Open main menu

Wikipedia β

20 Largest economies pie chart

The world economy or global economy is the economy of the world, considered as the international exchange of goods and services that is expressed in monetary units of account (money).[1] In some contexts, the two terms are distinguished: the "international" or "global economy" being measured separately and distinguished from national economies while the "world economy" is simply an aggregate of the separate countries' measurements. Beyond the minimum standard concerning value in production, use, and exchange the definitions, representations, models, and valuations of the world economy vary widely. It is inseparable from the geography and ecology of Earth.

It is common to limit questions of the world economy exclusively to human economic activity, and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research or government cooperation makes establishing figures difficult. Typical examples are illegal drugs and other black market goods, which by any standard are a part of the world economy, but for which there is by definition no legal market of any kind.

However, even in cases in which there is a clear and efficient market to establish a monetary value, economists do not typically use the current or official exchange rate to translate the monetary units of this market into a single unit for the world economy, since exchange rates typically do not closely reflect worldwide value, for example in cases where the volume or price of transactions is closely regulated by the government.

World share of GDP (PPP) (World Bank, 2011).[2]

Rather, market valuations in a local currency are typically translated to a single monetary unit using the idea of purchasing power. This is the method used below, which is used for estimating worldwide economic activity in terms of real US dollars or euros. However, the world economy can be evaluated and expressed in many more ways. It is unclear, for example, how many of the world's 7.13 billion people have most of their economic activity reflected in these valuations.

As of 2017, the following 15 countries or regions have reached an economy of at least US$2 trillion by GDP in nominal or PPP terms: Brazil, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Turkey, the United Kingdom, the United States, and the European Union.[3]

Contents

Economy – overviewEdit

World economy by Country GroupsEdit

The following two tables list the Country Groups with individual countries designated by the IMF.[4] Members of the G-20 major economies are in bold.

List of Country Groups by GDP (nominal) in Millions US$[5] List of Country Groups by GDP (PPP) in 2015 in Millions US$[5]
Country Group GDP (Nominal) Peak Year Number of Countries Economies with at least 0.5% of Global GDP
Major advanced economies (G7) 36,006,539 2017 7   Canada
  France
  Germany
  Italy
  Japan
  United Kingdom
  United States
Emerging and Developing Asia 17,084,823 2017 30   China
  India
  Indonesia
  Thailand
Other Advanced Economies
(Advanced economies excluding G7)
11,593,086 2014 32   Australia
  Austria
  Belgium
  South Korea
  Netherlands
  Norway
  Spain
  Sweden
   Switzerland
  Taiwan
Latin America and the Caribbean 5,983,936 2013 32   Argentina
  Brazil
  Mexico
Middle East, North Africa, Afghanistan, and Pakistan 3,473,402 2014 22   Iran
  Saudi Arabia
  United Arab Emirates
Commonwealth of Independent States and Georgia 2,943,338 2013 12   Russia
Emerging and developing Europe 2,031,117 2014 12   Poland
  Turkey
Sub-Saharan Africa 1,690,338 2014 45   Nigeria
World 78,519,556 2014 192
Country Group GDP (Nominal) Peak Year Number of Countries Economies with at least 0.5% of Global GDP
Emerging and Developing Asia 41,233,893 2017 30   China
  India
  Indonesia
  Malaysia
  Philippines
  Thailand
Major advanced economies (G7) 38,766,514 2017 7   Canada
  France
  Germany
  Italy
  Japan
  United Kingdom
  United States
Other Advanced Economies
(Advanced economies excluding G7)
13,587,681 2017 32   Australia
  South Korea
  Netherlands
  Spain
  Taiwan
Latin America and the Caribbean 9,730,047 2017 32   Argentina
  Brazil
  Colombia
  Mexico
  Venezuela
Middle East, North Africa, Afghanistan, and Pakistan 9,529,045 2017 22   Algeria
  Egypt
  Iran
  Pakistan
  Saudi Arabia
  United Arab Emirates
Commonwealth of Independent States and Georgia 5,583,406 2017 12   Russia
Emerging and developing Europe 4,453,006 2017 12   Poland
  Turkey
Sub-Saharan Africa 3,804,491 2017 45   Nigeria
  South Africa
World 126,688,083 2017 192

Current world economic league table of largest economies in the world by GDP and share of global economic growthEdit

The following two tables list the 25 largest economies by GDP (Nominal), twenty largest economies by GDP (PPP). Members of the G-20 major economies are in bold.

