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. 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$2 trillion by GDP in nominal or PPP terms: Brazil, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Turkey, the United Kingdom, the United States and the European Union.
World economy by country groups
|List of country groups by GDP (nominal) at peak level as of 2019 in millions US$||List of country groups by GDP (PPP) at peak level as of 2019 in millions US$|
Current world economic league table of largest economies in the world by GDP and share of global economic growth
|List of the 25 largest economies
by GDP (nominal) at their peak level as of 2019 in millions US$
|List of the 25 largest economies
by GDP (PPP) at their peak level as of 2019 in millions US$
|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$
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.
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.
- 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): (market exchange rates) – $60.69 trillion (2008)
- GDP (real growth rate):
- 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)
- GDP – composition by sector: agriculture: 4%; industry: 32%; services: 64% (2004 est.)
- Inflation rate (consumer prices); 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) ()
- Derivatives exchange traded outstanding notional amount: $82 trillion (June 2011) ()
- 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)
- Industrial production growth rate: 3% (2002 est.)
- Yearly electricity – production: 21,080,878 GWh (2011 est.), 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.), 2,569 km3 (2001 est.)
- Natural gas – consumption: 2,556 km3 (2001 est.)
- Natural gas – proved reserves: 161,200 km3 (1 January 2002)
- 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.)
- Yearly economic aid – recipient: net Official Development Assistance (ODA) of $135.2 billion (2014)
Telephones – main lines in use: 843,923,500 (2007)
Transportation infrastructure worldwide includes:
- Roadways (in kilometres)
- Total: 32,345,165 km
- Paved: 19,403,061 km
- Unpaved: 12,942,104 km (2002)
- World military expenditure in 2018: estimated to $1.822 trillion
- Military expenditures – percent of GDP: roughly 2% of gross world product (1999).
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.
- Common Wealth: Economics for a Crowded Planet (book)
- Economic bubble
- Economic collapse
- Economic history of the world
- Emerging and growth-leading economies
- Global financial system
- Global workforce
- Trade route
- Petrodollar recycling
- World Trade Report
- World systems theory
- Economy of Africa
- Economy of Asia
- Economy of Europe
- Economy of North America
- Economy of Oceania
- Economy of South America
- 2007–2008 world food price crisis
- Late 2000s recession
- Oil price increases since 2003
- List of countries by GDP sector composition
- List of world's largest economies (nominal) – based on current currency market exchange rates
- List of world's largest economies (PPP) – based on purchasing power parity
- Historical list of world's largest economies (PPP) – for the years between 1 and 1998
- List of world production
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- UN DESA – World Economy publications
- CIA – The World Factbook – World
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- BBC News Special Report – Global Economy
- Guardian Special Report – Global Economy
- World Bank Summary Trade Statistics for World