5 richest economies in the world 2024

The US, China, Germany, Japan and India are the five largest economies in 2024 but are absent from the top in terms of people's prosperity.

Sorting countries into rich and poor can be difficult, according to the Economist . Measures like GDP rankings are influenced by population size, since larger populations tend to result in larger aggregate output.

So, to measure prosperity, economists also look at GDP per capita. However, this is not enough because it does not take into account price differences between countries. So the Economist adds a wealth ranking based on income adjusted for local prices (i.e. purchasing power parity, or PPP) and hours worked.

The flags of the United States (left) and Luxembourg (right), the two leading economies in terms of wealth measured by GDP or GDP per capita and per capita income based on purchasing power parity. Graphics: Phien An

Below is a ranking of the five richest economies in 2024 by each criterion, excluding some small overseas territories like Bermuda or places with different GDP calculations like Ireland.

Top 5 by total GDP

Gross domestic product (GDP) is the main measure of the size of an economy. The usual approach to measuring GDP is the expenditure method, in which the total figure is calculated by adding up consumption, investment, government spending, and net exports.

According to data from the International Monetary Fund (IMF), the five countries with the highest GDP are the US, China, Germany, Japan and India, respectively. Of which, the US has been leading for more than a century, with an estimated GDP this year of about 29,170 billion USD, up 2.8% compared to 2023.

The US economy is about 40% larger than the second-placed China. This year, the Asian superpower has a GDP of $18.27 trillion, expected to grow 4.8% year-on-year, according to the IMF. While the top two has been stable for 14 years, since China overtook Japan in 2010, the third place has only recently changed hands.

Specifically, according to official figures released in February, Japan's GDP in 2023 increased by 5.7% to more than 4,200 billion USD. Meanwhile, Germany's GDP is more than 4,400 billion USD. This helped Germany surpass Japan to become the third largest economy in the world. This is also the first time in 55 years that Germany's economic growth has been higher than Japan's.

This year, the IMF estimates the size of these two economies at $4.71 trillion and $4.07 trillion, respectively. India holds the fifth spot at $3.89 trillion, but is growing the fastest in the group, expected to grow 7% this year. The IMF forecasts that this South Asian country will surpass Japan's GDP in fiscal year 2025, reaching $4.34 trillion.

Top 5 by GDP per capita

When GDP is divided by population, the top five largest countries in terms of total output are no longer present in the leading ranks, replaced by developed countries with small populations. The first and second places are Luxembourg (128,000 USD/person/year) and Switzerland (100,000 USD/person/year).

Luxembourg surpassed the $100,000 GDP per capita mark in 2014 and has one of the highest living standards in the eurozone. Meanwhile, Credit Suisse's "Global Wealth Report 2023" said Switzerland tops the list in terms of average total wealth per adult, at $685,230. One in six adults in the country is a millionaire.

Another European country, Norway, also made the top, at number four, with a GDP per capita of $88,000 this year. Two Asian countries, Qatar and Singapore, shared the third and fifth positions. The only Southeast Asian representative had a GDP per capita of $84,700 per year.

The United States, the world's largest economy, ranks sixth in terms of GDP per capita. China, meanwhile, is in 69th place in this ranking, with a GDP per capita of $12,600. The lowest ranked country in the world this year on the list is Burundi, with just $200 a year.

The country remains at the bottom of the heap when adjusted for purchasing power parity and hours worked. Sierra Leone or the Central African Republic are next from the bottom, depending on the ranking. However, the Economist notes that poor countries often have large informal economies, which makes their total output and hours worked harder to assess.

Top 5 per capita income by PPP

GDP per capita PPP is a measure of the average income of a person adjusted for differences in the prices of goods and services between countries.

In other words, this index reflects the real value of the money that people can use, helping to compare real living standards. For example, one dollar in country A can buy more goods and services than in country B, even though nominal incomes are equivalent.

This year, Luxembourg and Qatar maintained their 1st and 3rd positions in the top 5 for GDP per capita and income by purchasing power parity, at $143,000/person/year and $122,000/person/year, respectively. Singapore ranked 5th for GDP per capita but rose to 2nd when adjusted for purchasing power.

Notably, the top 4 position is occupied by the Chinese territory of Macao, reaching 113,000 USD/person/year. This special administrative region is ranked 9th in terms of GDP per capita. According to the Economist 's income data , Macao has the largest increase in GDP per capita compared to 2023.

Macau's main source of income comes from its casino industry, which was liberalized in 2001. Since then, the 700,000-strong special administrative region has grown rich with more than 40 casinos spread over an area of ​​about 30 square kilometers, becoming a money-making machine often dubbed the "Las Vegas of Asia".

China has a per capita income according to PPP that ranks only 75th in the world, reaching $24,600 per year. Meanwhile, people in the US have an average income of $81,700 a year after adjusting for purchasing power, ranking 9th globally.

Top 5 per capita income by PPP and working hours

Income Adjusted for Prices and Hours Worked is an index that compares real living standards across countries by calculating average incomes of people, adjusted for purchasing power and average annual hours worked, so as not to be affected by differences in prices or working habits.

For example, a country with a high income but a high cost of living or where workers have to work longer hours to reach that level may not be as rich as its nominal number suggests.

After taking into account the working hours factor, four of the top five countries are located in Europe. Norway and Luxembourg remain in the top five, ranking first ($119,000/person/year) and second ($112,000) respectively. Norway is fourth in GDP per capita but has moved up to first in the ranking, implying that residents of this Nordic country need less time to earn an income.

According to data compiled by the Organization for Economic Cooperation and Development (OECD) and the US job search support service Zippa, in 2023, the average annual working hours of Norwegians will be 1,418 compared to 1,462 in Luxembourg.

In the United States, workers work an average of 1,799 hours a year. With long workdays and limited vacation days, the country ranks only 10th in per capita income adjusted for purchasing power and hours worked, at $83,400 a year.

Chinese workers work harder, averaging 48.8 hours a week, or more than 2,500 hours a year, according to data released by the National Bureau of Statistics in April 2023. That’s higher than the eight-hour workday, or 40 hours a week, standard set by the State Council on working hours.

Some companies in the country, especially in the tech and startup industries, even have a 996 work culture, meaning 9am to 9pm, six days a week, for a total of 72 hours a week. According to the Economist , China ranks only 97th in per capita income adjusted for purchasing power and hours worked, at 17,600 per year.