List of the 25 largest economies
by GDP (nominal) at their peak level of GDP in Millions US$
[6]
List of the 25 largest economies
by GDP (PPP) at their peak level of GDP in Millions US$
[7]
Rank Country Value
(USD$)
Peak Year
World 78,519,556 2014
1   United States 19,417,144 2017
  European Union 19,200,287 2008
2   China 11,795,297 2017
3   Japan 6,203,213 2012
4   Germany 3,885,440 2014
5   United Kingdom 3,064,351 2007
6   France 2,937,321 2008
7   Brazil 2,614,027 2011
8   India 2,454,458 2017
9   Italy 2,402,062 2008
10   Russia 2,230,624 2013
11   Canada 1,842,627 2013
12   Spain 1,642,738 2008
13   Australia 1,509,639 2012
14   South Korea 1,498,074 2017
15   Mexico 1,298,404 2014
16   Indonesia 1,020,515 2017
17   Turkey 950,328 2013
18   Netherlands 940,665 2008
19   Saudi Arabia 756,350 2014
20    Switzerland 702,736 2014
21   Argentina 631,621 2015
22   Sweden 578,742 2013
23   Iran 570,039 2011
24   Nigeria 568,496 2014
25   Taiwan 566,757 2017
Rank Country Value
(USD$)
Peak Year
World 126,688,083 2017
1   China 23,194,411 2017
  European Union 20,852,702 2017
2   United States 19,417,144 2017
3   India 9,489,302 2017
4   Japan 5,420,228 2017
5   Germany 4,134,668 2017
6   Russia 3,938,001 2017
7   Brazil 3,306,570 2014
8   Indonesia 3,257,123 2017
9   United Kingdom 2,905,392 2017
10   France 2,833,064 2017
11   Mexico 2,406,199 2017
12   Italy 2,303,108 2017
13   Turkey 2,082,079 2017
14   South Korea 2,029,706 2017
15   Saudi Arabia 1,796,205 2017
16   Spain 1,768,816 2017
17   Canada 1,752,910 2017
18   Iran 1,535,491 2017
19   Australia 1,251,416 2017
20   Thailand 1,226,407 2017
21   Egypt 1,197,967 2017
22   Taiwan 1,177,052 2017
23   Nigeria 1,124,627 2017
24   Poland 1,114,105 2017
25   Pakistan 1,060,569 2017

Twenty largest economies in the world by nominal GDPEdit

The following is a list of the twenty largest economies by nominal GDP at peak value as of the specific year according to International Monetary Fund.[8]

Rank 1980 1985 1990 1995 2000 2005 2010 2015 2020
1   United States   United States   United States   United States   United States   United States   United States   United States   United States
2   Soviet Union   Soviet Union   Japan   Japan   Japan   Japan   China   China   China
3   Japan   Japan   Soviet Union   Germany   Germany   Germany   Japan   Japan   Japan
4   West Germany   West Germany   West Germany   France   United Kingdom   United Kingdom   Germany   Germany   Germany
5   France   France   France   United Kingdom   France   China   United Kingdom   United Kingdom   India
6   United Kingdom   United Kingdom   United Kingdom   Italy   Italy   France   France   France   United Kingdom
7   Italy   Italy   Italy   Brazil   China   Italy   Italy   Brazil   France
8   China   Canada   Canada   China   Brazil   Canada   Brazil   Italy   Brazil
9   Canada   China   Iran   Spain   Canada   Spain   Russia   Russia   Italy
10   Mexico   India   Spain   Canada   Mexico   South Korea   India   India   Russia
Rank 1980 1985 1990 1995 2000 2005 2010 2015 2020
11   Spain   Brazil   Brazil   Iran   Spain   Brazil   Spain   Canada   Canada
12   Brazil   Mexico   China   South Korea   South Korea   Mexico   Canada   Spain   South Korea
13   India   Australia   India   Mexico   Iran   India   Australia   Australia   Spain
14   Netherlands   Spain   Australia   Netherlands   India   Russia   South Korea   South Korea   Australia
15   Australia   Iran   Netherlands   Australia   Netherlands   Australia   Mexico   Mexico   Indonesia
16   Saudi Arabia   Netherlands   Mexico   India   Russia   Netherlands   Netherlands   Turkey   Mexico
17   Sweden   Sweden   South Korea    Switzerland   Australia   Iran   Turkey   Netherlands   Turkey
18   Belgium   Saudi Arabia    Switzerland   Russia    Switzerland   Turkey   Indonesia   Indonesia   Netherlands
19    Switzerland    Switzerland   Sweden   Belgium   Taiwan    Switzerland    Switzerland   Saudi Arabia   Saudi Arabia
20   Iran   South Korea   Turkey   Argentina   Argentina   Sweden   Iran    Switzerland   Argentina

Twenty Largest Economies in the World by PPP GDP (IMF and CIA World Factbook)Edit

