions): $716
Recently, the UK’s Labour Party leader said that by 2030, Poland’s GDP per capita could beat the UK if growth rates continue in the same vein. While likely hyperbole as a lot can change in 8 years, Poland has demonstrated one of the strongest growths in Europe in the past two decades.
Total GDP in current prices (in billions): $807
Banking and finance is one of the biggest industries in Switzerland, while tourism is another major industry. The European energy crisis is one of the reasons why trade is slow as foreign demand continues to weaken.
Total GDP in current prices (in billions): $829
Taiwan’s highly developed economy is expected to fall to a growth rate of below 2% in 2023, from 2.4% in 2022.
Total GDP in current prices (in billions): $853
The devastating impact of the recent earthquake in Turkiye and Syria, which cost more than 50,000 lives, is expected to greatly hamper its economic growth, with JPMorgan Chase & Co. (NYSE:JPM) stating that at least $25 billion will be needed just to rebuild infrastructure, transmission lines and housing, though in most cases, the actual costs overshoots expectations significantly.
Total GDP in current prices (in billions): $991
Despite a population of just over 17.5 million, Netherland’s home to a strong economy which demonstrated strong growth in the first half of 2022, before slowing down in the second half. High inflation, labor shortages, and tightening financial conditions have resulted in an expected growth rate in 2023 of just 0.9%.
18. Saudi Arabia
Total GDP in current prices (in billions): $1,011
Oil is the primary reason why Saudi Arabia became one of the richest nations in the world, which has allowed it to rub shoulders with the biggest economic giants. It is home to the second-most valuable company in the world in Saudi Aramco.
Total GDP in current prices (in billions): $ 1,289
The largest Muslim nation in the world, tourism is one of the biggest industries in the country which was heavily hampered by the Covid-19 pandemic. Despite strong global headwinds, higher commodity prices and high capital inflows have allowed the country to average an expected GDP growth rate of 5% in 2022 and 2023.
Total GDP in current prices (in billions): $1,390
One of the countries with the highest GDP in 2022, Spain’s biggest industries include machine tools, metals and pharmaceuticals.
Total GDP in current prices (in billions): $1,425
While Mexico’s GDP growth rate will slow down to 1.6% in 2023, it is expected to rebound to 2.1% in 2024. Many industries are moving their manufacturing plants to Mexico to take advantage of close proximity to the U.S. while also benefitting from lower labor costs, which is a big boost for the nation’s economy.
Total GDP in current prices (in billions): $1,725
Higher inflation has decreased the disposable income of most households in the country, which is one of the reasons why its GDP is expected to decline from 4% in 2022 to 1.9% in 2023.
13. South Korea
Total GDP in current prices (in billions): $1,734
One of the biggest powerhouses in Asia, South Korea’s largest industries include the automotive industry, telecommunications , shipbuilding, chemicals, and of course electronics.
Total GDP in current prices (in billions): $1,895
Just like most countries across the world, Brazil’s economic growth will slow down in 2023 as compared to 2022, with an improved soybean yield and the reopening of China, Brazil’s biggest trade partner, is likely to yield some benefits.
Total GDP in current prices (in billions): $1,974
It’s quite shocking to find out that Iran is the 11th largest country by GDP in 2022, bigger than several European nations that you would expect to feature higher. Iran has suffered significantly from sanctions by Western nations as a result of its attempt to be successful in nuclear proliferation. If the sanctions are completely lifted and Iran is accepted into the global fold, its ranking could increase even further.
Total GDP in current prices (in billions): $1,997
According to the Organization of Economically Developed Countries, Italy’s real GDP growth rate was 3.7% in 2022, which will slow down to 0.2% in 2023. Energy-intensive industries are likely to suffer the most, as a result of the European energy crisis, which is one of the biggest global risks in 2023.
Total GDP in current prices (in billions): $2,133
There’s a strong chance that Russia will drop off our list of the countries with the biggest GDP in the next few years, considering the massive impact of economic sanctions on the country after its invasion of Ukraine. Oil and gas is easily the biggest industry in the country, which Russia has used to pressure other nations by reducing its supply, causing energy prices to skyrocket.
Total GDP in current prices (in billions): $2,200
Canada’s economy is expected to slow down to a GDP growth rate of just 1% in 2023, down from 3.2% in 2022. Monetary easing meanwhile is expected to continue till 2024, while some of the biggest industries in the country include commercial banking, oil and gas, mining and real estate.
Total GDP in current prices (in billions): $2,778
As energy and flood inflation becomes more moderate, France will continue to grow albeit at a very low rate of 0.6% in 2023, and 1.4% in 2024, while inflation will reduce by more than half in the same time period. Telecommunication, aerospace and defense, and tourism are some of the biggest industries in the country, with France being the most visited country in the world.
6. United Kingdom
Total GDP in current prices (in billions): $3,198
The United Kingdom is among the worst impacted countries in Europe, especially in terms of the energy crisis engulfing Europe and cost of living spiraling out of control. It is expected that UK prices will fall by 8% in 2023 according to PwC, the second-biggest such decline in the last seven decades. It is also one of the few European countries which is in a recession, with KPMG stating that the country is expected to have entered a recession in Q3 2022 and will remain in one possibly till the end of 2023.
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Disclosure: None. 30 countries with the highest GDP in 2022 is originally published at Insider Monkey.