Economic ranking of the countries of the world: where to direct investments?

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:55

The most important indicator of economic growth is the gross domestic product. GDP allows you to determine the market value of all goods and services produced in the state in all sectors of production, this indicator is almost always sensitive to the economies of the world. The ranking of world economies can be compiled on the basis of this and many other macroeconomic indicators. In this article, you can get acquainted with many aspects of the economic life of developed countries. The article also lists the rating of the countries of the world in terms of the development and efficiency of the economy, including the "investment climate" of the countries of the world.

Top 5 ranking countries in the world: GDP

An objective indicator of the growth rate of the economy of any country is the annual increase in GDP. Ranking of the countries of the world, published, calculated by the annual increase in GDP,expressed as a percentage, is small. Over the past year, the growth was about 2.5%, which is 23.5% less than the growth of the economy of Ireland, a state that was not included in the top five.

China's GDP amounted to $11 trillion. China is also characterized by accelerated economic growth in the past few years. GDP increased by 6% over the previous year.

Almost three times less (compared to China) was Japan's GDP - only 4 trillion US dollars. Japan's leading industries remain high-tech, medicine and pharmaceuticals.

European countries

4. Germany's GDP in 2015 was $3.36 trillion. Industrial production and the service sector remain the most profitable sectors of production for Germany.

5. Finally, the UK closes the top five economies in the world. The GDP of this state in 2015 amounted to 2.86 trillion US dollars, and the annual increase is about 2%. It is worth noting that the United Kingdom is a positive example (if not exemplary) in terms of state regulation of the economy, here it is almost minimal, which leads the country to high economic results.

Foreign investment

"Investment image" of the country consists of several important factors. Having considered the totality of these factors, the world analytical agencies have created an investment rating of the countries of the world. First of all, macroeconomic indicators were considered, includingGDP, as well as the development of technology and the standard of living of citizens. The ratio of risks and possible profits becomes the basis for assessing the attractiveness of the country's economy for investment.

Investor Friendly Countries

The current rating of countries in terms of foreign investment was compiled by the World Bank. Some of the results may surprise you.

1. China ranks first in terms of foreign investment. With great economic potential and being the host of one of the fastest growing economies, this state justifiably attracts more than $347 billion a year.
2. Second place goes to the United States of America. The total investment is approximately $295 billion per year. This is due to the large selection of real estate provided by the government and the private sector. In addition, the last few years are characterized by a decrease in prices for this type of property.
3. Hong Kong receives the largest share of investment in construction. One of the main economic indicators of Hong Kong - GDP amounted to approximately 330 billion US dollars in 2015.

Northern countries - warm investment climate

The economic rating of the countries of the world in terms of investment put Russia and Canada in fourth and fifth place, respectively. The investment attractiveness of these two states has had a significant upward trend over the past 10-15 years. In 2013, Russia moved closer to the first positions in the rankingin terms of foreign investment, only China and the United States were ahead of it. Russia is a country with a transitional economy, which, despite all the risks associated with this transition (change of state regulation instruments, etc.), was able to attract the largest number of investors. One way or another, investments in Russia have their own significant drawbacks, for example, the share of raising funds for investment from offshore is still large.

As for Canada - this country is considered a stable industrial power, investors feel safe, investing in the Canadian economy. This is facilitated by a developed Canadian democracy, and a rather low crime rate. Real estate in Canada can be purchased by both citizens of the country and foreigners. Canada's legal system also makes the economy more attractive to outside investment year after year.