The following is a list of twenty largest economies by GDP (PPP) at peak value as of the specific year according to CIA World Factbook and the International Monetary Fund.[9][10]

Rank 1980 1985 1990 1995 2000 2005 2010 2015 2020
1   United States   United States   United States   United States   United States   United States   United States   China   China
2   Soviet Union   Soviet Union   Japan   Japan   China   China   China   United States   United States
3   Japan   Japan   West Germany   China   Japan   Japan   India   India   India
4   Italy   West Germany   Soviet Union   Germany   Germany   India   Japan   Japan   Japan
5   West Germany   Italy   Italy   Russia   India   Germany   Russia   Germany   Germany
6   France   France   France   India   Russia   Russia   Germany   Russia   Russia
7   Brazil   Brazil   China   Italy   France   Brazil   Brazil   Brazil   Indonesia
8   United Kingdom   United Kingdom   United Kingdom   France   Italy   France   France   Indonesia   Brazil
9   Mexico   China   Brazil   Brazil   Brazil   United Kingdom   United Kingdom   United Kingdom   United Kingdom
10   India   India   India   United Kingdom   United Kingdom   Italy   Italy   France   France
Rank 1980 1985 1990 1995 2000 2005 2010 2015 2020
11   China   Mexico   Mexico   Mexico   Mexico   Mexico   Indonesia   Mexico   Mexico
12   Spain   Canada   Canada   Indonesia   Indonesia   Indonesia   Mexico   Italy   Italy
13   Canada   Spain   Indonesia   Spain   Spain   Spain   Spain   Turkey   Turkey
14   Saudi Arabia   Iran   Spain   Canada   Canada   Canada   South Korea   South Korea   South Korea
15   Indonesia   Indonesia   Saudi Arabia   Saudi Arabia   South Korea   South Korea   Canada   Saudi Arabia   Saudi Arabia
16   Argentina   Saudi Arabia   Turkey   South Korea   Saudi Arabia   Saudi Arabia   Iran   Canada   Spain
17   Iran   Turkey   Iran   Turkey   Turkey   Turkey   Turkey   Spain   Canada
18   Netherlands   Australia   South Korea   Iran   Iran   Iran   Saudi Arabia   Iran   Iran
19   Turkey   Netherlands   Australia   Australia   Australia   Australia   Australia   Australia   Egypt
20   Poland   Argentina   Netherlands   Thailand   Netherlands   Thailand   Taiwan   Thailand   Australia

Statistical indicatorsEdit

EconomyEdit

  • GDP (GWP) (gross world product): (purchasing power parity exchange rates) – $59.38 trillion (2005 est.), $51.48 trillion (2004), $23 trillion (2002)
  • GDP (GWP) (gross world product):[11] (market exchange rates) – $60.69 trillion (2008)
  • GDP – real growth rate: 3.2% (2008), 3.1% p.a. (2000–07), 2.4% p.a. (1990–99), 3.1% p.a. (1980–89)
  • GDP – per capita: purchasing power parity – $9,300, €7,500 (2005 est.), $8,200, €6,800 (92) (2003), $7,900, €5,000 (2002)
  • World median income: purchasing power parity $1,041, €950 (1993)[12]
  • GDP – composition by sector: agriculture: 4%; industry: 32%; services: 64% (2004 est.)
  • Inflation rate (consumer prices): developed countries 1% to 4% typically; developing countries 5% to 60% typically; national inflation rates vary widely in individual cases, from declining prices in Japan to hyperinflation in several Third World countries (2003)
  • Derivatives OTC outstanding notional amount: $601 trillion (Dec 2010) ([4])
  • Derivatives exchange traded outstanding notional amount: $82 trillion (June 2011) ([5])
  • Global debt issuance: $5.187 trillion, €3 trillion (2004), $4.938 trillion, €3.98 trillion (2003), $3.938 trillion (2002) (Thomson Financial League Tables)
  • Global equity issuance: $505 billion, €450 billion (2004), $388 billion. €320 billion (2003), $319 billion, €250 trillion (2002) (Thomson Financial League Tables)

EmploymentEdit

 
World GDP per capita between 1500–2000 (log scale)
 
World GDP per capita between 1500–2003
 
GDP increase, 1990–1998 and 1990–2006, in major countries.
  • Unemployment rate: 8.7% (2009 est.). 30% (2007 est.) combined unemployment and underemployment in many non-industrialized countries; developed countries typically 4%–12% unemployment.

IndustriesEdit

  • Industrial production growth rate: 3% (2002 est.)

