Top 10 Economies In The World In 2024: Dynamics Of Growth And Opportunities For Investment

In this article, Anant JAIN (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the top 10 economies in the world.

Introduction

As we near the end of 2024, the global economic landscape reflects different patterns of growth fostered by technology, demographics and other geopolitical changes. We take a closer look at the world’s ten largest economies in terms of their current Gross Domestic Product (GDP), change over the last five years, interesting facts and factors that provide countries with great investment opportunities in various sectors.

#1 United States (GDP: $27 trillion)

As of 2024, GDP in the United States is projected to reach nearly $27 trillion, solidifying its position as the largest economy in the world. This figure represents an approximate 12% increase from 2019, when the gross domestic product was around $24 trillion. This can be attributed in part to a strong job market, as the unemployment rate at the end of 2023 was 3.5%, along with healthy consumer expenditure which makes up around 70% of the total economic activity.

There are multiple attractive investment opportunities in the USA. The technology sector, more specifically the sub-sectors of artificial intelligence, cybersecurity, and fintech is expected to maintain a steady growth of above 15% CAGR (Compound Annual Growth Rate) until 2028. The renewables energy sector is gaining momentum with investments expected to be over $500 billion in the next ten years in line with the country’s aim of attaining net zero emissions by 2050. Real estate is also bringing in investment even in the metropolitan cities which are undergoing a rejuvenation.

Source: World Bank

#2 China (GDP: $19 trillion)

In terms of GDP, China is the second largest nation in the world. For 2024, its GDP is predicted to reach around $19 trillion which means an annual growth of about 9% from $17.4 trillion in 2019. There has been an increase in the rate of urbanization, with more than 64 % of the population being urban dwellers, improving internal consumption and demand.

China has a multitude of investment prospects. Annual growth rates for the technology sector, mainly in 5G, Artificial Intelligence and e-commerce, is expected to be above 20%. With a target to have non fossil fuels contribute 25% of its energy consumption by 2030, solar and wind sectors will encounter major investments. Also, the infrastructural opportunities provided by the ell and road initiative are pulling more and more international investors who are looking to exploit the upward trend of China.

Source: World Bank

#3 Japan (GDP – $5.1 trillion)

Japan’s economy is currently rated at around $5.1 trillion in 2024 and has been growing at a rate of about 7% from $4.75 trillion in the year 2019. The country has its share of demographic problems including an unfavorable aging population and relatively low amount of births. However, the country has sustained its superiority in technology and manufacturing industries, specifically in the robotics and healthcare manufacturing.

Japan is on the recovery path, and visible investment opportunities exist in some key sectors. Robotics, which is expected to grow at a compound annual rate of 15%, would be most useful in the case of healthcare and in automating manufacturing processes. The renewable energy sector hopes to increase the generation of renewables to 36% of its energy generation mix by 2030, creating opportunities in investments in solar and wind. In addition, Japan’s online retail trade is expected to grow to around $170 billion by the year 2025, which is mainly driven by Japan’s expanding digital economy in e-commerce and fintech.

Source: World Bank

#4 Germany (GDP: $4.7 trillion)

With an estimated GDP of about $4.7 trillion in 2024, Germany is the largest economy in Europe, showing a growth of approximately 8% over the past five years i.e., from $4.35 trillion GDP in 2019. Germany’s industrial sector remains important to the overall economy, where manufacturing industry alone accounts for approximately 20% of the GDP.

In light of investment opportunities in Germany, there especially stands out green technology and digital transformation. The German government aims to provide a funding of approximately $110 billion for renewable energy resources by the year 2030 and this has leveled up the solar and wind projects. The car industry also includes investments worth more than $20 billion by the year 2025 in battery technology and infrastructure for charging electric vehicles. As for the development of Industry 4.0 technologies in Germany, it presented perspectives of smart manufacturing and advanced automation.

Source: World Bank

#5 India (GDP: $4.1 trillion)

India is one of the fastest growing economies in the world. It is projected that India’s economy will have a GDP size of about $4.1 trillion by the end of 2024, showcasing about a 15% growth since 2019 when the GDP evolution stood at around $3.56 trillion. More than half of its total population is below the age of 25, this poses India to a crucial and growing consumer base.

India provides numerous opportunities for investments in different sectors. The information technology sector alone is expected to expand at an annual rate of 12% mostly due to the growth in IT services, e-commerce and Fintech. The rest of the investment will come from the government’s National Infrastructure Pipeline which aims to generate $1.5 trillion in investment by the year 2025. In addition to this, the renewable energy industry is expected to achieve 500 GW of renewable capacity by 2030 opening up vast opportunities for investment in solar and wind energy projects.

