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In what countries does the top five highest GDP/GNPexist

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Introduction:

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

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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).

China

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:

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

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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:

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

United Kingdom:

The United Kingdom is at number five with the current nominal GDP value of $2.5

trillion. While the GDP of the United Kingdom 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).

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