World economy

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.

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]

Overview

World economy by country groups

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 growth

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$
RankCountryValue
(USD$)
Peak year
World86,598,8312019
1 United States21,439,4532019
 European Union19,226,2352008
2 China14,140,1632019
3 Japan6,203,2122012
4 Germany3,951,3402018
5 United Kingdom3,085,3002007
6 India2,935,5702019
7 France2,929,9832008
8 Brazil2,613,9792011
9 Italy2,400,2322008
10 Russia2,292,4642013
11 Canada1,846,5952013
12 South Korea1,720,4892018
13 Spain1,641,5142008
14 Australia1,569,1042012
15 Mexico1,314,5692014
16 Indonesia1,111,7132019
17 Netherlands951,7662008
18 Turkey950,3282013
19 Saudi Arabia786,5222018
20  Switzerland715,3602019
21 Argentina642,9282017
22 Taiwan589,9062018
23 Poland585,8162018
24 Sweden584,6382013
25 Iran577,2142011
RankCountryValue
(USD$)
Peak year
World141,859,6252019
1 China27,308,8572019
 European Union22,774,1652019
2 United States21,439,4532019
3 India11,325,6692019
4 Japan5,747,4962019
5 Germany4,444,3682019
6 Russia4,349,4232019
7 Indonesia3,737,4842019
8 Brazil3,456,3572019
9 United Kingdom3,131,1992019
10 France3,061,1432019
11 Mexico2,627,8512019
12 Italy2,442,7682019
13 Turkey2,346,5762019
14 South Korea2,319,5852019
15 Spain1,940,5392019
16 Canada1,899,9352019
17 Saudi Arabia1,898,5112019
18 Iran1,637,2152017
19 Egypt1,391,2562019
20 Thailand1,383,0222019
21 Australia1,364,8352019
22 Taiwan1,300,2122019
23 Poland1,286,9202019
24 Nigeria1,216,7972019
25 Pakistan1,202,0912019
RankCountryValue
(USD$)
Peak year
1 Luxembourg120,4492014
2 Norway102,5772013
3 Qatar101,9332012
4  Switzerland88,9032011
5 Macau86,9982014
6 San Marino79,1102008
7 Ireland78,3352018
8 Iceland74,5152018
9 Australia68,4362012
10 United States65,1122019
11 Singapore64,5792019
12 Denmark64,5312008
13 Sweden60,6162013
14 Netherlands58,0152008
15 Finland53,7442008
16 Canada52,7442012
17 Austria51,9142008
18 United Kingdom50,3162007
19 Hong Kong49,3342019
20 Belgium48,8142008
21 Japan48,6332012
22 Germany48,0362014
23 Brunei47,7722012
24 France47,1552008
25 Kuwait45,7262012
RankCountryValue
(USD$)
Peak year
1 Qatar146,9822012
2 Macau133,0212013
3 Luxembourg108,9512019
4 Singapore103,1812019
5 United Arab Emirates92,0372004
6 Brunei83,7852012
7 Ireland83,3992019
8 Norway76,6842019
9 San Marino74,6642008
10 Kuwait71,0362013
11  Switzerland66,1962019
12 United States65,1122019
13 Hong Kong64,9282019
14 Netherlands58,3412019
15 Iceland56,0662019
16 Saudi Arabia55,7302018
17 Taiwan55,0782019
18 Sweden54,6282019
19 Denmark53,8822019
20 Germany53,5672019
21 Austria53,5582019
22 Australia53,3792019
23 Bahrain50,9312019
24 Canada50,7252019
25 Belgium49,5292019

Twenty largest economies in the world by nominal GDP

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]

Rank198019851990199520002005201020152020
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
Rank198019851990199520002005201020152020
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)

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]

Rank198019851990199520002005201020152020
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
Rank198019851990199520002005201020152020
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 indicators

Economy

Employment

  • Unemployment rate: 8.7% (2009 est.). 30% (2007 est.) combined unemployment and underemployment in many non-industrialized countries; developed countries typically 4%–12% unemployment.

Industries

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

Energy

  • 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-border

  • 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 economy

Communications

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

Transport

Transportation infrastructure worldwide includes:

Military

  • World military expenditure in 2018: estimated to $1.822 trillion [22]
  • Military expenditures – percent of GDP: roughly 2% of gross world product (1999).

Economic studies

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 also

Regional economies:

Events:

Lists:

References

  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. Archived 2018-10-10 at the Wayback Machine IMF GDP 2018 Data (October 2018)
  5. "Gross domestic product". IMF World Economic Outlook. October 2018. Retrieved 7 May 2019.
  6. IMF GDP (Nominal) Data (October 2019)
  7. 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. "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.
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