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Visualizing the $94 Trillion World Economy in One Chart – Visual Capitalist

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The $94 Trillion World Economy in One Chart

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Just four countries—the U.S., China, Japan, and Germany—make up over half of the world’s economic output by gross domestic product (GDP) in nominal terms. In fact, the GDP of the U.S. alone is greater than the combined GDP of 170 countries.

How do the different economies of the world compare? In this visualization we look at GDP by country in 2021, using data and estimates from the International Monetary Fund (IMF).

An Overview of GDP

GDP serves as a broad indicator for a country’s economic output. It measures the total market value of final goods and services produced in a country in a specific timeframe, such as a quarter or year. In addition, GDP also takes into consideration the output of services provided by the government, such as money spent on defense, healthcare, or education.

Generally speaking, when GDP is increasing in a country, it is a sign of greater economic activity that benefits workers and businesses (while the reverse is true for a decline).

The World Economy: Top 50 Countries

Who are the biggest contributors to the global economy? Here is the ranking of the 50 largest countries by GDP in 2021:

Rank Country GDP ($T) % of Global GDP
1 🇺🇸 U.S. $22.9 24.4%
2 🇨🇳 China $16.9 17.9%
3 🇯🇵 Japan $5.1 5.4%
4 🇩🇪 Germany $4.2 4.5%
5 🇬🇧 UK $3.1 3.3%
6 🇮🇳 India $2.9 3.1%
7 🇫🇷 France $2.9 3.1%
8 🇮🇹 Italy $2.1 2.3%
9 🇨🇦 Canada $2.0 2.1%
10 🇰🇷 Korea $1.8 1.9%
11 🇷🇺 Russia $1.6 1.7%
12 🇧🇷 Brazil $1.6 1.7%
13 🇦🇺 Australia $1.6 1.7%
14 🇪🇸 Spain $1.4 1.5%
15 🇲🇽 Mexico $1.3 1.4%
16 🇮🇩 Indonesia $1.2 1.2%
17 🇮🇷 Iran $1.1 1.1%
18 🇳🇱 Netherlands $1.0 1.1%
19 🇸🇦 Saudi Arabia $0.8 0.9%
20 🇨🇭 Switzerland $0.8 0.9%
21 🇹🇷 Turkey $0.8 0.8%
22 🇹🇼 Taiwan $0.8 0.8%
23 🇵🇱 Poland $0.7 0.7%
24 🇸🇪 Sweden $0.6 0.7%
25 🇧🇪 Belgium $0.6 0.6%
26 🇹🇭 Thailand $0.5 0.6%
27 🇮🇪 Ireland $0.5 0.5%
28 🇦🇹 Austria $0.5 0.5%
29 🇳🇬 Nigeria $0.5 0.5%
30 🇮🇱 Israel $0.5 0.5%
31 🇦🇷 Argentina $0.5 0.5%
32 🇳🇴 Norway $0.4 0.5%
33 🇿🇦 South Africa $0.4 0.4%
34 🇦🇪 UAE $0.4 0.4%
35 🇩🇰 Denmark $0.4 0.4%
36 🇪🇬 Egypt $0.4 0.4%
37 🇵🇭 Philippines $0.4 0.4%
38 🇸🇬 Singapore $0.4 0.4%
39 🇲🇾 Malaysia $0.4 0.4%
40 🇭🇰 Hong Kong SAR $0.4 0.4%
41 🇻🇳 Vietnam $0.4 0.4%
42 🇧🇩 Bangladesh $0.4 0.4%
43 🇨🇱 Chile $0.3 0.4%
44 🇨🇴 Colombia $0.3 0.3%
45 🇫🇮 Finland $0.3 0.3%
46 🇷🇴 Romania $0.3 0.3%
47 🇨🇿 Czech Republic $0.3 0.3%
48 🇵🇹 Portugal $0.3 0.3%
49 🇳🇿 New Zealand $0.2 0.3%
50 🇵🇪 Peru $0.2 0.2%

At $22.9 trillion, the U.S. GDP accounts for roughly 25% of the global economy, a share that has actually changed significantly over the last 60 years. The finance, insurance, and real estate ($4.7 trillion) industries add the most to the country’s economy, followed by professional and business services ($2.7 trillion) and government ($2.6 trillion).

China’s economy is second in nominal terms, hovering at near $17 trillion in GDP. It remains the largest manufacturer worldwide based on output with extensive production of steel, electronics, and robotics, among others.

The largest economy in Europe is Germany, which exports roughly 20% of the world’s motor vehicles. In 2019, overall trade equaled nearly 90% of the country’s GDP.

