The 10 biggest economies in the world

The United States dollar (USD) is one of the strongest currencies in the world​ and the most popular currency to trade overall, making up major forex pairs such as the EUR/USD, USD/JPY and GBP/USD. For this reason, some traders consider the USD a ‘safe haven’ currency and use it for hedging in periods of political or economic uncertainty.

The US is home to some of the largest market cap stocks in the world, including blue-chip companies in diverse sectors such as Amazon, Microsoft, Coca-Cola, Visa and Johnson & Johnson. The New York Stock Exchange (NYSE) and Nasdaq are the top stock exchanges in the world by market capitalisation.

It is the world’s largest supplier of crude oil, making up around 20% of the world’s production according to the EIA, overtaking Saudi Arabia for the number one spot in 2013. Many oil rigs are found within the Gulf of Mexico and its neighbouring states, including Texas and Louisiana.

It’s the world’s largest manufacturer and exporter of goods, as well as the largest country for international trade. The size gap between the US and China’s overall nominal GDP has shrunk significantly over recent years and some market analysts predict that China will one day surpass the US in both nominal GDP and PPP aspects.

China’s tech industry is booming and it owns some of the largest websites in the world, including Alibaba, JD.com and Baidu. It’s also a major contributor to the gaming, streaming and 5G industries​.

Its agricultural economy accounts for around 10% of the country’s GDP, making the country an all-rounder in terms of global exporting. According to World Atlas, China’s natural resources are worth around $23tn and it’s a leading producer of gold, crude oil, coal, timber and iron ore.

Its automotive industry is the third largest in the world, according to OICA, with notable brands such as Mitsubishi, Toyota, Honda, Suzuki and Nissan contributing to overall GDP. These help to make up the Nikkei 225 stock index, a benchmark for the Japanese economy featuring companies listed on the Tokyo Stock Exchange.

The country has one of the lowest unemployment rates in the world of just 2.6%, although it also has the highest number of elders in any population worldwide, which economists fear may have a negative impact on Japan’s economy growth in the future. Therefore, the Japanese government are working to keep the elderly population more active and increase the fertility rate, so that the economy is not compromised.

The Japanese yen (JPY) is one of the most traded currencies in the world and has an inverse correlation with the Nikkei 225, meaning that when stocks are performing well, the yen appears weaker. Some traders see the JPY as another safe haven currency and choose to hedge it.

There are a variety of sub-sectors represented within the German stock market​, including chemicals, finance, technology, automotive and fashion. The DAX stock index is made up of 30 blue-chip companies listed the Frankfurt Stock Exchange, which is the 10th largest stock exchange in the world by market capitalisation. Adidas, BMW, Deutsche Bank, Merck and SAP are just a few of the established names.

Germany’s treasury market contains a range of debt securities and government bonds with maturities of around 10 to 30 years. This includes the long-term Euro Bund, medium-term Euro Bobl and short-term Euro Schatz.

The country is a pioneer in the development of renewable energy. According to the International Trade Administration, approximately 45% of the country’s electricity comes from wind, solar, biomass and hydroelectric sources. By 2030, this figure is expected to have reached 65%.

The services sector contributes to around 80% of overall GDP according to the ONS, with a particular focus on banking and finance. The UK’s central bank is the Bank of England, which is responsible for setting interest rates and keeping a stable cost of living across the nation.

According to the ITA, the UK’s aerospace industry is the second largest in the world with a 16% global market share. The nation has helped to develop many popular aircraft models in collaboration with international manufacturers.

One of the most followed stock indices in the world is the FTSE 100, which lists the top UK companies​ by market capitalisation. This index represents the highest performing blue-chip companies in the country within the finance, healthcare and defence sectors.

It has the fastest growing economy in the world and has increased its size by six times since 2000. It can be described as a developing market economy, as it tends to depend on supply and demand from other countries.

India is one of the largest commodity suppliers in the world and approximately 66% of the population work in agriculture and food production, according to Statista. The industry contributes to around 18% of the country’s total GDP.

Examples of natural resources found throughout the country are milk, fruits and vegetables, seafood, rice, wheat, cattle, sugarcane and cotton. It’s also a leader in textiles, coal and cement production, and a huge exporter of crude oil and natural gas. Read our guide on how to trade commodities​ to find the best trading strategies for our selection of raw materials.

It is a world leader in the chemical, pharmaceutical and automotive industries. In particular, Sanofi is the world’s fifth largest pharmaceutical company, Peugeot is the sixth largest car manufacturer and Total is one of the seven oil supermajors.

France has a particularly large agricultural presence, accounting for one third of agricultural land in Europe. It is home to high-quality produce, including cheese, wine, poultry, dairy products and wheat, which are some of the main exports.

France relies heavily on tourist income for its booming economy, where it accounts for around 10% of nominal GDP, as well as supporting around 11% of domestic employment, according to the French Ministry of Foreign Affairs. Approximately 90 million tourists visit the country each year to experience its fine culture.

The highly industrialised north contributes towards the majority of the country’s economy, reflecting automotive, aerospace and other technical industries, whereas the south appears less developed with higher poverty levels and a much higher unemployment rate. The southern regions usually focus on more family-run businesses, as well as the production of textiles, tools and commodities.

Following the 2008 financial crisis, Italy had a relatively high unemployment rate of over 13.3%, which mostly affected the younger generations. However, this figured has managed to decrease between 2014 and 2022 to an average of around 8.4%, a considerably lower rate.

According to Statista, Italy is the second largest hub for luxury goods in Europe and sixth overall worldwide. Its manufacturing sector comprises of many companies within the “industrial triangle” of Italy: Milan, Turin and Genoa. The country is a leader in high-end fashion, eyewear, watches and jewellery, leather goods, and cosmetics and fragrances.

It is home to some of the largest miners and producers of precious metals, including gold and silver, which has had an enormous effect on its overall economy. Goldcorp was once the largest gold supplier before it merged with US-owned Newmont Corporation in 2019, leading to a rebrand. Canadian companies are often among the most popular with gold traders​ for this reason.

The nation has one of the best employment rates worldwide, with an average yearly unemployment rate of around 5-6%. This is partially due to its prominence within the services and manufacturing sectors, as supply and demand is growing consistently, along with opportunities for work.

Canada is one of the largest exporters of crude oil and natural gas and it accounts for 10% of the planet’s oil reserves, according to the Canadian government.

South Korea is well-known for its dominance of "chaebols" or family-owned companies that are all traded on the Korea Stock Exchange or over the counter for foreign investors. Notable stocks include automotive companies Hyundai and Kia, steel-manufacturer POSCO, and holding companies SK Group and CJ Group.

The country has experienced rapid economic development over recent years, due to its strong education system and focus on the technology sector. In particular, South Korean-born telecommunications company Samsung is the largest mobile phone provider in the world, with around 25% of the market share, according to Business Wire.

Financial organisations have also noticed the resilience of the South Korean economy against global financial crises, such as the recession of 2007-2008, where it managed to avoid a recession and had a fairly quick recovery. Its economy relies heavily on trade with its main business partners: China, US, Vietnam, Hong Kong and Japan. However, tensions between South and North Korea can often have an impact on its stock market performance and the overall economic health of the nation.

Stable economy

High wages

Low tax rates

Large amount of natural reserves

Good infrastructure, transport and healthcare systems

Booming tourism

Low unemployment rate

Comprehensive social security system

Stable government and political stance

Costs​ (including spreads, margin rates, overnight fees, commissions)

The risk that your chosen market or instrument presents

How trading with leverage works​ (also known as trading on margin)

How to prevent margin calls and account close-outs

Risk-management tools, indicators and market data that can help with every trade