EnergyEdit

  • Yearly electricity – production: 21,080,878 GWh (2011 est.),[13] 15,850,000 GWh (2003 est.), 14,850,000 GWh (2001 est.)
  • Yearly electricity – consumption: 14,280,000 GWh (2003 est.), 13,930,000 GWh (2001 est.)
  • Oil – production: 79,650,000 bbl/d (12,663,000 m3/d) (2003 est.), 75,460,000 barrels per day (11,997,000 m3/d) (2001)
  • Oil – consumption: 80,100,000 bbl/d (12,730,000 m3/d) (2003 est.), 76,210,000 barrels per day (12,116,000 m3/d) (2001)
  • Oil – proved reserves: 1.025 trillion barrel (163 km³) (2001 est.)
  • Natural gas – production: 3,366 km³ (2012 est.),[14] 2,569 km³ (2001 est.)
  • Natural gas – consumption: 2,556 km³ (2001 est.)
  • Natural gas – proved reserves: 161,200 km³ (1 January 2002)

Cross-borderEdit

  • Yearly exports: $12.4 trillion, €11.05 trillion (2009 est.)
  • Exports – commodities: the whole range of industrial and agricultural goods and services
  • Exports – partners: US 12.7%, Germany 7.1%, China 6.2%, France 4.4%, Japan 4.2%, UK 4.1% (2008)
  • Yearly imports: $12.29 trillion, €10.95 trillion (2009 est.)
  • Imports – commodities: the whole range of industrial and agricultural goods and services
  • Imports – partners: China 10.3%, Germany 8.6%, US 8.1%, Japan 5% (2008)
  • Debt – external: $56.9 trillion, €40 trillion (31 December 2009 est.)

Gift economyEdit

CommunicationsEdit

Telephones – main lines in use: 843,923,500 (2007)
4,263,367,600 (2008)

TransportEdit

Transportation infrastructure worldwide includes:

MilitaryEdit

  • World military expenditure in 2012: estimated to $1.756 trillion [19]
  • Military expenditures – percent of GDP: roughly 2% of gross world product (1999).

Economic studiesEdit

To promote exports, many government agencies publish on the web economic studies by sector and country. Among these agencies include the USCS (US DoC) and FAS (USDA) in the United States, EDC and AAFC in Canada, Ubifrance in France, UKTI in the UK, HKTDC and JETRO in Asia, Austrade and NZTE in Oceania. Through Partnership Agreements, The Federation of International Trade Associations publishes studies from several of these agencies (USCS, FAS, AAFC, UKTI, HKTDC), as well as other non-governmental organizations on its website GlobalTrade.net.

See alsoEdit

ReferencesEdit

  1. ^ "World Economy." – Definition. American English Definition of with Pronunciation by Macmillan Dictionary. N.p., n.d. Web. 02 Jan. 2015.
  2. ^ "The International Comparison Program (ICP)". Retrieved 1 April 2017. 
  3. ^ "Gross domestic product, current prices & Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP". World Economic Outlook Database, October 2015. International Monetary Fund. October 2015. Retrieved 2015-10-15. 
  4. ^ [1] IMF GDP 2017 Data (April 2017)
  5. ^ a b "Gross domestic product". IMF World Economic Outlook. April 2017. Retrieved 14 April 2017. 
  6. ^ [2] IMF GDP (Nominal) Data (April 2017)
  7. ^ [3] IMF GDP (PPP) Data (April 2017)
  8. ^ "Gross domestic product, current prices". International Monetary Fund. International Monetary Fund. October 2015. Retrieved 11 October 2015. 
  9. ^ "Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP; Current international dollar". International Monetary Fund. April 2017. Retrieved 14 May 2017. 
  10. ^ "GDP (PURCHASING POWER PARITY)". CIA World Factbook. CIA World Factbook. 2014. Retrieved October 7, 2014. 
  11. ^ "IMF World Economic Outlook, Crisis and Recovery, April 2009". Imf.org. 2009-04-16. Retrieved 2012-07-17. 
  12. ^ B. Milanovic (January 2002). "True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone" (PDF). Retrieved 13 May 2011. 
  13. ^ "International Energy Statistics". Retrieved 1 April 2017. 
  14. ^ "International Energy Statistics". Retrieved 1 April 2017. 
  15. ^ "Development aid stable in 2014 but flows to poorest countries still falling". OECD. 2015-04-08. Retrieved 2015-07-23. 
  16. ^ global cellphone penetration reaches 50 percent
  17. ^ "World Internet Usage Statistics News and World Population Stats". Internetworldstats.com. Retrieved 2015-06-08. 
  18. ^ "The World Factbook — Central Intelligence Agency". Retrieved 1 April 2017. 
  19. ^ "3. Military expenditure - SIPRI". Retrieved 1 April 2017. 

External linksEdit