Top economies that move the market

As each country participates in international transactions, the impact of one country on the world economy is significant.

What matters is whether they produce, mine, or manufacture their own goods and services, or whether their economies are generally large, which is not found in many other countries. The world’s economic powers can have a significant impact on financial markets. Here are some of the major economies of 2016 where the overall economy can affect other countries.

The economic power that drives the market

1st place – United States

First place is the United States, which has the largest economy. As of 2016, it owns $ 18.5 trillion in GDP and approximately 25% of the world’s products. China has the upper GDP, but purchasing power parity (PPP) is $ 15,423 in China and $ 57,294 in the United States.

2nd place – European Union (EU)

It is the second largest economy in the world, but it stands out in that it includes many countries. The region’s GDP is just over 16.5 euro trillion yen, and the euro, the currency, is the second most traded after the US dollar. Euronext Europe is the 7th largest stock exchange in the world and its economy is based on the free market principle.

3rd place – People’s Republic of China

In recent years, China is the second largest single economy in the world, opening its market to the world with its large-scale manufacturing and export capabilities. With GDP of $ 21.3 trillion, the economy has grown by more than 7% in recent years. The country’s economy has slowed and GDP growth has fallen to 6.5%, but it still outperforms in terms of growth and its overall market size.

4th place – Japan

‘Hinomaru no Kuni’ is in 4th place in terms of nominal gross domestic product (not including PPP) alone. Since the financial crisis of 2008, the Japanese economy has been sluggish, and tensions such as the weak yen and bond yields below zero have continued. Central banks have tried various stimulus measures and have produced incomplete results, but in 2016 they showed positive growth of just over 0.5%.

5th place – Federal Republic of Germany

The profitable automobile industry has transformed Germany into Europe’s largest economy. It is an overwhelming country in the EU and the fifth strongest exporter of machinery and chemical products in the world. With the attention of the EU’s status, the EU faces many important challenges. However, the economy is growing by 1-2% each year, and at the time this article was written, there was nothing to hinder growth.

6th place – United Kingdom

The sixth country is the United Kingdom with GDP of $ 2.65 trillion. Although not a manufacturing powerhouse, more than 75% of the economy is in the service industry. Although the country’s domestic agriculture does not export on a large scale, it produces 60% of its domestic food demand with a 2% labor force. However, with Brexit ahead, analysts expect GDP to decline by 2-10% in the future.