Forbes magazine has named German Chancellor Angela Merkel the world's most powerful woman, citing her leadership role in the European Union's economy.

In its latest annual list of powerful women, published Wednesday, Forbes singled out the German leader for being the head of what it called “the one real global economy in Europe.”

U.S. Secretary Hillary Clinton placed second in Forbes' newest list of the 100 most powerful women. Brazilian President Dilma Rousseff ranked third. Ms. Rousseff is Brazil's first woman president.

The oldest person on the list is Britain's Queen Elizabeth, who is 85 years old. The British monarch is No. 49 on the list. The youngest person is 25-year-old pop queen Lady Gaga, who ranks at No. 11.

U.S. first lady Michelle Obama, who held the top spot last year, dropped to 8th place in the new ranking.