Indonesia recorded an impressive economic achievement in 2024, ranking as the world's eighth-largest economy, according to data from the International Monetary Fund (IMF). With a gross domestic product (GDP) of USD 4.66 trillion based on purchasing power parity (PPP), Indonesia even surpassed advanced economies such as France and the United Kingdom.
This success not only reaffirms Indonesia’s position as the largest economy in Southeast Asia but also strengthens its role as a key global economic power amid shifting global economic dynamics.
World’s Largest Economies in 2024
China continued to dominate the global economy in 2024, with a GDP of USD 37.07 trillion, surpassing the United States, which ranked second with USD 29.17 trillion.
Meanwhile, India secured third place with a GDP of USD 16.02 trillion, followed by Russia in fourth place. Below is the complete list of the world’s 10 largest economies in 2024.
Rank | Country | PPP-adjusted GDP (2024) |
---|---|---|
1 | China | 37.07 trillion USD |
2 | United States | 29.17 trillion USD |
3 | India | 16.02 trillion USD |
4 | Russia | 6.91 trillion USD |
5 | Japan | 6.57 trillion USD |
6 | Germany | 6.02 trillion USD |
7 | Brazil | 4.70 trillion USD |
8 | Indonesia | 4.66 trillion USD |
9 | France | 4.36 trillion USD |
10 | United Kingdom | 4.28 trillion USD |
Global Economic Outlook 2025-2026
The IMF’s World Economic Outlook Update January 2025 projects global economic growth at 3.3 percent for both 2025 and 2026, lower than the historical average of 3.7 percent from 2000 to 2019. This projection remains stable compared to the WEO report from October 2024, with upward revisions in the U.S. offsetting slowdowns in other major economies.
Global inflation is expected to decline to 4.2 percent in 2025 and 3.5 percent in 2026, with advanced economies reaching their targets faster than emerging and developing markets. However, policy missteps could hinder disinflation efforts and pose risks to fiscal and financial stability. The IMF emphasizes the importance of balanced policies, structural reforms, and multilateral cooperation to sustain long-term growth.
While global economic stability remains intact, growth varies across countries. In Q3 2024, Asia and Europe experienced slowdowns. China grew by 4.7 percent, but consumption weakened due to uncertainty in the property sector.
India saw a decline in industrial activity, while Germany lagged behind in Europe’s recovery due to a sluggish manufacturing sector and weaker exports, despite improving consumer spending. Japan experienced a mild contraction due to temporary supply disruptions, whereas the U.S. remained strong with 2.7 percent growth, driven by robust consumption.
Although the global disinflation trend continues, some countries face persistent inflationary pressures. This highlights the need for flexible policy strategies to maintain economic stability.