In this article, we look at the 20 largest economies in Asia. You can skip our detailed analysis of growing Asian economic power and head directly to the 5 Largest Economies in Asia.
The 19th century belonged to the Europeans. The world was Americanized in the 20th century. Now, experts have dubbed the 21st century as Asia’s century. The continent is home to more than half of the world’s population. According to the Asian Development Bank (ADB), about 80% of developing Asian economies have been categorized as middle income economies by the World Bank – the highest proportion among developing regions. 15.6% of those are high-income economies, whereas just under 5% are low-income.
Foreign Direct Investment (FDI) flows to developing Asian countries rose by 19% in 2021- to $619 billion – an all-time high. China, India, Indonesia, Hong Kong, Singapore, and United Arab Emirates were the main recipients.
Asia’s Corporate Power
More than 95% of Apple Inc. (NASDAQ:AAPL)’s iPhones, iPads, Macs, and Air Pods are made in China. About one-fifth of its revenue is earned from China as well - $74 billion in 2022. In April this year, Tim Cook inaugurated Apple Inc. (NASDAQ:AAPL)’s first retail store in India, opening it in the country’s financial capital, Mumbai. Indonesia received FDI worth $43 billion in 2022, the highest in its history and up 44% from last year. In 2021, Microsoft Corporation (NASDAQ:MSFT) announced to establish a new datacenter in Indonesia, which is likely to generate $6.3 billion in revenues for the company.
Reports in the UAE press in 2022 said that Microsoft Corporation (NASDAQ:MSFT) expects its cloud services portfolio to add $39 billion to the Emirati economy by 2026. Sundar Pichai, CEO of Alphabet Inc. (NASDAQ:GOOG)’s Google, announced last year to invest up to $690 million in Japan to open up a datacenter near Tokyo in 2024. In 2018, Alphabet Inc. (NASDAQ:GOOG) pumped $550 million in a Chinese e-commerce company, powerhouse JD.com, to expand its presence in growing markets of Asia.
About $19 trillion is added to the global economy each year by Asian corporations. Some prominent contributing companies include Toyota Motor Corporation (NYSE:TM), Baidu, Inc. (NASDAQ:BIDU), and Alibaba Group Holding Limited (NYSE:BABA).
Toyota Motor Corporation (NYSE:TM) is a Japanese car manufacturer which has a share of 11.5% of the world’s automobile industry. On the other hand, in the retail and wholesale market, Alibaba Group Holding Limited (NYSE:BABA) controls more than half of China’s online retail market. It is also one of the biggest e-commerce firms in the world. Likewise, China’s search engine market is dominated by Baidu, Inc. (NASDAQ:BIDU), which holds a 65% share of the industry.
India’s Tata Group is ranked as the 57th largest global company by Brand Finance. It is valued at $11.4 billion. Reliance Industries Limited, India’s largest conglomerate, was placed 45th out of the world’s top 2,000 corporations by Forbes, ahead of giants like BMW, Nestle, and Proctor and Gamble. Taiwanese multinational firm, Taiwan Semiconductor Manufacturing Company Limited, also known as TSMC, is the country’s largest company and is the dominant producer in the global foundry industry – accounting for close to 60% of the annual output.
China has the largest economy in Asia, with a GDP of over $18 trillion. It is also the most powerful country in Asia, and second on the list of the 25 Most Powerful Countries in the World in 2023. On the other hand, Singapore tops the list of countries with the highest GDP per capita in Asia – close to $72,000 in 2021, according to the World Bank. It is a major international financial hub. Singapore also has one the most powerful currencies in the world, which accounts for 1.8% of all foreign exchange market trading.
A report released by PwC titled ‘The World in 2050’ has projected the world’s cumulative GDP growth between 2016 and 2050 to rise by 130%. China’s share of the GDP will be one-fifth of the world. India will become the second largest economy on the globe in 2050, behind China but ahead of the United States. Indonesia is also likely to be the fourth largest economy by 2050. Going by these predictions, three of the five largest economies in the world by 2050 will be Asian countries.
Cambodia, Vietnam, India, Maldives, and Bangladesh are the fastest growing economies in Asia. You can read more on this in our article, the 15 Fastest Growing Countries in Asia.
Methodology
We have ranked the 20 largest economies in Asia by sorting them in ascending order based on the size of their gross domestic product (GDP). GDP data is from 2022 and has been taken from International Monetary Fund (IMF).
20 Largest Economies in Asia
Here are the 20 largest economies in Asia.
20. Iraq
GDP: $270 billion
We begin our list with Iraq, one of the largest economies in Asia, which had a GDP of $270 billion in 2022. The economy grew at 8% that year largely due to the country’s 12% increase in oil exports which provided much-needed respite to the Iraqi economy.
19. Iran
GDP: $352 billion
Next on the list is Iran. The country’s GDP was measured by IMF at $352 billion for 2022. Economic growth in 2023 is expected to be 2.2%. Despite economic sanctions and high inflation, Iran is the 19th among the largest economies in Asia and is 43rd among the largest economies in the world.
