World economy

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.

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 & 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, India, Germany, France, 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) 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 growth

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]
RankCountryValue
(USD$)
Peak year
World87,504,5672018
1 United States20,412,8702018
 European Union19,669,7432018
2 China14,092,5142018
3 Japan6,203,2132012
4 Germany4,211,6352018
5 United Kingdom3,075,5382007
6 France2,937,3212008
7 India2,848,2312018
8 Brazil2,613,8592011
9 Italy2,402,0622008
10 Russia2,297,1252013
11 Canada1,842,6272013
12 South Korea1,693,2462018
13 Spain1,642,7652008
14 Australia1,566,5332012
15 Mexico1,314,3902014
16 Indonesia1,074,9662018
17 Turkey950,3282013
18 Netherlands945,3272018
19 Saudi Arabia756,3502014
20  Switzerland741,6882018
21 Argentina642,4642015
22 Poland614,1902018
23 Taiwan613,2952018
24 Sweden600,7712018
25 Iran577,2142011
RankCountryValue
(USD$)
Peak year
World134,981,0372018
1 China25,238,5632018
 European Union21,998,4682018
2 United States20,412,8702018
3 India10,385,4322018
4 Japan5,619,4922018
5 Germany4,373,9512018
6 Russia4,168,8842018
7 Indonesia3,492,2082018
8 Brazil3,388,9622018
9 United Kingdom3,028,5662018
10 France2,960,2512018
11 Mexico2,571,6802018
12 Italy2,399,8252018
13 Turkey2,320,6412018
14 South Korea2,138,2422018
15 Spain1,864,1052018
16 Canada1,847,0812018
17 Saudi Arabia1,844,7512018
18 Iran1,749,4282018
19 Australia1,312,5342018
20 Thailand1,310,5732018
21 Egypt1,292,7452018
22 Taiwan1,234,8622018
23 Poland1,193,1122018
24 Nigeria1,168,3992018
25 Pakistan1,141,2102018

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 France
7 Italy Italy Italy Brazil China Italy Italy Brazil United Kingdom
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 Australia
14 Netherlands Spain Australia Netherlands India Russia South Korea South Korea Spain
15 Australia Iran Netherlands Australia Netherlands Australia Mexico Mexico Mexico
16 Saudi Arabia Netherlands Mexico India Russia Netherlands Netherlands Turkey Indonesia
17 Sweden Sweden South Korea  Switzerland Australia Iran Turkey Netherlands Netherlands
18 Belgium Saudi Arabia  Switzerland Russia  Switzerland Turkey Indonesia Indonesia Turkey
19  Switzerland  Switzerland Sweden Belgium Taiwan  Switzerland  Switzerland Saudi Arabia  Switzerland
20 Iran South Korea Turkey Argentina Argentina Sweden Iran  Switzerland Saudi Arabia

Twenty largest economies in the world by PPP GDP (IMF and CIA World Factbook)

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]

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 Italy West Germany Soviet Union Germany Germany India Japan Japan Japan
5 West Germany Italy Italy Russia India Germany Russia Russia Germany
6 France France France India Russia Russia Germany Germany 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
Rank198019851990199520002005201020152020
11 China Mexico Mexico Mexico Mexico Mexico Indonesia Mexico Mexico
12 Spain Canada Canada Indonesia Indonesia Indonesia Mexico Italy Turkey
13 Canada Spain Indonesia Spain Spain Spain Spain Turkey Italy
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 Canada
17 Iran Turkey Iran Turkey Turkey Saudi Arabia Turkey Spain Saudi Arabia
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 2012: estimated to $1.756 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)". 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. IMF GDP 2017 Data (April 2017)
  5. 1 2 "Gross domestic product". IMF World Economic Outlook. April 2017. Retrieved 14 April 2017.
  6. IMF GDP (Nominal) Data (April 2018)
  7. IMF GDP (PPP) Data (April 2018)
  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. "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. Retrieved 2018-03-02.
  13. B. Milanovic (January 2002). "True World Income Distribution, 1988 and 1993: First Calculation Based on Household Surveys Alone" (PDF). Retrieved 13 May 2011.
  14. "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. Retrieved 2018-03-02.
  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. Retrieved 2018-03-02.
  16. "International Energy Statistics". Retrieved 1 April 2017.
  17. "International Energy Statistics". Retrieved 1 April 2017.
  18. "Development aid stable in 2014 but flows to poorest countries still falling". OECD. 2015-04-08. 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. Retrieved 2015-06-08.
  21. "The World Factbook — Central Intelligence Agency". Retrieved 1 April 2017.
  22. "3. Military expenditure - SIPRI". Retrieved 1 April 2017.
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