Since the COVID-19 pandemic, the world has faced many ups and downs in economic growth. However, the emerging-market economies, particularly in Asia, have been making good developments. The domination of the West appears to be shaking, according to Focus Economics. The pandemic has accelerated many crises in numerous countries, causing changes in the economic ranking. Let’s analyze and look at the world’s best economies in 2021:
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The World’s Best Economies in 2021
1. United States of America: USD 22,264 Billion
The United States of America retains its title to be the world’s best economy in 2021, with a nominal GDP of USD 22,264 billion. With its healthy private consumption and fixed investment, the U.S. still holds favorable economic demographics under the new president, Joe Biden’s support.
The U.S. economy has somehow recovered from the turbulence of COVID-19; however, further implications of lockdowns to halt the virus seem to undermine its economy in the first half of 2021. But the rapid progress and promotion of COVID-19 vaccines may accelerate the GDP in the second half of the year.
2. China: USD 17,249 Billion
China holds second place in the world’s best economies in 2021, with a nominal GDP of USD 17,249 billion. China’s economy is expected to grow by at least 7.5% in 2021 due to the launch of China’s COVID-19 vaccines.
China is regarded as the first country to return to its pre-epidemic forecast growth rate in the fourth quarter of 2020. Moreover, the IMF predicts that China’s economy will grow 8.1% in 2021 and 5.6% in 2022.
3. Japan: USD 5,278 Billion
Japan ranks third in the best economies in 2021, with a nominal GDP of USD 5,278 billion. Economists predict that policy rates in Japan will remain zero even beyond 2021. Moreover, the Japanese currency will reap advantage from the country’s strengthening exports and relatively reduced inflation rates.
According to Forbes, the economy of Japan has performed better than expected in the last quarter of 2020. Furthermore, the Japanese economy is predicted to have one of its best rebounds ever this year, as, by the end of 2021, consumption is expected to pick up. This is mainly due to the vaccination efforts being carried out by the Japanese government, which will serve to ease the pressure and burden on the economy.
4. Germany: USD 4,278 Billion
Germany clings to fourth place in the list of the world’s best economies in 2021 and has a nominal GDP of USD 4,278 billion. It fought the COVID-19 crisis better than many other developed countries, which might be aided by the ever-growing technological advancement in the country.
Germany’s economic growth had shrunk by 5% in 2020 due to the pandemic. It is expected to rise with the distribution of COVID-19 vaccines across the country. Still, the output is not expected to return to its pre-pandemic level before 2022. According to Bloomberg, the German government expects a 3% expansion in 2021, down from a 4.4% forecast at the end of October.