The world economy, or global economy, is the economy of the world, considered as an international exchange of goods and services. Global economy is the economy of global society while country economies are focused within the specified country. Combining the country economies the world economy is made.
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 US 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 7.13 billion people have most of their economic activity reflected in these valuations.
In 2013, the largest economies in the world with more than $2 trillion, €1.25 trillion by nominal GDP were the United States, China, Japan, Germany, France, the United Kingdom, Brazil, Russia, Italy and India.
Economy â€" overview
The following three tables list the twenty-five largest economies by GDP (Nominal) in 2014, twenty-five largest economies by GDP (PPP) in 2014, and the twenty-five economies with the largest shares of global economic growth in 2014. 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 a specific year according to International Monetary Fund.
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 a specific year according to the CIA World Factbook and the International Monetary Fund.
Twenty Largest Economies in the World by PPP GDP (World Bank)
Data from the World Bank differs from the other two sources.
1980 â€" 1990 â€" The European Economic Community, the United States and Japan lead expansion
At exchange rates, the global economic output expanded by US$11.5 trillion from 1980 to 1990. The five largest contributors to global output contraction are Argentina, Saudi Arabia, Nigeria, the Democratic Republic of the Congo, and Venezuela. At purchasing power parity, the global economic output expanded by US$13.7 trillion from 1980 to 1990. The following two tables are lists of the 20 largest contributors to global economic growth from 1980 to 1990 by International Monetary Fund.
1990 â€" 2000 â€" United States dominates expansion
At exchange rates, the global economic output expanded by US$10.4 trillion from 1990 to 2000. At purchasing power parity, the global economic output expanded by US$22.0 trillion from 1990 to 2000.
2000 â€" 2010 â€" Rise of Developing and Emerging Economies
At exchange rates, the global economic output expanded by US$31.6 trillion from 2000 to 2010. At purchasing power parity, the global economic output expanded by US$38.9 trillion from 2010 to 2010.
IMF's economic outlook for 2010 noted that banks faced a "wall" of maturing debt, which presents important risks for the normalization of credit conditions. There has been little progress in lengthening the maturity of their funding and, as a result, over $4 trillion in debt is due to be refinanced in the next 2 years.`
While there have been some encouraging signs of economic recovery, especially in the United States, the global economic growth seems to be losing momentum. According to the IMF's World Economic Outlook report puplished in April 2012, "global growth is projected to drop from about 4 percent in 2011 to about 3½ percent in 2012 because of weak activity during the second half of 2011 and the first half of 2012."
The following two tables are lists of the 20 largest contributors to global economic growth from 2000 to 2010 by International Monetary Fund.
2010 â€" 2019 â€" China, the United States, the European Union, and India lead economic growth (estimates by IMF)
At exchange rates, the economic output of the world is expected to expand by US$36.9 trillion, €29.1 trillion from 2010 to 2019. The following two tables are predictive lists of the 50 countries with the largest contribution to global economic growth from 2010 to 2019 by International Monetary Fund.
Statistical indicators
Economy
- GDP (GWP) (gross world product): (purchasing power parity exchange rates) â€" $59.38 trillion (2005 est.), $51.48 trillion (2004), $23 trillion (2002)
- GDP (GWP) (gross world product): (market exchange rates) â€" $60.69 trillion (2008)
- GDP â€" real growth rate: 3.2% (2008), 3.1% p.a. (2000â€"07), 2.4% p.a. (1990â€"99), 3.1% p.a. (1980â€"89)
- GDP â€" per capita: purchasing power parity â€" $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 â€" composition by sector: agriculture: 4%; industry: 32%; services: 64% (2004 est.)
- Inflation rate (consumer prices): developed countries 1% to 4% typically; developing countries 5% to 60% typically; 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) ([11])
- Derivatives exchange traded outstanding notional amount: $82 trillion (June 2011) ([12])
- 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)
Employment
- Unemployment rate: 8.7% (2009 est.). 30% (2007 est.) combined unemployment and underemployment in many non-industrialized countries; developed countries typically 4%â€"12% unemployment.