Source: World Bank

€6 United Kingdom (GDP: $3.7 trillion)

The economy of the United Kingdom has a GDP of about $3.7 trillion as of the year 2024 which indicates a 6% growth over the last five years from $3.5 trillion in 2019. London is also the larger financial center of the world with financial services accounting for around 7% of gross domestic product.

The opportunities for investment in the UK, especially in the fintech segment, which reached over £11 billion in the year 2022, remain great. The renewable energy market is growing, with the government’s aim of achieving up to 50 GW of incorporated offshore wind capacity by the year of 2030. Another attractive area is healthcare, which is in demand because of the increase in the elderly population, and the NHS budget is expected to reach over £200 billion each year by 2024. Furthermore, the creative industries, media and digital content, are anticipated to also grow considerably, thus increasing investment opportunities.

Source: World Bank

#7 France (GDP $3.4 trillion)

The economy of France, as estimated in 2024, is approximately $3.4 trillion, growing by about 5% over a period of 2019 to 2024. France enjoys a diversified economy with agricultural, technological and tourism sectors that are all notably important in terms of the contribution to GDP. Tourism alone represented approximately 7% of GDP in 2019 and welcomed more than 89 million tourists.

Investment opportunities in France however are not lacking, in particular the technological sphere which has had rapid growth in startup environments specializing in artificial intelligence and cybersecurity. In fact, the French government has pledged to invest almost 30 billion euros on digital transformation by 2025. This market segment, further, has plans to provide 40% of electricity from renewable sources by 2030. France has a great potential for investors due to its policies on sustainability and innovation.

Source: World Bank

#8 Canada (GDP: $2.3 trillion)

Canadas GDP is approximated at $2.3 trillion as of 2024, this has seen a step up of about 10% from 2019 where their GDP’s stood at $2.09 trillion. The country possesses a stable political environment, vast natural resources and a developed banking industry.

Investment opportunities in Canada, particularly in oil and gas natural resources where Canada ranks amongst the top three countries in proven oil reserves are quite high. The technology industry is currently booming with investment in software development, Artificial Intelligence, and clean technologies expected to grow in this sector to about 5 billion by 2025. Also, hydropower makes up more than 80% of Canada’s electricity generation with great opportunities for renewable energy investments.

Source: World Bank

#9 Italy (GDP: $2.2 trillion)

As we move closer to end of 2024, the GDP of Italy is estimated to be around $2.2 trillion which depicts an approximate growth of about 4% since the figure was around $2.12 trillion in 2019. In this country, culture and industry are well represented, especially in the field of luxury products and automobile production, which enables the economy to preserve its firm stability.

In Italy, investment opportunities are significant especially in the luxury goods industry that accounts for approximately 8% of GDP which is expected to grow at a CAGR of about 5% over 2026. The automotive industry is also changing as investments in electric vehicles are expected to reach €12 billion by 2025. Besides, the innovative transformation of the food sector is also possible due to the rich agricultural base of the country, as well as the increasing demand for organic and high-quality food. There are increasing investment opportunities in the highly innovative and sustainable business environment shaped by the government policies.

Source: World Bank

#10 Brazil (GDP: $2.1 trillion)

With a GDP of around $2.1 trillion in the year 2024 which is estimated to show a growth of about 9% since 2019 where it stood at 1.93 trillion dollars, Brazil as the largest economy in Latin America has truly made its mark. The country is blessed with plenty of resources whether it’s in the agricultural, mining or fuel fields and is vital in explaining the economy performance.

In Brazil, investment opportunities are present everywhere with especially agribusiness being one of its top exports. There’s huge potential for growth in the renewable energy sector, particularly hydropower and biofuels, with investments projected to exceed $30 billion in this sector by 2025. Moreover, infrastructure development has actually offered tremendous prospects, especially transportation and logistics, as the government is working to improve integration and efficiency. Additionally, Brazil’s geographical position in South America makes it even more interesting for international investors who wish to penetrate regional markets.

Source: World Bank

Conclusion

Looking ahead to the year 2025, the global economy appears to expand in all corners of the world while presenting a wide range of investment opportunities in the world’s largest markets. Countries such as the U.S. and China still remain global leaders, however, the case for emerging markets like India and Brazil is significant for investors. The patterns of economic growth, technology integration, sustainable development approaches as well as geo-political stability will to a large extent, determine the patterns of investment as well as economic strength in the future. Taking into consideration the above trends, will help investors be well positioned to benefit from the changes in the world economy that are likely to occur in the next few years.

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Useful Resources

World Bank Global Economic Prospects

World Bank Data about GDP

International Monetary Fund (IMF) World Economic Outlook

Organisation for Economic Co-operation and Development (OECD) Economic Outlook

McKinsey & Company – Global Economic Trends

About The Author

The article was written in February 2025 by Anant JAIN ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022).