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The world economy or global economy is the economy of all humans of the world, considered as the international exchange of goods and services that is expressed in monetary units of account.[1] In some contexts, the two terms are distinct "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 United States 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 7.62 billion people have most of their economic activity reflected in these valuations.

According to Maddison, until the middle of 19th century, global output was dominated by China and India. Waves of Industrial Revolution in Western Europe and Northern America shifted the shares to the Western Hemisphere. 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]

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) at peak level as of 2019 in millions US$[5] List of country groups by GDP (PPP) at peak level as of 2019 in millions US$[5]
Country group GDP (nominal) Peak year Number of countries Members of G20 economies and/or largest in the group (mutually inclusive)
World 86,598,831 2019 194
Major advanced economies (G7) 39,627,483 2019 7   Canada
  France
  Germany
  Italy
  Japan
  United Kingdom
  United States
Emerging and developing Asia 20,318,036 2019 30   China
  India
  Indonesia
  Malaysia
  Philippines
  Thailand
Other advanced economies
(advanced economies excluding G7)
12,342,129 2018 32   Australia
  South Korea
  Netherlands
  Spain
   Switzerland
  Taiwan
Latin America and the Caribbean 6,023,170 2013 33   Argentina
  Brazil
  Colombia
  Mexico
  Venezuela
Emerging and developing Europe 4,573,336 2013 16   Poland
  Russia
  Turkey
Middle East and Central Asia 3,929,136 2014 41   Egypt
  Iran
  Pakistan
  Saudi Arabia
  United Arab Emirates
Sub-Saharan Africa 1,741,308 2014 45   Nigeria
  South Africa
Country group GDP (PPP) Peak year Number of countries Members of G20 economies and/or largest in the group (Mutually exclusive)
World 141,859,625 2019 194
Emerging and developing Asia 48,514,477 2019 30   China
  India
  Indonesia
  Malaysia
  Philippines
  Thailand
Major advanced economies (G7) 42,166,361 2019 7   Canada
  France
  Germany
  Italy
  Japan
  United Kingdom
  United States
Other advanced economies
(advanced economies excluding G7)
15,069,240 2019 32   Australia
  South Korea
  Netherlands
  Singapore
  Spain
  Taiwan
Middle East and Central Asia 11,426,736 2019 31   Egypt
  Iran
  Pakistan
  Saudi Arabia
  United Arab Emirates
Latin America and the Caribbean 10,284,588 2019 33   Argentina
  Brazil
  Colombia
  Mexico
  Venezuela
Emerging and developing Europe 10,065,845 2019 16   Poland
  Russia
  Turkey
Sub-Saharan Africa 4,332,378 2019 45   Nigeria
  South Africa

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) as of 2019. Members of the G-20 major economies are in bold.

