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How is Konoha the strongest of the great ninja villages

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The strength of a village (just like a normal country) fluctuates. In previous databooks they were measured based on 3 things: population, the strength of their economy, and military strength. Konohagakure would stand atop the other villages because it had the largest &/ oldest stable economy and constantly produced high-level shinobi which increased its military might. That would generally cause Konoha to be seen as the most powerful village.

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The strength of a village (just like a normal country) fluctuates. In previous databooks they were measured based on 3 things: population, the strength of their economy, and military strength. Konohagakure would stand atop the other villages because it had the largest &/ oldest stable economy and constantly produced high-level shinobi which increased its military might. That would generally cause Konoha to be seen as the most powerful village. But, things can change: things such as shinobi defecting, genocide, wars (external and internal) can always damage an economy so much so that at one point Kumogakure was regarded as the strongest village. We saw the Fourth Kazekage for example, producing Gold Dust to sell rather than as a weapon. With the destruction of (half) the village after the Ten-Tails attacked it, and Konoha re-stabilizing its economy that probably changed. In recent years, the villages have been moving towards combined sustainability, they've moved towards sharing methods (infrastructure, training, medical knowledge etc) to help each other rather than being secretive and or attempting to steal from other villages.