18. Hong Kong
GDP: $361 billion
Hong Kong is well on track to achieve the government’s targeted GDP growth range between 3.5% and 5% for 2023. The Hong Kong Dollar is the nineth most traded currency in the world. This is largely due to Hong Kong being a major international trading and financial services hub.
17. Pakistan
GDP: $376 billion
Pakistan is Asia’s 17th largest economy in terms of GDP. The country is the fifth most populous country in the world and has under-achieved considering its size due to political and security turmoil since the last two decades. Alphabet Inc. (NASDAQ:GOOG)’s Google opened its first liaison office in Pakistan last year.
16. Philippines
GDP: $404 billion
Philippines currently finds itself on the list of 20 largest economies in Asia in 2023, but by 2050, it is projected to be among the 20 largest economies in the world, according to PwC. The Asian Development Bank (ADB) has forecasted the Philippines economy to grow by 6% in 2023. It is also on track to become an upper middle-income economy, per the ADB.
15. Vietnam
GDP: $407 billion
Vietnam is a key manufacturing hub in southeast Asia. After registering a GDP growth of 8% in 2022, Vietnam’s economy has slowed down to 3.3% in the first quarter of 2023. This is largely due to two of its biggest trading partners – the United States and European Union – going through a period of slowed economic growth. The country’s GDP was measured at $407 billion in 2022.
14. Malaysia
GDP: $408 billion
Malaysia’s GDP growth, in the first quarter of 2023, was recorded at 5.8%, which is considerably higher than other prominent countries in its neighborhood including China, Indonesia, and Vietnam. Malaysia’s GDP was estimated to be $408 billion in 2022. The size of the economy is expected to rise by almost 90% to $780 billion by 2032. It was reported in 2023 that Apple Inc. (NASDAQ:AAPL) had begun hiring to open its retail store in Malaysia.
13. Bangladesh
GDP: $460 billion
Bangladesh is one of the fastest growing economies in Asia, and the third fastest in South Asia after Maldives and India. Its GDP per capita is higher than both India and Pakistan. In 2022, the nominal size of Bangladesh’s economy was measured at $460 billion, making it one of the biggest economies in Asia.
12. Singapore
GDP: $467 billion
Despite having a population of a little over 5 million, Singapore is a global economic powerhouse. It has the highest GDP per capita in Asia, and one of the highest in the world. Singapore had a GDP of $467 billion in 2022. The economy is expected to grow between 0.5-2% in 2023, according to the Singapore Department of Statistics.
11. United Arab Emirates
GDP: $507 billion
The United Arab Emirates’ GDP is expected to grow by over 7% in 2023. In 2022, the growth rate was estimated to be 7.6%, with the GDP measured at $507 billion. The government plans to double the size of the economy by 2031. The UAE is also one of the most politically influential countries in the world.
10. Israel
GDP: $523 billion
Israel had a GDP of $523 billion, and a GNI per capita close to $50,000 in 2022. It ranks among the countries that spend the highest on innovation, and research and development. Israel’s Reichman University and Alphabet Inc. (NASDAQ:GOOG) have set up a school to train high-tech professionals, offering courses in data analysis, sales, and IT. The Bank of Israel has projected the economy to grow by 2.5% in 2023, which is down from 2022’s growth rate of 6.5%.
9. Thailand
GDP: $536 billion
Thailand’s economy has seen a boost after Covid-19 travel restrictions were eased in May 2022. The GDP growth rate was estimated at 2.7% in the first quarter of 2023, compared to 1.4% in the last quarter of 2022. The size of the economy is measured at $536 billion according to the IMF.
8. Taiwan
GDP: $761 billion
Taiwan lies at the junction between the East and South China Seas. It is referred to as one of the four ‘Asian Tigers’ alongside Hong Kong, Singapore, and South Korea, due to its consistently strong economic growth for several years. Taiwan’s GDP was estimated to be $761 billion in 2022. Its GNI was reported at around $35,000 in 2021.
7. Türkiye
GDP: $906 billion
Türkiye is a transcontinental country located mainly in Western Asia with a small portion in Southeast Europe. In terms of nominal GDP, it is the 19th largest economy in the world, and the seventh largest in Asia. The country’s economic growth was recorded at 5.2% in 2022. Türkiye’s currency, however, has taken a beating, having lost 60% of its value against the U.S. dollar since 2021.
6. Saudi Arabia
GDP: $1.1 trillion
Saudi Arabia is one of the top economies in Asia. The country is a founding member of OPEC and one of the largest exporters of oil globally. Oil made 79% of all exports of Saudi Arabia in 2022, up from 71% in 2021. The country has used its economic power to boost its national security as well. It spent $75 billion on military expenditure in 2022, which made Saudi Arabia the fifthlargest spender on defense in the world.