List of the 25 largest economies
by GDP (nominal) at their peak level as of 2019 in millions US$
[6]
List of the 25 largest economies
by GDP (PPP) at their peak level as of 2019 in millions US$
[7]
List of the 25 economies by highest
GDP (nominal) per capita at their peak level as of 2019 in US$
List of the 25 economies by highest
GDP (PPP) per capita at their peak level as of 2019 in US$
Rank Country Value
(USD$)
Peak year
World 86,598,831 2019
1   United States 21,439,453 2019
  European Union 19,226,235 2008
2   China 14,140,163 2019
3   Japan 6,203,212 2012
4   Germany 3,951,340 2018
5   United Kingdom 3,085,300 2007
6   India 2,935,570 2019
7   France 2,929,983 2008
8   Brazil 2,613,979 2011
9   Italy 2,400,232 2008
10   Russia 2,292,464 2013
11   Canada 1,846,595 2013
12   South Korea 1,720,489 2018
13   Spain 1,641,514 2008
14   Australia 1,569,104 2012
15   Mexico 1,314,569 2014
16   Indonesia 1,111,713 2019
17   Netherlands 951,766 2008
18   Turkey 950,328 2013
19   Saudi Arabia 786,522 2018
20    Switzerland 715,360 2019
21   Argentina 642,928 2017
22   Taiwan 589,906 2018
23   Poland 585,816 2018
24   Sweden 584,638 2013
25   Iran 577,214 2011
Rank Country Value
(USD$)
Peak year
World 141,859,625 2019
1   China 27,308,857 2019
  European Union 22,774,165 2019
2   United States 21,439,453 2019
3   India 11,325,669 2019
4   Japan 5,747,496 2019
5   Germany 4,444,368 2019
6   Russia 4,349,423 2019
7   Indonesia 3,737,484 2019
8   Brazil 3,456,357 2019
9   United Kingdom 3,131,199 2019
10   France 3,061,143 2019
11   Mexico 2,627,851 2019
12   Italy 2,442,768 2019
13   Turkey 2,346,576 2019
14   South Korea 2,319,585 2019
15   Spain 1,940,539 2019
16   Canada 1,899,935 2019
17   Saudi Arabia 1,898,511 2019
18   Iran 1,637,215 2017
19   Egypt 1,391,256 2019
20   Thailand 1,383,022 2019
21   Australia 1,364,835 2019
22   Taiwan 1,300,212 2019
23   Poland 1,286,920 2019
24   Nigeria 1,216,797 2019
25   Pakistan 1,202,091 2019
Rank Country Value
(USD$)
Peak year
1   Luxembourg 120,449 2014
2   Norway 102,577 2013
3   Qatar 101,933 2012
4    Switzerland 88,903 2011
5   Macau 86,998 2014
6   San Marino 79,110 2008
7   Ireland 78,335 2018
8   Iceland 74,515 2018
9   Australia 68,436 2012
10   United States 65,112 2019
11   Singapore 64,579 2019
12   Denmark 64,531 2008
13   Sweden 60,616 2013
14   Netherlands 58,015 2008
15   Finland 53,744 2008
16   Canada 52,744 2012
17   Austria 51,914 2008
18   United Kingdom 50,316 2007
19   Hong Kong 49,334 2019
20   Belgium 48,814 2008
21   Japan 48,633 2012
22   Germany 48,036 2014
23   Brunei 47,772 2012
24   France 47,155 2008
25   Kuwait 45,726 2012
Rank Country Value
(USD$)
Peak year
1   Qatar 146,982 2012
2   Macau 133,021 2013
3   Luxembourg 108,951 2019
4   Singapore 103,181 2019
5   United Arab Emirates 92,037 2004
6   Brunei 83,785 2012
7   Ireland 83,399 2019
8   Norway 76,684 2019
9   San Marino 74,664 2008
10   Kuwait 71,036 2013
11    Switzerland 66,196 2019
12   United States 65,112 2019
13   Hong Kong 64,928 2019
14   Netherlands 58,341 2019
15   Iceland 56,066 2019
16   Saudi Arabia 55,730 2018
17   Taiwan 55,078 2019
18   Sweden 54,628 2019
19   Denmark 53,882 2019
20   Germany 53,567 2019
21   Austria 53,558 2019
22   Australia 53,379 2019
23   Bahrain 50,931 2019
24   Canada 50,725 2019
25   Belgium 49,529 2019

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   Mexico
16   Saudi Arabia   Netherlands   Mexico   India   Russia   Netherlands   Netherlands   Netherlands   Indonesia
17   Sweden   Sweden   South Korea    Switzerland   Australia   Iran   Turkey   Turkey   Netherlands
18   Belgium   Saudi Arabia    Switzerland   Russia    Switzerland   Turkey   Indonesia   Indonesia   Turkey
19    Switzerland    Switzerland   Sweden   Belgium   Taiwan    Switzerland    Switzerland   Saudi Arabia   Saudi Arabia
20   Iran   South Korea   Turkey   Argentina   Argentina   Sweden   Iran    Switzerland    Switzerland

