The world's most powerful economies

The UK has overtaken France to become the world's fifth largest economy in real terms and is set to become the best performing economy in the western world over the next 15 years

Here are the world's ten largest economies, according to the IMF World Economic Outlook (WEO) from October 2015. We have used GDP figures based on purchasing power parity (PPP) valuation, which eliminates the skewing effect of currency market fluctuations.

10. France

In tenth spot, France has slipped behind the UK to become Europe's fourth largest economy in PPP terms, with a GDP of $2.65 trillion. In real terms, not adjusted for PPP, its economy grew by 1.3pc in 2015.

9. United Kingdom

In real terms, the UK has the fifth largest economy in the world. However, adjusted for PPP, it comes just ninth, with a GDP of $2.66 trillion. The UK's economy has expanded for 12 consecutive quarters, growing by 2.2pc in 2015, but the Chancellor George Osborne has  warned of "bumpy times ahead.

8. Indonesia

Indonesia is the 16th largest economy in real terms, but rises to eighth place when the effects of currency conversion are removed, with a GDP of $2.84 trillion. Indonesia briefly overtook India  as the second fastest growing G20 economy, but slipped back into third place in 2014.

7. Bazil

Low oil prices and high mandated government spending are taking their toll on Brazil's economy . Despite a near 4pc drop in Brazil's GDP in 2015 – its biggest contraction in a quarter century – the Latin American country has the seventh largest economy in the world in PPP terms, at $3.21 trillion. 

6. Russia

Russia's economy  contracted at the fastest pace in six years in 2015 due to sanctions and plunging oil prices. Despite its 3.7pc decline in 2015, Russia's economy is still the sixth largest in the world in PPP terms, worth $3.47 trillion.

5. Germany

Europe's powerhouse is also the world's fifth largest economy in PPP terms, with a GDP of $3.84 trillion. However, with the lowest birth rate in the world, Germany will struggle to compete with fast-growing Asian economies in the future. 

4. Japan

The third largest economy in real terms, Japan slips to fourth place on this list with a PPP-adjusted GDP of $4.84 trillion. However, weak domestic demand and falling exports – coupled with, like Germany, a shrinking population – is threatening to send Japan's economy into its sixth recession in seven years .

3. India

India has the world's third largest economy, although it languishes in seventh place in real terms. With a PPP-adjusted GDP of $8.03 trillion, India recently overtook China to become  the fastest growing major economy in the world, expanding by 7.3pc in 2015. 

2. United States

Although the US has the world's largest economy in real terms, with a GDP of $17.97 trillion, it drops to second place when the effects of the strong dollar are stripped out.

1. China

China's economic growth has slowed to its weakest pace in seven years, gaining 6.7pc in the first quarter of this year. However, at $19.51 trillion in PPP terms, China has the largest economy in the world. As Martin Gilbert recently wrote in the Telegraph: "Economists have often said 'when America sneezes, the world catches a cold'... but the past 12 months suggest the world’s immune system is more sensitive to China’s sniffles than was previously thought.