The World Economy: 50 Smallest Countries

On the other end of the spectrum are the world’s smallest economies by GDP, primarily developing and island nations.

With a GDP of $70 million, Tuvalu is the smallest economy in the world. Situated between Hawaii and Australia, the largest industry of this volcanic archipelago relies on territorial fishing rights.

In addition, the country earns significant revenue from its “.tv” web domain. Between 2011 and 2019, it earned $5 million annually from companies—including Amazon-owned Twitch to license the Twitch.tv domain name—equivalent to roughly 7% of the country’s GDP.

Countries Region GDP (B)
🇹🇻 Tuvalu Oceania $0.07
🇳🇷 Nauru Oceania $0.1
🇵🇼 Palau Oceania $0.2
🇰🇮 Kiribati Oceania $0.2
🇲🇭 Marshall Islands Oceania $0.2
🇫🇲 Micronesia Oceania $0.4
🇹🇴 Tonga Oceania $0.5
🇸🇹 São Tomé and Príncipe Central America $0.5
🇩🇲 Dominica Caribbean $0.6
🇻🇨 St. Vincent and the Grenadines Caribbean $0.8
🇼🇸 Samoa Oceania $0.8
🇰🇳 St. Kitts and Nevis Caribbean $1.0
🇻🇺 Vanuatu Oceania $1.0
🇬🇩 Grenada Caribbean $1.1
🇰🇲 Comoros Africa $1.3
🇸🇨 Seychelles Africa $1.3
🇦🇬 Antigua and Barbuda Caribbean $1.4
🇬🇼 Guinea-Bissau Africa $1.6
🇸🇧 Solomon Islands Oceania $1.7
🇹🇱 Timor-Leste Asia $1.7
🇱🇨 St. Lucia Caribbean $1.7
🇸🇲 San Marino Europe $1.7
🇨🇻 Cabo Verde Africa $1.9
🇧🇿 Belize Central America $1.9
🇬🇲 Gambia Africa $2.0
🇪🇷 Eritrea Africa $2.3
🇱🇸 Lesotho Africa $2.5
🇧🇹 Bhutan Asia $2.5
🇨🇫 Central African Republic Africa $2.6
🇸🇷 Suriname South America $2.8
🇦🇼 Aruba Caribbean $2.9
🇧🇮 Burundi Africa $3.2
🇦🇩 Andorra Europe $3.2
🇸🇸 South Sudan Africa $3.3
🇱🇷 Liberia Africa $3.4
🇩🇯 Djibouti Africa $3.7
🇸🇱 Sierra Leone Africa $4.4
🇸🇿 Eswatini Africa $4.5
🇲🇻 Maldives Asia $4.6
🇫🇯 Fiji Oceania $4.6
🇧🇧 Barbados Caribbean $4.7
🇸🇴 Somalia Africa $5.4
🇲🇪 Montenegro Europe $5.5
🇬🇾 Guyana South America $7.4
🇹🇯 Tajikistan Asia $8.1
🇰🇬 Kyrgyz Republic Asia $8.2
🇹🇬 Togo Africa $8.5
🇽🇰 Kosovo Europe $9.0
🇲🇷 Mauritania Africa $9.2
🇷🇼 Rwanda Africa $10.4

Like Tuvalu, many of the world’s smallest economies are in Oceania, including Nauru, Palau, and Kiribati. Additionally, several countries above rely on the tourism industry for over one-third of their employment.

The Fastest Growing Economies in the World in 2021

With 123% projected GDP growth, Libya’s economy is estimated to have the sharpest rise.

Oil is propelling its growth, with 1.2 million barrels being pumped in the country daily. Along with this, exports and a depressed currency are among the primary factors behind its recovery.

Rank Country Region

2021 Real GDP Growth (Annual % Change)

1 🇱🇾 Libya Africa 123.2%
2 🇬🇾 Guyana South America 20.4%
3 🇲🇴 Macao Asia 20.4%
4 🇲🇻 Maldives Asia 18.9%
5 🇮🇪 Ireland Europe 13.0%
6 🇦🇼 Aruba Caribbean 12.8%
7 🇵🇦 Panama Central America 12.0%
8 🇨🇱 Chile South America 11.0%
9 🇵🇪 Peru South America 10.0%
10 🇩🇴 Dominican Republic Caribbean 9.5%

Ireland’s economy, with a projected 13% real GDP growth, is being supported by the largest multinational corporations in the world. Facebook, TikTok, Google, Apple, and Pfizer all have their European headquarters in the country, which has a 12.5% corporate tax rate—or about half the global average. But these rates are set to change soon, as Ireland joined the OECD 15% minimum corporate tax rate agreement which was finalized in October 2021.