Twenty largest economies in the world by GDP (PPP)Edit

The following is a list of twenty largest economies by GDP based on purchasing power parity at peak value as of the specific year according to the International Monetary Fund and the CIA World Factbook.[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   West Germany   West Germany   Soviet Union   Germany   Germany   India   Japan   Japan   Japan
5   Italy   Italy   Italy   Russia   India   Germany   Russia   Germany   Germany
6   Brazil   France   France   India   Russia   Russia   Germany   Russia   Russia
7   France   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   Spain
16   Argentina   Saudi Arabia   Turkey   South Korea   Saudi Arabia   Iran   Iran   Canada   Saudi Arabia
17   Iran   Turkey   Iran   Turkey   Turkey   Saudi Arabia   Turkey   Spain   Canada
18   Netherlands   Australia   South Korea   Iran   Iran   Turkey   Saudi Arabia   Iran   Iran
19   Turkey   Netherlands   Australia   Australia   Australia   Australia   Australia   Australia   Egypt
20   Poland   Argentina   Netherlands   Thailand   Netherlands   Thailand   Taiwan   Thailand   Thailand

Statistical indicatorsEdit

EconomyEdit

 
Countries by total wealth (billions USD), Credit Suisse, 2018

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.),[16] 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.),[17] 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

 
A pie chart showing global military expenditures by country for 2018, in US$ billions, according to SIPRI.
  • World military expenditure in 2018: estimated to $1.822 trillion [22]
  • 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 and 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)". Archived from the original on 25 March 2017. 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. Archived from the original on 2015-10-11. Retrieved 2015-10-15.
  4. ^ [1] Archived 2018-10-10 at the Wayback Machine IMF GDP 2018 Data (October 2018)
  5. ^ a b "Gross domestic product". IMF World Economic Outlook. October 2018. Retrieved 7 May 2019.
  6. ^ [2] IMF GDP (Nominal) Data (October 2019)
  7. ^ [3] IMF GDP (PPP) Data (October 2019)
  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. October 2018. Archived from the original on 3 April 2019. Retrieved 14 May 2017.
  10. ^ "GDP (PURCHASING POWER PARITY)". CIA World Factbook. CIA World Factbook. 2014. Archived from the original on June 25, 2014. Retrieved October 7, 2014.
  11. ^ Based on the IMF data. If no data was available for a country from IMF, data from the World Bank is used.
  12. ^ "IMF World Economic Outlook, Crisis and Recovery, April 2009". Imf.org. 2009-04-16. Archived from the original on 2012-05-19. Retrieved 2012-07-17.
  13. ^ "World Economic Situation and Prospects 2018". United Nations Department of Economic and Social Affairs, Development Policy and Analysis Division. Table A.3. ISBN 978-92-1-109177-9. Archived from the original on 2018-03-03. Retrieved 2018-03-02.
  14. ^ B. Milanovic (January 2002). "True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone" (PDF). Archived (PDF) from the original on 2011-11-01. Retrieved 13 May 2011.
  15. ^ a b "World Economic Situation and Prospects 2018". United Nations Department of Economic and Social Affairs, Development Policy and Analysis Division. Table I.2. p. 11. ISBN 978-92-1-109177-9. Archived from the original on 2018-03-03. Retrieved 2018-03-02.
  16. ^ "International Energy Statistics". Archived from the original on 16 August 2016. Retrieved 1 April 2017.
  17. ^ "International Energy Statistics". Archived from the original on 4 March 2016. Retrieved 1 April 2017.
  18. ^ "Development aid stable in 2014 but flows to poorest countries still falling". OECD. 2015-04-08. Archived from the original on 2015-07-23. Retrieved 2015-07-23.
  19. ^ global cellphone penetration reaches 50 percent Archived 2008-12-17 at the Wayback Machine
  20. ^ "World Internet Usage Statistics News and World Population Stats". Internetworldstats.com. Archived from the original on 2011-06-23. Retrieved 2015-06-08.
  21. ^ "The World Factbook — Central Intelligence Agency". Archived from the original on 25 June 2014. Retrieved 1 April 2017.
  22. ^ "3. Military expenditure - SIPRI". Archived from the original on 25 May 2017. Retrieved 1 April 2017.

External linksEdit