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. 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 2020, 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.
Overview
World economy by country groups
The following two tables list the country groups with individual countries designated by the IMF. Members of the G-20 major economies are in bold.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, twenty largest economies by GDP as of 2019. Members of the G-20 major economies are in bold.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 the International Monetary Fund.Rank | 1980 | 1985 | 1990 | 1995 | 2000 | 2005 | 2010 | 2015 | 2020 |
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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.Rank | 1980 | 1985 | 1990 | 1995 | 2000 | 2005 | 2010 | 2015 | 2020 |
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Statistical indicators
Economy
- GDP : – $59.38 trillion, $51.48 trillion, $23 trillion
- GDP : – $60.69 trillion
- GDP :
- * Developed Economies 2.2%, 2.0%
- * Developing Countries 4.3%, 4.6%
- * Least developed countries 4.8%, 5.4%
- GDP – per capita: purchasing power parity – $9,300, €7,500, $8,200, €6,800 , $7,900, €5,000
- World median income: purchasing power parity $1,041, €950
- GDP – composition by sector: agriculture: 4%; industry: 32%; services: 64%
- Inflation rate ; national inflation rates vary widely in individual cases, from declining prices in Japan to hyperinflation in several Third World countries :
- * World 2.6%, 2.8% ;
- * Developed Economies 1% to 4% typically
- * Developing Countries 5% to 60% typically
- * Least developed countries 11.4%, 8.3%
- Derivatives OTC outstanding notional amount: $601 trillion
- Derivatives exchange traded outstanding notional amount: $82 trillion
- Global debt issuance: $5.187 trillion, €3 trillion, $4.938 trillion, €3.98 trillion, $3.938 trillion
- Global equity issuance: $505 billion, €450 billion, $388 billion. €320 billion, $319 billion, €250 trillion
Employment
- Unemployment rate: 8.7%. 30% combined unemployment and underemployment in many non-industrialized countries; developed countries typically 4%–12% unemployment.
Industries
- Industrial production growth rate: 3%
Energy
- Yearly electricity – production: 21,080,878 GWh, 15,850,000 GWh, 14,850,000 GWh
- Yearly electricity – consumption: 14,280,000 GWh, 13,930,000 GWh
- Oil – production: ,
- Oil – consumption: ,
- Oil – proved reserves: 1.025 trillion barrel
- Natural gas – production: 3,366 km3, 2,569 km3
- Natural gas – consumption: 2,556 km3
- Natural gas – proved reserves: 161,200 km3
Cross-border
- Yearly exports: $12.4 trillion, €11.05 trillion
- 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%
- Yearly imports: $12.29 trillion, €10.95 trillion
- 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%
- Debt – external: $56.9 trillion, €40 trillion
Gift economy
- Yearly economic aid – recipient: net Official Development Assistance of $135.2 billion
Communications
4,263,367,600
- Telephones – mobile cellular: 3,300,000,000
- Internet Service Providers : 10,350
- Internet users: 3,079,339,857, 360,985,492
Transport
- Airports
- * Total: 41,821
- Roadways
- * Total: 32,345,165 km
- * Paved: 19,403,061 km
- * Unpaved: 12,942,104 km
- Railways
- * Total: 1,122,650 km includes about 190,000 to 195,000 km of electrified routes of which 147,760 km are in Europe, 24,509 km in the Far East, 11,050 km in Africa, 4,223 km in South America, and 4,160 km in North America.
Military
- World military expenditure in 2018: estimated to $1.822 trillion
- Military expenditures – percent of GDP: roughly 2% of gross world product.
Historical development
Year | Population | GDP per capita | GDP in billion |
1000000 BCE | 0.125 | 400 | 0.05 |
300000 BCE | 1 | 400 | 0.40 |
25000 BCE | 3.34 | 400 | 1.34 |
10000 BCE | 4 | 400 | 1.60 |
5000 BCE | 5 | 404 | 2.02 |
4000 BCE | 7 | 409 | 2.87 |
3000 BCE | 14 | 421 | 5.90 |
2000 BCE | 27 | 433 | 11.7 |
1000 BCE | 50 | 444 | 22.2 |
500 BCE | 100 | 457 | 45.7 |
200 BCE | 150 | 465 | 69.7 |
1 | 168 | 467 | 78.4 |
200 | 190 | 463 | 88.0 |
400 | 190 | 463 | 88.0 |
500 | 190 | 463 | 88.0 |
600 | 200 | 462 | 92.3 |
700 | 210 | 460 | 96.6 |
800 | 220 | 459 | 101 |
900 | 240 | 456 | 109 |
1000 | 265 | 453 | 120 |
1100 | 320 | 512 | 164 |
1200 | 360 | 551 | 198 |
1300 | 360 | 551 | 198 |
1400 | 350 | 541 | 190 |
1500 | 438 | 625 | 274 |
1600 | 556 | 629 | 350 |
1700 | 603 | 658 | 397 |
1820 | 1,042 | 712 | 741 |
1870 | 1,276 | 884 | 1,128 |
1900 | 1,563 | ||
1913 | 1,793 | 1,543 | 2,767 |
1920 | 1,863 | ||
1940 | 2,299 | 2,181 | 5,013 |
1950 | 2,528 | 2,104 | 5,318 |
1960 | 3,042 | 2,764 | 12,170 |
1970 | 3,691 | 3,725 | 13,751 |
1980 | 4,440 | 4,511 | 20,026 |
1990 | 5,269 | 5,149 | 27,133 |
2000 | 6,077 | 6,057 | 36,806 |
2010 | 6,873 | 7,814 | 53,704 |
2019 | 7,620 | 9,663 | 73,640 |