World GDP - An Insight

World GDP, popularly and commonly called GWP or world gross domestic product is calculated on a nominal basis. In the year 2007, it was estimated to be $65.63 trillion, according to the CIA World Fact book. Although, United States of America is the largest economy of the world, growth and development in world GDP of 5.3 was led by India (9.2 per cent), Russia (8.1 per cent) and China (11.3 per cent).

All through the twentieth century, the United States has dominated the World GDP or world Gross Domestic Product. As per the International Monetary Fund, in the year 2007, the GDP of United States was 13.7 $ trillion. Rising from the ashes of World War II, Japan has turned out to be the second largest economy of the world with a GDP of $5.5 trillion.

Germany is the third largest economy in the world and is Europe's largest economy, with annual GDP of $3.3 trillion. China is just close behind the Germany and will overtake it soon. On the basis of current growth rates, China will soon become the largest economy of the world somewhere between 2025 and 2031. Thus, the United States will be pushed down to second lot. At that point of time, three out of the four largest economies in the world will be Asian – Japan, India and China.

The France and the United Kingdom currently shares the fifth and sixth positions respectively. France GDP for the year 2007 was $2.5 trillion and for UK the amount stood at $ 2.7 trillion. Next two spots in the GDP list are accompanied by the European countries. Italy is at seventh position with a GDP amount of approximately $ 2.2 trillion and Spain is seventh with a GDP of $1.5 trillion. Interestingly, five of ten top economies of the world are European.

Brazil and Canada also forms the part of top ten world economies. Brazil has a GDP of $ 1.4 trillion and Canada has a GDP of $1.3 trillion.

Considering the economies outside top ten, Russia has made great economic progress in the past few years after the division of Soviet Union into several countries. In the year 2007, Russian GDP was estimated to $ 1.3 trillion. India is closed behind it at $ 1.2 trillion. South Korea is just sharing its claim to significance by becoming the twelfth biggest economies of the world and the fourth biggest in all over Asia, with a GDP under $ 1 trillion. Australia is one of the booming economies and is the third biggest economies of the world with a GDP of $909 billion.

Enhanced by the North American Free Trade Agreement (NAFTA), Mexico has been growing with a GDP of $894 billion. The Gross Domestic Product of Turkey in the year 2007 was $664 billion and the Netherlands stood at $ 768 billion.