Macao’s economy bounced back after COVID-19 restrictions began to lift, but more storm clouds are on the horizon for the Chinese district. The CCP’s anti-corruption campaign and recent arrests could signal a more strained relationship between Mainland China and the world’s largest gambling hub.

Looking Ahead at the World’s GDP

The global GDP figure of $94 trillion may seem massive to us today, but such a total might seem much more modest in the future.

In 1970, the world economy was only about $3 trillion in GDP—or 30 times smaller than it is today. Over the next thirty years, the global economy is expected to more or less double again. By 2050, global GDP could total close to $180 trillion.

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Canadian dollar rises as selloff in U.S. bonds ebbs

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The Canadian dollar strengthened against the greenback on Thursday as U.S. bond yields stabilized and Ontario, Canada’s most populous province, said it would soon ease restrictions to curb the spread of the Omicron coronavirus variant.

The loonie was trading 0.3% higher at 1.2472 to the greenback, or 80.18 U.S. cents, after trading in a range of 1.2454 to 1.2516.

Among G10 currencies, only the Australian dollar notched a bigger gain. Both Canada and Australia are major producers of commodities.

“Interest rate differentials are tilting against the (U.S.)dollar, lifting the appeal of currencies leveraged to rest-of-world growth,” said Karl Schamotta, chief market strategist at Corpay.

U.S. Treasury yields have pulled back from 2-year highs as data showed that the number of Americans filing new claims for unemployment benefits unexpectedly rose last week.

Ontario has blunted transmission of the Omicron variant and it will gradually ease restrictions on businesses from end-January, Premier Doug Ford said.

Despite the prospect of slower economic growth due to restrictions, investors have raised bets that the Bank of Canada will hike interest rates on Jan. 26. It would be the first hike since October 2018.

Data from payroll services provider ADP showed that Canada added 19,200 jobs in December, the fifth straight month of gains

Canadian retail sales data, due on Friday, could offer more clues on the strength of the domestic economy.

The price of oil, one of Canada’s major exports, settled 0.1% lower at $86.90 a barrel as U.S. crude inventories rose for the first time in eight weeks and investors took profits after a recent rally.

Canadian government bond yields were mixed across a flatter curve. The 10-year eased 2.4 basis points to 1.857%, after touching on Wednesday its highest intraday level since March 2019 at 1.905%.

 

(Reporting by Fergal Smith; Editing by Jonathan Oatis and Sandra Maler)

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Toronto market hits 2-week low as rate hike angst weighs

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Canada’s main stock index on Thursday fell to its lowest level in more than two weeks as worries about the inflation outlook and prospects for higher interest rates weighed on investor sentiment.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 146.98 points, or 0.7%, at 21,058.18, its lowest closing level since Jan. 5.

“The non-stop inflation headlines, talk about interest rates have scared the market,” said Barry Schwartz, a portfolio manager at Baskin Financial Services.

Data on Wednesday showed that Canadian inflation climbed in December to a 30-year high.

Investors have raised bets on the Bank of Canada hiking interest rates at a policy announcement next week and are also concerned the Federal Reserve could become aggressive in controlling inflation.

The TSX gained 22% in 2021, its best yearly performance since 2009, supported by massive stimulus, vaccine rollouts and hopes of global economic recovery.

“The markets are deciding that the last few years people have made way too much money and it is time to give some of that back,” Schwartz said.

Broad-based gains included a 2.2% decline for consumer discretionary shares, while the basic materials group, which includes precious and base metals miners and fertilizer companies, ended 1.8% lower.

Energy was down 0.7% as an uptick in U.S. crude inventories arrested the recent move higher in oil prices. U.S. crude oil futures settled 0.1% lower at $86.90 a barrel.

Heavily weighted financials fell 0.4%.

Among 11 major sectors, utilities was the only one to end higher, gaining 0.2%.

 

(Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; editing by Jonathan Oatis)

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Any sanctions on Russia would not widely impact global, U.S. economy -White House – National Post

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WASHINGTON — Any sanctions imposed on Russia over its aggression toward Ukraine would not particularly expose the U.S. economy, although the Biden administration is focused on any possible impact on oil, White House National Economic Council Director Brian Deese said on Thursday.

“The actions that we have ready and that we are working closely with our allies to deploy would impose very significant costs across time on the Russian economy, and it would do so in a way that mitigates the impact on the global economy and the American economy,” he told CNN. (Reporting by Susan Heavey Editing by Raissa Kasolowsky)

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