Industries
- Industrial production growth rate: 3% (2002 est.)
Energy
- Yearly electricity â€" production: 21,080,878 GWh (2011 est.), 15,850,000 GWh (2003 est.), 14,850,000 GWh (2001 est.)
- Yearly electricity â€" consumption: 14,280,000 GWh (2003 est.), 13,930,000 GWh (2001 est.)
- Oil â€" 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 â€" 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 â€" proved reserves: 1.025 trillion barrel (163 km³) (2001 est.)
- Natural gas â€" production: 3,366 km³ (2012 est.), 2,569 km³ (2001 est.)
- Natural gas â€" consumption: 2,556 km³ (2001 est.)
- Natural gas â€" proved reserves: 161,200 km³ (1 January 2002)
Cross-border
- Yearly exports: $12.4 trillion, €8.75 trillion (2009 est.)
- Exports â€" commodities: the whole range of industrial and agricultural goods and services
- Exports â€" 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, €9 trillion (2009 est.)
- Imports â€" commodities: the whole range of industrial and agricultural goods and services
- Imports â€" partners: China 10.3%, Germany 8.6%, US 8.1%, Japan 5% (2008)
- Debt â€" external: $56.9 trillion, €40 trillion (31 December 2009 est.)
Gift economy
- Yearly economic aid â€" recipient: Official Development Assistance (ODA) $50 billion, €39.5 billion
Communications
Telephones â€" main lines in use: 843,923,500 (2007)
4,263,367,600 (2008)
- Telephones â€" mobile cellular: 3,300,000,000 (Nov. 2007)
- Internet Service Providers (ISPs): 10,350 (2000 est.)
- Internet users: 1,311,050,595 (January 18, 2008 [13] est.), 1,091,730,861 (December 30, 2006 est.), 604,111,719 (2002 est.)
Transport
Transportation infrastructure worldwide includes:
- Airports
- Total: 41,821 (2013)
- Roadways (in kilometres)
- Total: 32,345,165Â km
- Paved: 19,403,061Â km
- Unpaved: 12,942,104Â km (2002)
- Railways
- Total: 1,122,650Â km includes about 190,000 to 195,000Â km of electrified routes of which 147,760Â km are in Europe, 24,509Â km in the Far East, 11,050Â km in Africa, 4,223Â km in South America, and 4,160Â km in North America.
Military
- World military expenditure in 2012: estimated to $1.756 trillion
- Military expenditures â€" 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, HKTDC), as well as other non-governmental organizations on its website GlobalTrade.net.
See also
- Economic history of the world
- Common Wealth: Economics for a Crowded Planet (book)
- Global workforce
- Globality
- Globalization
- Global financial system
- Trade route
- World Trade Report
- Emerging and growth-leading economies
Regional economies:
- Economy of Africa
- Economy of Asia
- Economy of Europe
- Economy of North America
- Economy of Oceania
- Economy of South America
Events:
- 2007â€"2008 world food price crisis
- Late 2000s recession
- Oil price increases since 2003
Lists:
- List of countries by GDP sector composition
- List of world's largest economies (nominal) â€" based on current currency market exchange rates
- List of world's largest economies (PPP) â€" based on purchasing power parity
- Historical list of world's largest economies (nominal) â€" for the years between 1998 and 2003
- Historical list of world's largest economies (PPP) â€" for the years between 1 and 1998
- List of world production
References
External links
- OECD â€" Economic Outlook
- - US Bureau of Labor and Statistics, Nov.2014 Unemployment Numbers
- IMF â€" World Economic Outlook
- UN DESA â€" World Economy publications
- CIA â€" The World Factbook â€" World
- Career Education for a Global Economy
- BBC News Special Report â€" Global Economy
- Guardian Special Report â€" Global Economy
- World Bank Summary Trade Statistics for World